A lag switch allows you to freeze the game and your surroundings ie. players. Also allows you to stance glitch in some games ie. freezing your self in a stance viewable by others not by you.( meaning: other players will see you in that stance, but to you it will look regular) A good stance is typically prone, because players wont be able to see you as easily. Also you can bullet jump, extend timers, get across open areas unseen, ect. ect.. Net tools is the same as a lag switch when it comes to what they do. Net tools is a computer based program rather than an actual switch hooked up to your router. Net tools increases your ip activity thus causing lag.
I prefer to use a actual switch because it is easier for me to flick on and off as apos to turning to my keyboard and flipping a switch. My switch is customized into my controller. This was easily done with a drill and a little flip switch i got for home depot. its less bulkier than a light switch. The problem is getting your internet settings just right, my switch has worked perfectly sence this summer and now im having problems.
heres a link on net tools if you want to read up on it.
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i would highly suggest using a switch. ( atleast i personally find it easier to use)