Why It’s a Good Idea to Use a VPN When Trading Cryptocurrencies
A lot of people around the world are into trading cryptocurrencies. There is a whole community, consisting of traders, platforms, exchanges, and different digital coins.
Even though this financial market has grown substantially, there are still many obstacles. When trading on a platform, your transactions might be secure, but virtually all traders are their own banks. This factor means that you need to protect your assets.
If you enjoy the crypto market and what it has done for the world, you surely cherish things like online privacy and security. Luckily, some tools can help you reinforce both: your privacy online in general and during various crypto-related activities.
These tools are called “Virtual Private Networks” or VPNs.
What Are VPNs?
The name says it all: a VPN is a private network through which users can access the public network. But why is this additional layer important? Simply put, a VPN acts as a protective shield when you are surfing online. When using a VPN, all of the data you send or receive is encrypted.
This means that nobody can see or let alone steal your data. At the same time, the source that is sending and receiving data is also masked. Your IP address remains anonymous so that nobody can track your activity online.
There are both free VPNs and paid ones. A lot of the free VPN options are excellent, and it’s not necessary to spend money on protection. Still, make sure to thoroughly research providers before you choose one.
Security Risks of Cryptocurrency Trading
The most significant risk of trading cryptocurrencies is online exchanges. More specifically, they can often have vulnerabilities that hackers can expose. However, there are other threats:
- Both online and offline users are a target of various Trojans that can find out your information and steal cryptocurrencies;
- As initial coin offerings are becoming more common, so are frauds related to them. A lot of them are legit while some aim to steal your information;
- Similarly, there are many fake exchanges;
- Bitcoin scams are becoming more frequent;
- Hackers can discover your bitcoin address through your IP and even find your real identity;
- A lot of bitcoin addresses have transparent information for better usability, but this makes traders vulnerable;
- A common malware issue related to the crypto world steals your CPU resources for mining;
- Some governments ban, fine, or tax people involved in trading cryptocurrencies.
Ways a VPN Can Protect You
Crypto transactions also involve sending and receiving data. This is why it’s crucial to protect it from various mischief online. A good VPN does this by:
- Protecting your data and making it difficult to track and intercept;
- Since your IP is hidden while online, hackers will find it difficult to reach you with a realistic phishing attack. In many cases, they won’t be able to notice you at all;
- All good VPNs hide IP of the user. As a result, it removes the threat of IP tracking. Additionally, the location of your computer can’t get tracked to the bitcoin address;
- If your government bans crypto trading, you can bypass it entirely by hiding your IP or switching it to some other location. Not only will you gain access to geo-restricted services, but you can also trade freely without any taxes;
- A reliable VPN provider will have a no-logs policy. It means that even if you get caught by authorities, the VPN provider will not have any information about your activity to report;
- A lot of VPNs have a kill-switch, which is an added layer of protection against disruptions, suspicious activity, and internet failure. This feature protects your location and IP in any unexpected scenario.
VPN Protects You at All Times
A VPN will give you all the security and privacy benefits mentioned above, and it will do so during all your online activities. Over time, the internet has become a complicated place with many dangers. A VPN is your security layer that ensures you don’t get into trouble or become a victim of hackers’ attacks.
Most VPNs also offer mobile apps that work the same way. This is especially important as mobile devices are more vulnerable to security breaches. You can use your smartphone freely to trade coins without having to worry about your security.
Apart from protecting your data, a VPN allows you to torrent safely, unlock geo-restricted services, and stream content that might be blocked in your area.
One of the best ways to secure your cryptocurrency transactions is to use a VPN. However, don’t forget about other security measures and practices you need to implement as well. No matter how much protection you get, it’s essential to be responsible when it comes to online transactions.
Featured image: livecoins.com