Is your Bitcoin at risk without using a VPN?
VPN for Cryptocurrency Trading
In this era of the digital revolution, cryptocurrency has risen to a top spot in technological innovations. Over the years, cryptocurrencies have been used in various ways by different individuals. While some people use cryptocurrency as a virtual bank to save their money, others use cryptocurrency as a means of investment or trade.
Cryptocurrencies have been around for years but they shot to limelight in the wake of the global financial crisis. Over 1500 cryptocurrencies have been created in the last few years and more are still to come. Cryptocurrencies are here to stay; however, there is no technological innovation without its downsides.
As secure as cryptocurrencies might seem, there are few loopholes in its technology, which if not checked, poses a great risk for the user. Financial transactions with cryptocurrencies are irreversible – if a coin leaves your account, you cannot trace it or get it back. This is why you need to take precautionary steps when using cryptocurrency.
This article will guide you on the most important things you need to know about cryptocurrency and how to stay secure with Virtual Private Network (VPN) while using cryptocurrencies.
What is Cryptocurrency?
According to Wikipedia, cryptocurrency is designed to work as a means of exchange to secure financial transactions, through cryptography. Cryptocurrencies implements decentralized control which opposes the central banking systems (FIAT currency).
In much simpler terms, cryptocurrency is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions (trading, sending and receiving money in the form of cryptocurrency). Cryptocurrencies make use of blockchain technology to gain decentralization, transparency, and immutability.
Cryptocurrencies came into being following the creation of Bitcoin, the first and most popular cryptocurrency on the internet. Bitcoin was created by an anonymous individual simply known as Satoshi Nakamoto who found a way to build a decentralized digital cash system using the peer-to-peer network.
Thousands of cryptocurrencies have been created over the years but the most popular cryptocurrencies are Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, NEO, Stellar, NEM, and EOS.
What are the Risks attached to Cryptocurrency?
Financial transactions using cryptocurrency are not fully secure and anonymous. There are some risks attached to using cryptocurrency. Listed below are a few security issues with using cryptocurrencies.
- ICO (Initial coin offering) fraud – ICO fraud is very popular. A lot of new cryptocurrencies offer tempting deals but some are fake deals. Be careful before investing in new ICOs.
- Offline wallets are prone to hacking – Hackers can identify and steal from your crypto wallet with Trojans.
- Phishing attacks –Over the years, millions of coins have been lost to phishing attacks.
- Fake trading exchanges – Not all cryptocurrency exchangers are legitimate. Ensure to use a reliable exchanger to avoid losing your coins.
- Cryptojacking – Hackers hack into people’s computers or phones and use their CPU to mine cryptocurrency for themselves.
- Compromised privacy and anonymity – You can be identified easily if your IP address is connected to your cryptocurrency address.
- Double spending – This is a scam where the attacker uses a single coin to successfully make more than one transaction which will invalidate all but one of the transactions.
- Selfish mining – Some individuals mine crypto in a way that allows them to gain more cryptocurrency than the standard amount in the pool.
Amid the fact that cryptocurrencies are operated in an environment that accommodates security, there are still loopholes that experienced hackers exploit to take your coins. Hackers can get access to your login credentials by using the data saved by your ISP whenever you connect to your broker – and that’s all it takes to steal the funds in your account.
Crypto trading is a highly sensitive business and the best way to protect your anonymity, financial transaction and activity, is to make use of a Virtual Private Network (VPN). A Virtual Private Network secures your trading activity from hackers and prying eyes with the use of high-grade encryption.
What is a Virtual Private Network (VPN)?
A Virtual Private Network (VPN) is a private network layer that encrypts data sent from your device to the internet. A VPN masks the source and destination of data for security purposes. Simply put, a VPN hides your real IP address from a public network which makes tracking you impossible. Using a VPN is one of the best ways you can secure and protect your cryptocurrency transactions.
There are a lot of free and premium VPN providers that you can try out to secure yourself when surfing the internet. If you want to settle for free VPN service, here are some popular free VPN providers:
- VPN Gate Create VPN Gate account
- TunnelBear Create Tunnel Bear account
- Hotspot Shield Create Hotspot Shield account
- Windscribe Create Windscribe account
- ProtonVPN Create Proton VPN account
- Speedify Create Speedify account
- PrivateTunnel Create Private Tunnel account
- SurfEasy Create SurfEasy account
However, beware of using free VPN providers because they make money by selling or leaking your data which can be detrimental to your crypto financial transactions.
Premium VPN providers are the best to use for maximum protection of your funds in crypto trading. Here are some popular paid VPN service providers in no particular order:
- ExpressVPN (#1 VPN) Create your Express VPN account
- Ivacy VPN Create your Ivacy account
- Hidden 24 Create Hidden VPN account
- NordVPN (Popular) Create your NordVPN account
- SurfShark (We also like) Create your SurfShark account
Before we proceed to why you should consider using a VPN for cryptocurrency trading, let us take a look at the features that make up a good VPN. This will help you in selecting a good VPN to use for your crypto trading.
Features of a Good VPN
The main purpose of using a VPN for cryptocurrency trading is to secure you from any uncontrolled interference. This means that a VPN you have chosen should provide great defensive tunneling through which all your data transfer becomes invisible to prying eyes and attackers. Listed below are a few features to look out for when selecting a VPN provider.
- Encryption methods: A good VPN should provide you with the highest level of encryption available to secure your data while browsing – possibly 256 bit AES encryption or higher.
- Anonymity: Cryptocurrency is all about privacy and anonymity. Hence, it is extremely important to use the most reliable VPN service that will provide the highest level of your anonymity. A simple way of knowing is to check if the VPN provider does not store logs.
- A vast amount of servers: A good VPN provider must possess a vast amount of servers based in various countries. This gives you the freedom to choose from a wide range of locations when performing transactions.
- Speed and Bandwidth: Mostly, using a VPN reduces the average speed performance of your internet connection. A good VPN should provide you with the fastest possible speed and unlimited bandwidth to enhance the performance of your internet connectivity.
- VPN protocols: A good VPN must utilize the strongest VPN protocols available.
- Pricing: When it comes to price, there are several alternatives – free VPN service and paid VPN service. It is good to work with your budget but remember that free VPN services will mostly compromise your security, privacy and leak your data. As for the paid VPN services, they come in varying price ranges. As said earlier, work with what you can afford but remember, crypto trading is a business and you might want to invest a bit to secure your business.
- OS-Compatibility: It must support several operating systems across all devices – Windows, Mac, Linux, iOS and Android. In simpler terms, it must be cross-platform.
- Payment procedures: Since cryptocurrencies are big on anonymity, which is a service offered by VPN providers, making payments should be anonymous and hassle-free. A good VPN provider should support anonymous payment with crypto-currencies because this method of payment adds even more anonymity into your transactions.
- Kill Switch: When connection issues occur between you and the VPN service, the kill-switch feature immediately severs your internet connection without exposing your real IP address. In other words, it prevents your real IP address from getting exposed in case of a VPN connection failure.
- Technical support and ease of use: It is strongly recommended to use a VPN service whose interface is user-friendly and can be used by beginners. Some VPNs contain complex technological features that are difficult to understand by beginners. Make sure it is easy to install in your native language and timely support from the technique group in case you run into technical difficulties.
- Extra features: A good VPN provider should provide extra features like special mode and money-back guarantees.
VPN for cryptocurrency trading
Cryptocurrency trading can be said to be a business and you should take safety measures to protect your money from people trying to steal it. Using a VPN for cryptocurrency trading makes it hard for others to trace your trading activity. As regards security, privacy is the ultimate measure because if you are untraceable, no one can steal your hard-earned money since they don’t know you are the owner.
You can also spoof your location with a VPN which comes in handy when you want to register on trading platforms that are not available in your country. Crypto platforms offer basic privacy and anonymity but a VPN for cryptocurrency trading service adds an extra layer of security against malware, viruses, and phishing attacks, which makes your transactions more secure. There are tons of reasons why you should use a VPN for crypto trading but listed below are the major reasons why you should use a VPN for cryptocurrency trading.
- Privacy and data protection
Over the years, the number of hackers and other prying eyes online has been on the rise. Similar to making online bank transactions, some crypto trading platforms require you to enter bank details as well as identifying information.
Using a VPN for cryptocurrency trading is strongly recommended to protect your data from hackers and third parties because it encrypts your data with 256-bit encryption. Anytime you connect to the internet either via public Wi-Fi hotspot or a private internet connection, good tunneling protocols of data hides your IP address to prevent IP surveillance by government officials, hackers, and forensic analysis firms.
To date, a substantial number of financial markets and countries have placed bans on online cryptocurrency trading. Irrespective of their status on online crypto trading, it would be impossible to safely enter the financial markets if a VPN for cryptocurrency trading isn’t used. With a VPN, you can cloak yourself from government surveillance. This means that you can carry out your crypto trading activities completely anonymously (N.B: Try your possible best to avoid KYC/AML exchanges).
- Access to blocked Websites in Your Country
A great number of people cannot access the internet freely due to Geo-restriction. Some Crypto brokers have placed a ban on certain countries because of specific law restrictions. These brokers make use of geo-blocking to make their website inaccessible to visitors from restricted countries. The good news is you can carry out your trade anywhere in the world if you’re using a VPN.
VPNs grant you access to websites that are geo-locked by routing your connection through a remote server that masks your real IP address and convinces the broker’s website that you are visiting from an approved country. For example, you can perform a transaction from Switzerland while appearing as though you are in Italy. This is particularly useful for residents of the USA as most exchanges are blocking access to residents of the USA.
Needless to say, a reliable VPN is a handy privacy and anonymity tool for crypto trading. Also, using a VPN opens you up to a wider range of opportunities to trade on the internet. The Blockchain technology is still vulnerable to hackers even with its secure and anonymous system.
Remember free VPN services are not advisable. It is better to invest in securing your money than to risk the chance of hackers stealing your money from leaked data. With all these said, you should have seen the need for you to consider using a VPN for cryptocurrency trading.
Millionaire Bitcoin trader shares important lessons to help you secure your future as a successful crypto trader.
Download these highly important free videos every beginner Bitcoin and crypto trader must watch. We want to make sure you don’t fall prey to the many crypto trading scams that plague the space and this is the best education to ensure you start on the right path.