In many ways it is easier if you are using a different DNS to just put in it manually on the device.
Running 2 routers in the house can cause issues. If you have no need to say share files with other devices in the house it likely will be ok. Makes troubleshooting issues harder sometimes but it should work...just be careful that both routers do not use the same LAN ip subnet.
Although you can set the DNS in the router I do not always trust doing it that way. The router is acting as a proxy.
Best way is to put the DNS you want to use in the DHCP setting in the router. When the router assigned a IP to your end device it will also give it this DNS you assign. It pretty much is the same as if you had changed the setting manually in the nic but the DHCP server will now give you the DNS you want. The default is to give you the IP of the router itself and it act as a proxy. You can see what is being assigned with the IPCONFIG command.
I am not sure if the adblocking dns servers support encrypted DNS. Although nobody can see what you are doing on any site because of HTTPS encryption they can get the names of sites you are using. Encrypted DNS prevents that. They can still get the IP but since many IP are in large shared data centers it does not always get them the actual web site you are using.
You really want to use encrypted DNS if you can. Mostly it prevents your ISP from collecting data.
On the secondary router I'm not worried about my PC, it's actually connected directly to main router to avoid wifi problems, I just wanted all other devices, TV, phones and other pc of family to avoid ads when connected to wifi of the secondary router.
I feel I really entered the rabbit whole with DNS, there is a lot of info I had no clue about, even though I am only scratching the surface but I have been testing and reading about DNS (just to know the abbreviations and terms) and I have found out the following:
The DNS I setup on my router (NextDNS and AdGaurgd) were really working when testing on my PC (I made my PC use secondary wifi temporarily) but they both don't block ads like I expected, I setup and account with Adgaurd and made sure everything is showing up on dashboard and everting is green and connected and blocked sites were accumulating in counter, and I used sites people mentioned by those DNS companies and 3rd party sites, and my own local site, in general DNS alone does not block anything near what a browser extension like adgaurd itself or ublock origin does for me , I kept complaining thinking they are not working when they were working just not like what I expected, the local site news seems almost 100% immune to DNS blocking, using incognito, restarting PC and router, Flushing DNS, nothing would remove their ads, the ads might be setup manually by the site and not coming from known ad sites, this is my conclusion but I don't know how to prove it, only browser extension can block their ads.
DNS does not block youtube ads for me which is 90% of the reason I wanted to set it up on my router!
2nd problem all these "free" DNSs are not really free, I barely used PC for one hour and I was at 2k out of 300k of monthly limit so I don't think this will work, it's even much worse, Adgaurd wants me to reconnect my router to their server everytime my IP change or pay to fix this, I don't know how their DNS work when not registering.
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Using 2 routers are the only option, wifi from main router is 100% blocked by floor walls, I don't what other method you suggest, maybe you mean not set it up as router mode you mean it? but I still prefer two different networks, yes they both have different IP 192.168.0 vs 192.168.1, there is no interest for any interactions between devices from each network at this time, my main PC is always connected to main router so it can connect to main network and I connect it to wifi of secondary router to connect to devices on secondary network.
The only problem I am aware of is phones connect to secondary network does not cast to TV unless router restarted, or I use code manually. I wish to solve this problem but I have no clue what is causing it.
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I never heard of DNS for DHCP, I am using it now as advised, the router itself is pointing to main router though, using nslookup I get correct server of Adgaurd so DNS is working for devices connected to router.
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I will keep looking into Encrypted DNS, but I feel hiding my activity from ISP or big brother won't work well unless I use a good paid VPN so I am not going to worry about this too much, I'll presume they see everything, I heard big sites use their own IP address, only small sites hide under a range of IP address .
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Since DNS is not blocking ads like I want specially youtube ads I don't know what is my next step but thank you for all the info, this has been eye opening for me, I needed to know all this, sadly can't seem to benefit from it.
Firewall logs reveal a lot.
I'm not sure how advanced your router's firewall rules and capabilities are, but you can allow TCP/UDP port 53 and 853 only to the NextDNS DNS address and block TCP/UDP port 53 and 853 to all to help ensure you reach the desired DNS service.
To make sure DNS is working? Now I think it is (except poor results), well I have TL-WR941HP v2.0, I see no error in logs except LED control that Tplink asks users to ignore, it has NAT forwarding section though with port triggering.
But since Adgaurd dashboard is saying it is working and blocking a lot of sites I guess it is working, 11k sites blocked in less than 24hours with light use and no useful results.
Based on this do I need to bother with quad9 or cloudflare or something else? I heard adgaurd was supposed to be the extreme one of them all.