The Tor network consists of three types of relays: guards (entry nodes), middle relays, and exit nodes. Each carries different operational considerations. Guard nodes are the first hop in a Tor circuit and see the client's IP address. Middle relays handle encrypted traffic between guards and exits, seeing neither the client's IP nor the destination. Exit nodes are the final hop and make connections to the open internet on behalf of Tor users - exit traffic appears to originate from the exit node's IP address.
For most VPS operators, running a middle relay is the optimal choice. Middle relays carry the privacy benefits of contributing to the Tor network without the legal and operational complexity of exit node operation. Middle relay operators do not see client IPs, do not see destination websites, and do not generate traffic that appears to originate from their IP toward potentially sensitive destinations. The legal risk profile of a middle relay is equivalent to that of any other encrypted traffic passing through a server.
Bridge relays are unlisted Tor entry points used by users in censored regions where the public Tor relay list is blocked. Running a bridge node (with or without obfuscation via obfs4) helps users in China, Iran, Russia, and other censored environments connect to the Tor network when direct connections are blocked. Bridges receive lower traffic volume than middle relays but serve a critical circumvention function. obfs4 bridges are especially valuable because they disguise Tor traffic as random data, defeating the DPI fingerprinting used to block standard Tor connections.
Exit nodes require careful consideration: your VPS's IP will appear in the source field of traffic exiting through your relay. AnubizHost's offshore locations have more tolerant abuse handling than most datacenter jurisdictions, but exit node operation still generates DMCA and abuse complaints that require management. Experienced Tor operators often start with a middle relay, operate it for several months to build relay reputation and flag assignment, and then evaluate whether to add exit capacity.