That is the same type of thermostat that I am talking about, a proportional dimming thermostat.
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Yes a rheostat is a manual device whereas a thermostat is an automated device. If the room your cage is in stays about the same temperature most of the time a rheostat will be much cheaper and be just as effective. But if your room temperatures change often you are going to have to moniter cage temperatures and adjust the rheostat. I personally prefer an automated system that regulates itself. That's why I use and reccommend thermostats.