Static IP addresses are fixed and remain unchanged, while dynamic IP addresses vary each time a device connects to the internet.

A static IP address, as its name implies, is a permanent Internet Protocol (IP) address that does not change over time. It is manually assigned to a device and remains constant until the user decides to alter it. Static IP addresses are typically used for hosting websites, providing email or FTP services, or in applications where a consistent IP address is essential. However, static IP addresses can present security risks, as they are easier for data mining and tracking purposes. Additionally, they can be less cost-effective due to the increased management and maintenance they require.

Conversely, a dynamic IP address is automatically assigned by the network each time a device connects to the internet, and it changes over time. This assignment occurs through a process known as Dynamic Host Configuration Protocol (DHCP). Dynamic IP addresses are generally more cost-effective and provide better privacy, as their changing nature makes it more difficult for cybercriminals to track the device. However, they are not ideal for hosting websites or services that necessitate a constant IP address.

In summary, the primary distinction between static and dynamic IP addresses lies in their stability and intended use. Static IP addresses are fixed and suitable for hosting services, but they come with increased management demands and a higher security risk. In contrast, dynamic IP addresses change with each connection, offering enhanced privacy and cost-effectiveness, though they are not suitable for services that require a stable IP address.