Most of the comments are correct, but there's more to it. It does give you an IP address other than your default router's external IP and your traffic is encrypted. But, your routing is still visible; meaning snoopers can see the IP address flying across the network and they can tell your traffic is encrypted. But, don't fret about anyone hacking your traffic. It's not worth anyone's time or resources to try to do it. You should also know, VPN providers allow you to choose what area you want to 'appear' from. The larger the provider the more area offerings. That can be both a blessing and a curse. Take Amazon for example. Some of their programming is geographically specific. The 'not available in your area' is an annoying message when I'm trying to find a location to play the program. As for pirating sports channels, you'll almost assuredly want to appear from another country. AND, hope your VPN provider's network isn't on the 'block' list. Which is happening more and more as content people (eg ESPN, Netflix, etc) are getting smarter at the game. AND, MOST IMPORTANTLY, be aware of FREE vpn providers. They're full of click bait viruses, scams, etc. I circumvent this by setting up a virtual PC (i.e VM) each time, complete with VPN, and antivirus (just to give me a feel for what providers are worthy or not) AND fully deleting the VM each time.
Hope that provides more helpful information!