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In this tutorial, Grant explains how to set up Proxy Bonanza proxies with Local Scraper. After logging into Proxy Bonanza, users will see their proxy plans. By clicking on 'details,' they can access their proxies and download essential credentials. The tutorial emphasizes exporting proxies without the login and password, focusing solely on the IP and port, separated by a colon. Users will download the proxy list as a CSV file, which saves to the default downloads folder on Windows. Although the CSV format is suitable, it may contain an extra line when dealing with multiple proxies, which can affect functionality in the program.