If you are a cryptocurrency holder or investor, you surely know about all the hacking scandals that crypto exchanges have endured. You are familiarized with all the potential dangers of holding digital assets. Also, you have undoubtedly thought about finding a way to make them more secure. After all, you need to protect what you value.
The whole “Bitcoin and cryptocurrencies are anonymous” is a myth. It isn’t necessarily true. They may be a revolutionary, innovative way to “be your bank,” as the popular saying goes, but as it turns out, banks have security vulnerabilities, as do digital assets.
However, we do need to point out that while traditional banks have a way to secure our assets. Through insurance against hacks, fraud, and other potential threats, we need to find ways to safeguard our crypto trading. As our private keys are the vault and we hold the code. It only takes one person to gain access for you to lose your investments.
The Internet may seem like a safe place, but it isn’t. The fact that you have no one watching you in the same physical environment as you are. It doesn’t mean that nobody is spying you and watching every step you take when you go online.
Trackers, cookies, intelligence, hackers, and ISPs keeping and sharing logs of user’s files. These are the ever-present threats that make it hard for your crypto assets to be genuinely safe.
VPN technology and its benefits
It would be fantastic, therefore, that you could find a way to make sure every bit of data you send and receive on the web was encrypted, so no third-party or external agent could decipher your content and take advantage of it.
That method already exists, and it comes in the form of VPN technology. Virtual Private Networks (VPN) are online tools to achieve content encryption and protection. Under the method’s tunneling protocol, the data is transfer to remote servers away from those managed by the ISP, which would be an information rerouting. Since that is usually how the system works. The ISP manages connection requests. However, if you hire a VPN brand, its servers will do the work instead.
VPN is used around the world for unblocking international content that would be off-limits because of geo-blocking restrictions. That is the way to open crypto exchanges and platforms that are inaccessible in some locations. However, the primary benefits that crypto traders can enjoy thanks to VPN technology are enhanced privacy and security (thanks to anonymous browsing,) which is music to traders’ and investors’ ears.
VPN services, in addition to offering a myriad of features that can boost your online security, can allow you to connect to several countries in the world via virtual servers and foreign IP addresses. That is especially helpful to people from specific nations (such as the United States, for example,) that have banned its citizens from taking part in ICO’s in their quest to spoof their locations and take part in any Initial Coin Offering they desire.
Why you need a VPN for crypto trading
Crypto trading is an exciting activity and a way for investors to be acquainted with the future of finances. Involving with crypto can mean if luck strikes and you know how to read the market, that you build your way to financial stability.
Crypto trading means exchanging digital assets for fiat currency or other coins. Many businesses now even provide the option to give payments via Bitcoin and other altcoins in the platforms that allow that mode. Now, some US states such as Ohio are allowing to pay taxes this way.
The blockchain technology is a handy way to secure our digital assets and to provide trustworthiness and validity to pacts via smart contracts. However, it is not entirely bullet-proof, and as life has taught us many times, it isn’t perfect because nothing is. Users’ pseudonyms attach to personal information, which makes transactions linkable and vulnerable.
VPNs help investors to avoid most of the potential issues or obstacles associated with the access of cryptocurrencies on a worldwide scale. Their use can ensure that people can hide their so-called online identities. Including their IP addresses, to make it harder for hackers or other external agents to access personal data traceable or linkable to records on the blockchain.
If you are going to hold a digital wallet, make sure to enhance your security, privacy, and anonymity with a VPN. Encrypting your wallet will practically guarantee that no one will have access to your transactions or your payment address.
A VPN can also help you access your wallet in countries in which it may be blocked. Virtual Private Networks, offered by brands and companies online, often manage servers in a list of countries. The broader the list, the more nations you can access its pages. Having full access to crypto news sites, exchanges, and related content at all times is also an incentive to use VPNs for crypto trading.
Free or paid VPNs?
VPN technology comes in the form of apps or clients provided by online security companies. These brands can either offer a free service or charge its subscribers a monthly, quarterly, annual, or bi-annual payment, depending on the deal.
Free companies have the apparent benefit of involving no costs per use but beware: nothing is entirely free in life. These apps often don’t encrypt your content or do it without the needed strength or efficiency. Also, they usually leak your IP address or keep logs of your activity. So, that would go against the point of using a VPN to protect yourself from the potential pitfalls of crypto trading.
Paid VPNs also have significantly more servers and countries available for connection. And more security feature such as double VPN, split tunneling, DNS leak protection, or a kill switch. Free VPNs also come with annoying bandwidth limits and malware infections.
Taking all that into account, free VPNs are not safe for crypto trading. Because you don’t want to be traceable, and you also desire to remain as anonymous as possible. Free options can’t guarantee those traits.
In conclusion, cryptocurrencies are, by definition, electronic cash. Since they are classified as digital assets, they can always leave a trail. You use electronic wallets to exchange and trade. And in the process, your pseudonym may connect to your transaction and personal data. To substantially decrease the possibility of that scenario taking place, use a VPN for crypto trading.