I'm using internet through USB Dongle having GSM based 3G connection, it is using DHCP to configure IP address, I'm having a small HTML page in my computer that uses Google Maps and Browser's Geolocation capabilities to trace my location when I'm connected, so when I run this page, in the Map frame, I see locations which are too distant geographically from where I live, so all I can conclude is that the IP address I get upon new connection through DHCP is at different locations every time (the reason might be due to different locations of the server of my ISP), so how much I'm safe in this context, or shall I use proxy server to conceal my IP so that my location is not traced anyway.
Connecting to a service through a proxy server will make your connection look like it originates from the proxy server from the service's point of view. Unless you send data to the service revealing your location the service won't know what's behind the proxy server.
Certain proxies are available on lists and therefore might be banned by some services. Lists of the tor exit nodes, for example, are readily available and a service can choose to refuse connections from such hosts.