Why you Need a VPN for Crypto Trading in 2024
Did you know that crypto hackers have stolen a total of $2.99 billion in cyber attacks in 2021?
And despite the tight security around decentralized cryptocurrency, this number continues to grow.
With an increased interest in cryptocurrencies—not just for buying or selling assets but also for making investments, many people are hopping on the train of crypto dabblers. And why not, it is based on blockchain technology which makes it a decentralized marketplace—not regulated by anyone.
But it also comes with its own set of risks, particularly related to hacking and security. This is where using a VPN for crypto can help in reducing potential losses and provide added privacy.
Stay completely anonymous with these cryptocurrency-accepting VPNs:
- NordVPN – Best Crypto-Friendly VPN – NordVPN’s been around the block a few times, and it knows how to make its users happy and safe. They accept anonymous payment through Bitcoin, offering zero logs, military-grade encryption, and so much more.
- Surfshark – A new VPN that has collated all the best practices and features of past providers into one scintillating privacy package. Dirt cheap.
- ExpressVPN – Not dirt cheap, but worth every penny. Fast speeds, incredible network, good fail-safes.
- PureVPN – The jack-of-all-trades with some extra focus on unblocking censorship like China’s Great Firewall.
- StrongVPN – Well-establish provider trusted by thousands of users worldwide. Reliable, tough as nails.
Nobody wants a leak in their privacy shield. To boost your anonymity and stay safe online, your best bet is to use a VPN that accepts cryptocurrency transactions. By paying for your VPN with Bitcoin, you can keep your name out of things and enjoy heightened security everywhere you go.
What is crypto trading and its related risks?
Other than being used like a traditional physical currency, crypto can also be used for trading. There are numerous markets located in different countries around the world that allow trading in different cryptocurrencies. People can trade any time and across any time zone, unlike stock markets.
Since crypto is unregulated, it comes with its own set of risks. As the transactions are irreversible and can’t be traced, it gives an edge to hackers who exploit these vulnerabilities.
Therefore, we must be aware of some security risks while buying crypto-
- Beware of fake crypto trading exchanges that trick people by manipulating trading volume and stats to onboard people who are still new to crypto trading. It’s better to stick with trusted platforms when dealing with a volatile market like crypto.
- Hackers can corrupt your device and install mining software on the system to mine cryptocurrencies from your account and transfer all funds to themselves. This is known as cryptojacking wherein malware can wipe almost the entirety of your account. Statistics suggest that in 2020 cryptojacking cases increased by 28% leading traders to practice extra caution.
- Hackers make a copy of the coin and use it for making transactions while keeping the original one for themselves. This is known as doublespending– a potential risk in crypto trading.
Reasons to Use a Virtual Private Network (VPN) for crypto
It is a common misconception that crypto provides complete anonymity to the user. It does increase your privacy to a large extent but is still traceable by any entity (hackers, government etc.) through your IP address. If your trading platform asks for document verification then it’s almost certain that your identity is traceable through the platform.
A VPN secures your online data through encryption and safeguards your identity. It must be noted that even VPN can’t provide complete anonymity but through its added advantages you can buy crypto without much worry. Some of these are-
VPN Secures Your Traffic
It’s likely that you use private wifi connection to make crypto trades which offer almost no security. Hackers can easily trace your location and even get their hands on your login credentials!
VPN encrypts your online traffic/data and makes it indecipherable. It also hides your IP address and reroutes your traffic from another location that could be miles away. This makes it almost impossible for anyone to track your online activities. So if I am sitting in Canada, a VPN might reroute my traffic from the US or Japan or Nepal.
Protection from Phishing Attacks
Phishing is the sending of fraudulent messages from a seemingly trustworthy source. Phishing is one of the most common ways in which hackers steal crypto assets. Over the years, there has been a gradual increase in phishing attacks, approximately by 3% in every quarter.
While a VPN might not completely protect you from phishing attacks, it does block certain websites that can be potentially malicious. This acts as an added layer of security for your trading.
Hides crypto activities from you Internet Service Provider (ISP)
Your internet service provider may not know how much bitcoin you bought or sold but they can definitely know which trading platform you use and at what time you logged in. But if you use VPN, your ISP will only see the IP address of the VPN server you use instead of the crypto website. Since VPN encrypts all online data, the ISP can’t manipulate your connection.
Unblocks geo restricted trading sites
There are geo restrictions on crypto trading platforms wherein users from certain countries may not be able to trade in certain altcoins (crypto other than bitcoin) on a particular crypto trading site. This can vary depending upon the platform they use for making transactions. As VPN hides your real IP address, the trading platform cannot know your geo location and hence won’t be able to stop you from trading on the site.
How to choose a VPN?
Now we know how VPN can help us in so many ways to protect our data and maintain privacy but the next step is how to choose the right VPN. The market is flooded with VPNs offering different features and prices, so how do we choose?
While choosing a VPN for crypto, it is important to look for four features that will suit your crypto use and will secure all of your data. Some of these are-
Kill Switch
In case your VPN connection goes down, even just for seconds– your crypto trading data will be exposed which will lead to the tracking of your location and identity. A kill switch is a feature that shuts your internet access when VPN goes down and is a good way to maintain your privacy.
No Logs
A VPN may avoid hackers or government or any other third party from monitoring your online data but the VPN provider may still have logs of your online activities. Hence, it is better to go with a VPN that has a no-logs policy with adequate claims to prove it. (Don’t want anyone selling our data to advertisers now, do we?)
Split Tunneling
It is true that using a VPN can slow your internet connection– and that is something you don’t want especially while crypto trading. Split tunneling is a feature that leaves some traffic out of the VPN tunnel. This means that you use VPN to only encrypt data while crypto trading. Since there will be less data to encrypt for the server, the connection will be stable and smooth.
Base Country of VPN
It is vital to note the country from which the VPN has originated and where it operates. Most of the top VPN providers come from countries without any mass surveillance program like the British Virgin Islands, Switzerland and Panama (where top-rated NordVPN came from).
But it is not wrong to be wary of VPN providers from countries with heavy surveillance programs like the USA or Canada or the UK who can hand over your data if asked by surveillance agencies. This is also the reason why you should not trust a free VPN even if the idea sounds tempting.
Conclusion
It is quite obvious how important a VPN is especially for crypto trading– where security and privacy risks are plenty. It hides your IP address, provides protection from phishing attacks and malware and gives the freedom to trade on platforms in different countries.
So choose wisely and use a VPN that enhances privacy protection and safeguards your data from anyone, even itself.
If you need a VPN for a short while when traveling for example, you can get our top ranked VPN free of charge. NordVPN includes a 30-day money-back guarantee. You will need to pay for the subscription, that’s a fact, but it allows full access for 30 days and then you cancel for a full refund. Their no-questions-asked cancellation policy lives up to its name.
