Trading cryptocurrencies is a growing business, but it is not safe from hackers and malicious groups. These entities can inflict severe damages, such as investment scams, email phishing, fake apps, and blackmail.
To protect yourself against these threats, a VPN is your best bet. In this article, we’ll count down seven reasons—and a bonus reason—why you should be using VPN to trade crypto.
What is a VPN, and What Does It Do?
Cybercriminals carry out crimes like scams and phishing by tracking your digital footprints. In other words, whenever you connect to an unsecured internet connection, you leave a trail behind that hackers, your ISP, and even your government can view.
On the other hand, a VPN (Virtual Private Network) is a tool that can encrypt an unsafe internet connection making it secure from any unwarranted threats and attacks.
Reasons You Should Use VPN for Crypto Transactions
Here are some benefits crypto traders can enjoy by using a VPN.
1. VPN Helps Bypass Firewalls
There are many instances where your ISP provider might set up different firewalls to stop users from connecting to crypto-related websites using their network. Several reasons could be behind it, including your ISP not wanting to associate with crypto trading.
But a VPN allows you to bypass all of these firewalls easily without getting detected by your ISP, meaning you can carry on your business without anyone putting limitations on it.
2. Makes Internet Traffic More Secure
Whether you’re using a home or a public internet connection to carry out your transactions, likely, it will only use WPA2 for security purposes. Although this might seem secure, it isn’t and always puts you at risk of being exposed to cyberattacks.
But when you connect a VPN to your internet connection, it automatically encrypts every bit of data going to and from your computer, making it safe and secure.
3. Hides IP Address
When you visit any trading platform, including your blockchain explorer, they can view your IP address. Therefore, they might also get a hold of your crucial information, such as your country, city, zip code, and ISP.
On the other hand, connecting your internet via a VPN masks your original IP address with a remote one, effectively making you untraceable on the internet.
4. Security from Phishing Attacks
Phishing attacks are among the most go-to methods for hackers to steal cryptocurrencies — these attacks are conducted using various ways, including spoofing and fake giveaways.
To tackle this problem, some VPNs provide a blocklist service that stops users from landing on a phishing website.
Must-Have Features for VPN to Trade Crypto
In addition to the regular benefits, a VPN can provide some extra features, especially for crypto trading.
A Kill Switch is one of the new and vital features of premium VPNs. It acts as a line breaker and shuts down your internet when you get disconnected from a VPN, so you can easily surf the web without worrying about your identity being exposed.
When installing a VPN for your crypto trading, ensure it’s a no-log one. Because if even the VPN starts to track your movements on the internet, then there is no purpose of being invisible in the first place.
Split tunneling creates an additional route for the user that they can use for all of their activities that don’t need encryption. It gives users freedom and helps in cases where the VPN connection is bottling their internet speed.
How to use a VPN for cryptocurrency transactions?
You can follow these simple steps to use VPN as an additional barrier to crypto transaction security.
- Register for a VPN service.
- Download and install a VPN app for your devices.
- Connect to one of the servers.
- Browse any crypto exchange website or app you want and start trading securely.