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Unlocking Crypto Security: The Benefits of Using a VPN

Your digital cryptocurrency is valuable. You may start off with a small amount. Then, you’ll find that it can grow more than quickly than your usual fiat currency. So, it is understandable that you may want to protect it as much as you can.

Why Consider a VPN for Cryptocurrency Security?

There are various ways of protecting your cryptocurrency. One way you can do that is by using a hardware wallet that can keep your link to your money safe without having you to connect to its online storage 24/7.

Of course, you will eventually have to go online to access your money, whether you want to check your totals or you want to purchase something with what you have.

When you do go online, you want to make sure that the connection is secure. It’s why you are probably wondering whether VPN can help you with that.

Understanding VPN Functionality

A good VPN service helps keep your identity private. You may not think anyone would try to identify and trace you, but you never know.

These days, you will notice that more ads that target you have been popping on your screen. So, how do these third party sellers know that you want a new chopping board? How do they know you like the color purple, are age thirty-five, or enjoy horror movies?

When you visit various sites on the World Wide Web, you leave a lot of clues about yourself. Sometimes, you leave so many things that other people can collect those information and create an account based on who you are.

That’s pretty scary, especially if you believe you’ve been oversharing online.

However, it is also impossible for you not to go online. A lot of the things that you need are on the web. Your cryptocurrency accounts are online.

So, you may want to consider using VPN. But what can it really do?

Whether or not you own privacy coins, a VPN can help you maintain a certain degree of privacy online. Third parties will not be able to steal your identity and your money when they cannot even get hold of your identity.

That’s right. VPN provides you with an additional degree of privacy that will keep your online presence safe from prying, unwanted eyes.

Even those who don’t have cryptocurrency have taken to using VPN services to keep their online activities private.

Can VPN help you keep your crypto safe?

The thing about cryptocurrency is that most of them come with enough security. Yes, sometimes, the transactions can be assessed by a third party but there are ways for you to avoid getting associated with your own transactions.

Some people simply go for privacy coins. Privacy coins may be banned in some places, but they certainly can keep themselves secure. People can’t access your transactions because they are either locked in at private or have a private setting that allows you to protect them even more.

In some cases, people go for more public coins such as the ever-popular Bitcoin. Then, they use a bitcoin mixer that will blend your transactions with other people’s own. The jumble confuses third parties. They won’t be able to put together all the information that suggests that a transaction is done by you to purchase whatever it is.

By adding VPN, you add another layer of security. That is definitely not something that anyone will say no to. You are, after all, dealing with possibly a lot of money. If not, you are still dealing with secure accounts that contain something valuable. The account may not have a lot now, but you may be trying to put in more coins for later on.

Why should you use VPN when working with cryptocurrencies?

Here are reasons for using VPN for crypto trading:

1. VPN adds another security layer

As mentioned above, another security layer is always welcome. VPN not only provides extra privacy but it also protects you against viruses and malware. It will also protect your from phishing attacks. You may now be fully aware of what a phishing attack looks like, but hackers always find different ways of approaching their victims so that they will get their sensitive data.

Phishing is a serious matter. Hackers use this strategy to steal cryptocurrency. Sometimes, it can be in the form of fake giveaways. They also spoof sites, making copies that look like the legitimate ones.

It’s no joke. In 2018, phishing has led to the lost of $9 million worth of crypto assets. Sadly, VPN can’t directly fight phishing but some can provide you with a blocklist that will help you avoid ending up on phishing websites. Do not click on suspicious links for whatever reason. Do not download any attachments.

2. VPN encrypts your data

VPN hides your data in plain sight, although more likely it is hiding it deeper than that. It makes it harder for hackers to intercept your information.

Encrypting makes your data indecipherable. It is especially important if you are using your home network or a public Wifi to transact. These networks often use WPA2, which isn’t secure by any means. Even the improved WPA3 is also vulnerable to attacks.

Some cybercriminals can set up a false network that may prompt you to connect with it. Once you connect to that fake hotspot, the hackers can monitor all your data or traffic.

With VPN encryption, your data can still be secure even if you end up connecting to the fake network.

3. VPN hides your IP address

A lot of people go for VPN even when they don’t have cryptocurrency – for this reason. They want to hide their IP addresses. They don’t want certain sites to log their IP addresses as having visited those sites.

Because your IP address is hidden, you can buy and sell crypto coins anonymously. Third parties, including hackers and government organizations, will not be able to trace your activities. Of course, it is your responsibility to keep your actions legal. Crypto coins have already been suspected so much. Help it gain a better reputation to help other traders get and maintain the privacy they deserve.

When you transact using a trading platform, the site can see your real IP address. The site can quickly associate your trades with your public wallet address.

Your IP address is a means of identification in itself. It even goes further by revealing your location down to your ZIP code and city. It can also reveal your Internet Service Provider (ISP). It means that when the site goes through a leak, your information will be vulnerable out there.

Hackers are good at using one little info about you to get what they want. You can never be too careful.

4. VPN has a skill switch and will not store your logs if it’s privacy oriented.

Because of how a VPN is set up, it will help you maintain your anonymity online.

5. VPNs can hide your online activities.

You don’t really have anything to hide. You are performing legally-sound tasks. However, you also want to prevent criminals from accessing your information. So, yes, you need to keep your cryptocurrency-related activities on the down low.

Without a VPN, your ISP will know where you have been. It will not know what transaction actually happened but it can guess well enough based on the website you’ve visited.

There is nothing wrong with going on to your cryptocurrency platforms, but a third party may be able to see just how frequently you go there. There may be patterns established, making you more vulnerable to cybercriminals.

With a VPN, you can hide where you’ve been and can secure your data packets.

6. VPNs may help you avoid legal issues.

Let us be clear about one thing first. This site doesn’t encourage you to commit illegal activities. However, it understands that some countries frown on cryptocurrency transactions as a whole. Some would actively participate in its regulation.

If you’re in China, you may even find authorities blocking your transactions. With a VPN, you can avoid getting blocked and censored.

7. VPNs can help you transact with coin that are normally geo-blocked.

With VPN, you can get past geolocation restrictions. So, you can work with currencies that are not normally being traded in your area. You may have to be aware of what country your VPN is set up in order for you to trade the coins of your choice.

8. VPNs let you through firewalls

Some institutions, such as companies and schools, may use firewalls that block certain sites. Some of them only block porn and social media in order for their students and employees not to visit them during the time they should be studying or working.

Others go further by blocking cryptocurrency platforms. They may not want to be associated with such trades. You shouldn’t be trading in those environments in the first place.

Your network admin can still detect VPN usage. Only go to your crypto platform if it’s an emergency. Cryptocurrency can be very volatile, and there may be times you need to trade in a less than convenient place. Just don’t make it a habit.

Are all VPNS created equal?

It’s safe to say that VPNs are not all created equal. One thing that you can be sure of is that you should never trust those free VPNs being offered online. Free stuff are great but not when they can endanger your data.

You can also go through reviews and see which one can provide you with the features that you need to not only protect your cryptocurrency but also to protect your identity and online life as a whole.

What are some VPN features that protect crypto trading best?

1. No log-policy

This feature means that the service provider will not collect your browsing data. So, you can be assured that your activities remain private.

2. Kill switch

A kill-switch feature ends your Internet connection when there are connection issues. It does this without compromising and exposing your IP address.

3. Designed by states with no mass surveillance programs

You may want to check out which countries or states don’t have mass surveillance programs. They produce the most private VPNs.

Consider places such as Panama, Switzerland, and the British Virgin Islands.

4. Obfuscation

This feature hides VPN traffic. So, not only will you be able to hide your transactions, IP address and ISP but you can also hide the fact that you are using a VPN.

Why is this necessary? Some countries may ban not only cryptotrading but also VPN usage. You don’t want your VPN itself to be blocked. So, you need obsfuscation, which helps you remain under the radar.

5. Split Tunneling

VPN can slow down your speeds. It is especially true if you connect to a site that have several other people connected to at the same time.

You will notice just how slow a VPN can make your transactions when you are trying to sync your crypto wallet to a blockchain. Just when you don’t need your Internet to lag, it will.

So, you need a VPN that can do split tunneling. This feature will allow you to choose to encrypt the most sensitive parts of your transactions. So, you can have your VPN encrypt all your cryptocurrency related transactions while it will leaves out other applications, such as your social media, Netflix, Skype, and other applications that don’t need to be hidden – at least not at the same time as your cryptocurrency trades.

6. Strong encryption

You may need to know just how well yourc hosen VPN can encrypt data. Go with one that has strong protocols, such as SoftEther, OpenVPN, WireGuard, or IKEv2. Going for military-grade encryption is also advisable. Go for AES-128 or AES-256.

You know your VPN is not safe if it uses MPPE encryption and is trying to force you to use PPTP. It means it can easily be cracked.

7. Prevents leaks

You should go for a VPN that does not allow your data to leak out of its tunnel. Leak protection is good if the VPN has a DNS, IPv6 and WebRTC leak protection.

8. Phishing Protection

Your VPN should be able to protect you from malicious sites and phishing. Unfortunately, a VPN cannot protect your from a malware infection. However, it can at least prevent you from connecting to malicious sites, posed as the real trading ones.

Should you use VPN for crypto trading?

Now that you know what VPNs can bring to the table, you’re probably wondering if the short answer will tell you that it is compatible for working with crypto trading.

The answer is yes.

Conclusion

So, does a VPN protect your Crypto? Well, it is not specifically designed to be used for cryptocurrency transactions. However, some of its best features can help you prevent phishing and other cybercriminal attacks from happening.

A good VPN can protect you from cybercriminal activity by encrypting your data and disguising your IP address. It can also prevent you from being accused of criminal activity. So, is it worth the investment? Yes, it is. You need a VPN to keep your transactions hidden from authorities that still cannot differentiate between legal and illegal crypto transactions and from third parties looking to steal your information.

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