Have you ever thought about using a VPN while buying cryptocurrency? Here are some reasons you should.
The spread of the internet is great because it has increased the convenience you experience when connecting with people and carrying out transactions. However, you might want to increase your privacy when carrying out certain transactions, which raises the question of how to choose a VPN for these instances.
Nowhere is this more evident than in the world of cryptocurrency, where privacy is of the highest priority. This is because the trading of cryptocurrencies is not regulated by governments because it is considered illegal in most countries, therefore posing a huge risk to the buyers and sellers. When you have a payment method that is both anonymous and secure, you ensure the protection of your identity and financial status.
The truth is that buying crypto using the normal payment routes such as PayPal or a normal credit card can be a huge disadvantage to you. In addition, not every financial provider will accept payment of goods using crypto coins such as Ethereum and Bitcoin. While finding the ideal VPN network to handle your payments can be challenging, it is definitely worth the try for your sake.
How do cryptocurrencies work?
Many currencies, such as Bitcoin, operate on the basis of blockchain technology. This involves storing your transactions on nodes that the system generates, which makes it extremely difficult to make fake Bitcoin because you have to hack into the nodes (and they are quite many).
However, this does not mean all the transactions are foolproof. In addition, since the transactions are irreversible, you cannot recover your coins once they leave your account – which makes it easy for hackers to steal small amounts from every user and accumulate a significant number of coins worth millions.
Some security risks inherent in trading cryptocurrency
The truth about online exchanges, especially if you have had experience with the internet, is their vulnerability – and the same case applies here. The risk is not just limited to that alone, though. Others include:
- An offline wallet is vulnerable to hacking as well as being cumbersome, as hackers can gain access to them through Trojans
- The Initial Coin Offering (ICO) is vulnerable to fraud, especially when it seems very tempting
- Hackers can compromise your Bitcoin wallet, or you can make errors in transactions and reveal your address (and consequently, your identity)
- There are numerous fake trade exchanges with suspicious people
- The address you provide on some crypto sites is not entirely anonymous – Bitcoin, for instance, always record the addresses of the users for transparency reasons, making it easy for you to become a target when you hold a lot of money.
- Many governments deem trading in cryptocurrency as illegal
- Many sites are subject to phishing attacks
- Malware in the form of crypto jacking (hackers attacking your phone or computer and your CPU becomes a mining load for them, therefore slowing down your system significantly)
Why you should use VPNs when trading in cryptocurrency
VPN stands for Virtual Private Network, which makes a bridge between the internet service provider (ISP) and you. The bridge has encryption, which you can compare to a tunnel that protects your activities on the internet – which means no one else can see what you are doing.
Keeping that in mind, here are some of the advantages that it gives when carrying out these transactions:
The truth of today is that many companies are constantly searching for new methods of making profits. Cryptocurrencies, on the other hand, have the benefit of anonymity on the basic level, since the transactions are protected by cryptography.
However, an ISP, a random hacker or any Trading website will still be able to trace you, and you might land in trouble. Therefore, the best solution is using a VPN service, which protects your privacy entirely and allows you to surf using any location in the world.
Many people are looking for ways to steal the assets within cryptocurrencies because they are worth billions of dollars – and that increases the chances of suffering attacks. VPN protects you in this regard, because of its use of encryption technology, which prevents unauthorized people from accessing your data.
They are cost-effective
You might be surprised to discover that using a VPN is much cheaper than using antivirus in the long term. If you are seeking to reduce your overall costs, then it is cheaper to go for the VPN and it will provide even more benefits to you.
For instance, you might find an antivirus charging the paid service for at least $40 annually, while a VPN charges about $10 for the same time period.
While VPN is great, keep in mind it does have its own disadvantages, especially when it is not up to date. Make sure the VPN service you use is of high quality and trustworthy, and take an active role in safeguarding your transactions.