There’s been some commotion lately about an IP address giving away someone’s location but the truth is your IP address is randomly selected from a HUGE ARRAY of addresses assigned to your Internet service provider (ISP) so the best case scenario for the person trying to track you down is to use a third party online utility like “where is” or whatever its called these days, to get some general idea of your geographic location such as “CYTANET Cyprus” or something like that.
Big deal!
PS: Your home address is irrelevant to IP addresses.
Regards, GR.
Basically you send your IP whenever you connect to another computer like a webserver to get a webpage or the PC of somebody else when you chat. The other computer needs to know your IP address because that is the address the information is send. So basically when you are online and you surf the web, chat or do any activities you send your IP to others. If you want you can use a proxy to hide your real IP but proxies can slow down your connection and cause other problems and there is no need to use them unless you are doing something illegal and you want to hide your IP 
