Why You Need a VPN for Crypto Trading
If you’re involved in crypto trading, you probably expect complete privacy for your transactions thanks to the Blockchain-based security model. Well, don’t be so sure. Yes, Bitcoin, Ethereum, and other popular cryptocurrencies ensure some level of safety, yet it is far from perfect. In fact, in 2021 alone, losses of digital funds due to crypto-related crimes increased by nearly 80%….
If you’re involved in crypto trading, you probably expect complete privacy for your transactions thanks to the Blockchain-based security model. Well, don’t be so sure.
Yes, Bitcoin, Ethereum, and other popular cryptocurrencies ensure some level of safety, yet it is far from perfect. In fact, in 2021 alone, losses of digital funds due to crypto-related crimes increased by nearly 80%. Scams, hijacking, and fake exchange platforms may compromise your online wallet’s security and result in personal data exposure or even actual theft.
Luckily, a trustworthy virtual private network (VPN) service can help you handle this challenge by providing an additional security layer for your online trading activities. Keep reading this article to find out the main reasons to use a VPN for crypto.
The privacy pitfalls of trading cryptocurrencies
When using a cryptocurrency exchange platform to buy or sell digital assets, you may face various cybersecurity threats striving to scam you, compromise your private information, or steal your funds. At the same time, unlike traditional stock exchanges, crypto-related platforms may lack some important protection levels. As a result, cyber attacks and social engineering techniques aimed at crypto traders are becoming increasingly common. According to the latest surveys, the amount of crypto stolen so far is nearly $45 billion.
Here are the most common crypto-related challenges to look out for.
Lack of anonymity
Unfortunately, despite the popular opinion that cryptocurrency exchanges are completely private, this is not quite true. In fact, while crypto transactions are nearly impossible to be linked to a specific user, traders’ anonymity can still be compromised.
An online tracker or ad agency can easily detect your identity, especially if the exchange platform requires extra verification levels like Know Your Customer (KYC) and Anti Money Laundering (AML). These techniques verify new users’ IDs and prevent potential fraud. However, they also have a detrimental effect on your online privacy.
Fake crypto exchange platforms
According to a recent Forbes survey, more than half of all crypto trading volume is fake. How come? Well, the thing is that numerous exchange platforms aren’t legitimate. Many users, especially crypto trading beginners, ignore the red flags indicating fake and untrustworthy exchanges. Here are some worrying signs you should look out for:
- Too-good-to-be-true returns
- Offers of free or non-existent coins
- Cloning of legitimate platforms
- Malicious mobile apps
Crypto hijacking, also known as “cryptojacking”, is one of the most widespread crypto crimes. It involves the use of a victim’s device power to mine cryptocurrencies. Since generating crypto is a challenging and energy-consuming process, cybercriminals often turn to cryptojacking to save on expensive hardware and electricity bills. Unsurprisingly, the cases of this cyber threat have increased by 269% this year.
Luckily, there’s a way out. A VPN can protect your identity, enhance your privacy, and help you stay away from various cyber risks when trading crypto.
Main reasons to consider VPN for trading crypto
A VPN is a service providing reliable encryption and spoofing your IP address. It hides your identity from snoopers, hackers, and nosy corporations, making your online presence invisible and nearly impossible to track. Here are several key reasons why it’s worth using a VPN for crypto trading.
1. Reliable encryption
Let’s say you need to make a crypto transaction while being connected to a WiFi hotspot in a hotel, airport, or other public places. What could go wrong? Everything. Both WPA2 and WPA3 protocols, used by most WiFi networks, are vulnerable to cyber attacks. Public hotspots are particularly risky since they are often entirely unprotected. For example, hackers may steal your credentials, wallet keys, or digital funds using man-in-the-middle attacks, fake networks, or session hijacking.
You can prevent those risks by shielding yourself with a VPN. It connects your device to a remote server and runs your data through an encrypted tunnel. As a result, your crypto trading sessions will be invisible to the prying eyes of packet sniffers.
2. Protection from crypto phishing attacks
As mentioned above, there are numerous potential threats to your online trading activities. Anything, from a malicious link to a pop-up ad infected with malware, may put your credentials and digital funds at enormous risk. One of the most widespread dangers is crypto phishing. This social engineering technique allows scammers to compromise your security and steal confidential information using harmful links or attachments.
For instance, take a look at the email below. It encourages you to resolve a problem with your transaction immediately. Looks a bit worrying, right? In fact, once you get hooked and click on the provided link, your credentials will be stolen by hackers.
Luckily, a reliable VPN service can prevent such an outcome. For example, VeePN offers a powerful NetGuard feature, which helps users block malicious websites, dangerous links, and crypto-related scams.
3. Complete privacy
Did you know that every single browsing session is tracked by your Internet service provider (ISP)? Whether you enter Binance to check the current Bitcoin price or log into your crypto app account, they will know what you’re up to. Every online activity goes through the ISP’s network, even though they cannot monitor the transactions themselves.
And that’s another good reason to use a VPN to trade cryptocurrency. With its help, you can hide your activities from your ISP and make your browsing experience truly private. On top of that, a VPN will help you avoid Internet throttling, used by ISPs to adopt your network traffic and slow down its performance.
4. Hidden IP address
How much can your IP address tell about you? Pretty much, to say the least. In particular, it reveals your location, ZIP code, and Internet service provider’s name. And most likely, the Blockchain platform you’re using links your IP to your public wallet address. As a result, if this platform experiences a data breach, this confidential information will fall into the hacker’s hands.
The consequences can be even more frustrating. Malicious actors may sell users’ IPs on the dark web, use them for DDoS attacks, or spread malware on your device. That is why it’s better to hide your IP address when running nodes on the Blockchain network. And you can easily achieve it with a VPN. Such a tool will hide your IP and alter your location, reroute your traffic to a remote server, and make your online presence untraceable.
5. Access to international markets
Cryptocurrency exchanges are legal and available in most parts of the world. However, even the most popular crypto platforms, including Binance, Coinbase, and Crypto.com, may be difficult to access in countries with a high level of Internet censorship. In particular, the use of Bitcoin is partly or fully limited in China, India, Egypt, Turkey, and more. However, in most cases, cryptos are illegal as a means of payment, yet allowed for trading and storage.
At the same time, many cryptocurrency exchanges may be unavailable in certain regions due to geographical limitations. This may be applied either to a specific market or a coin disallowed for international use. It’s particularly inconvenient for crypto traders who travel to other countries where the needed exchanges may not be available. For instance, US-based traders cannot access Binance from Hawaii, New York, Texas, and Vermont.
However, you can address those limitations with a VPN. For instance, VeePN provides more than 2500 servers across 89 locations, so you can choose the one that suits you best and trade crypto on the desired exchange platform when traveling.
VeePN is the VPN service not intended to be used for conducting any illegal acts. Please remember to check whether there are any restrictions in your particular country before doing anything potentially questionable. Please be informed that if some action is illegal without using a VPN, it will also be illegal with its use.
The essential features of a crypto VPN
Unfortunately, not all VPN services are equally effective for trading crypto without compromising your online security. In particular, it’s worth noting that free VPN tools are often not powerful enough to protect your transactions. Furthermore, it may turn out that they pose a threat to your safety. So when choosing a VPN for crypto, make sure it’s not a fake tool.
But how to pick a VPN that will make your crypto trading activities risk-free? Let’s take a closer look at the most critical features.
The chosen VPN tool should be able to protect your traffic from potential interference. AES-256 is the most powerful encryption standard that shields you from hackers, online snoopers, and data leaks. VeePN also provides an additional security layer with WireGuard, OpenVPN, and IKEv2 protocols. As a result, malicious actors will have no chance to compromise your crypto transaction, even if you’re using public WiFi.
What if your VPN connection suddenly fails during your crypto transaction? In this case, your data is left unprotected and can be tracked or even stolen right away. Not cool, right? That is why you need the Kill Switch feature. It makes your connection completely secure at all times by blocking Internet access to your device once the VPN connection is down.
No Logs policy
Even if your ISP, ad agencies, and censors won’t know what you’re up to when surfing the web, you might still be tracked by your VPN service provider. Untrustworthy VPNs can collect your data and sell it to third parties. So when picking a VPN tool, prioritize the one that adheres to transparent No logs policy.
How to use a VPN to trade cryptocurrency?
Once you’ve chosen a credible service provider, follow these simple steps to start using a VPN for crypto trading.
- Sign up for a VPN service. For instance, VeePN offers several pricing plans for users with various goals and needs.
- Download and install a VPN app. Good VPN providers have versions for any operating system, including Windows, macOS, Linux, iOS, and Android.
- Pick an appropriate server. This way, you will change your IP address and secure your trading activities.
- Turn on your VPN. Now, you can head to the crypto exchange website or application and buy or sell cryptocurrencies without compromising your privacy.
Protect your crypto transactions with VeePN
Despite a common misconception, trading cryptocurrencies is neither anonymous nor completely secure. Numerous risks are lurking out there, from crypto phishing attacks to fake exchange platforms. However, with a virtual private network watching your back, you can safeguard your transactions and make your digital identity undetectable.
Need a powerful tool to keep your crypto assets safe and sound? Check out VeePN! It’s a top-rated VPN solution that provides all the necessary features for your online security and privacy. Thanks to a 30-day money-back guarantee, you can try it out and make sure that no data leaks and third-party trackers bother you with VeePN turned on.
Should I use VPN for cryptocurrency transactions?
Yes! A VPN service will make your crypto trading experiences much more secure, private, and seamless. Thanks to end-to-end encryption and powerful security features, a VPN will help you avoid common crypto-related threats, such as phishing, cryptojacking, man-in-the-middle attacks, and so on. For more information, read this article.
What VPN to use for crypto?
To protect your transactions, it’s worth opting for a credible VPN service with top-grade functionality, such as VeePN. It offers numerous handy features, including NetGuard and Kill Switch, to stay safe and anonymous when trading crypto. Besides, VeePN doesn’t keep logs about users, provides reliable support, and offers several pricing plans to choose from.
How do I get a VPN for crypto
To start using a VPN for stock trading or crypto trading, follow these simple steps:
- Sign up for VeePN
- Download and install an app for your device
- Pick an appropriate server
- Turn on your VPN connection
- Buy or sell Bitcoin, Ethereum, and other cryptocurrencies while staying anonymous and safe