Today, everyone should have heard about Bitcoin. Although people might not have a deep understanding of the topic, they do know it is a type of currency well-known for being highly volatile. In layman’s terms, people can hit it big by venturing into the field of Bitcoins. However, one has to accept there are certain risks associated with the currency. Therefore, people often wonder if they can protect Bitcoins with a VPN.
We are not only talking about digital theft. As many know, Bitcoin is virtual, i.e., it solely exists on the internet. Hence, Bitcoins are prone to all the issues plaguing the web. Thus, when you talk about virtual currency, you also exert effort into learning how to protect your Bitcoins. Consequently, what tech is best at protecting against the treacherous internet, other than VPNs (virtual private networks)?
What is a Bitcoin?
First, readers have to know more about cryptocurrencies. A cryptocurrency represents digital money that doesn’t rely on centralized banks to verify transactions. Instead, it is a peer-to-peer transaction system that can enable digital money transfers globally. However, it exists purely on the web, in the form of digital entries to an online database. Since it relies on end-to-end encryption to verify said transfers, we call it cryptocurrency. Now, back to Bitcoin, it is the first-ever digital currency to be mined and circulated globally.
Founded in 2009, it is a significant example of a cryptocurrency. It is also the most valuable, with an all-time high of $68000 for a single one. Bitcoins have many names, virtual money, digital currency, crypto money, etc. It has real value as users can buy commodities with Bitcoins, including VPN subscriptions. However, alternatively, many detest it and have altogether banned its use. But what is it that makes Bitcoin so unique? Why is such a hefty price tag attached to something purely virtual? Is it a simple sheep mentality, or is there something of value?
How do Bitcoins work?
Let us glean how Bitcoins work. As we already know, cryptocurrencies run on a decentralized public ledger called a blockchain that records all related transactions. Bitcoins are the same. They run on blockchain technology. They get created through a process known as mining, which involves using computers to solve complicated mathematical problems. Then these coins are sold, bought, and traded through different brokerages using digital wallets. Owning a Bitcoin isn’t a tangible endeavor. What you own is a digital key that allows you to record subsequent transactions.
Although still immature, blockchain technology has potential growth, hence the bloated valuation. Also, as it gets traded globally, it adheres to the market supply and demand. That is what provides Bitcoin its worth. But since it is all merely digital, the threats are substantial too. Thus, there is a need to protect these transactions that are already sufficiently secure.
How does a VPN protect my Bitcoins?
VPNs have been around for ages, and they are adept at digital security. Bitcoin, being virtual, can benefit from VPN protection. You don’t need to do anything special, only use a VPN as you would normally. Now, given below are a few reasons for using VPNs to shield Bitcoins:
1. VPNs are good at encryption
A VPN uses military-grade encryption to protect the data traffic passing through its network. As a result, outsiders can’t learn what you are doing online. Hence, you can trade without worries using a VPN, with no one being the wiser. Trading on an unsecured network often invites trouble, especially if the trade involves this cryptocurrency. If you are somehow trading Bitcoin on an open public Wi-Fi, perchance, you are already in financial danger. Using a VPN will thoroughly counter it. With VPN encryption, there is no chance of packet sniffing or data monitoring.
2. A VPN shields your Bitcoins from phishing
Phishing is a modern-day bane for the unsuspecting and gullible consumer. Although, capable individuals also fall prey to an organized phishing attempt. As such, it is a critical threat to your Bitcoin investment. However, how does it take place? By identifying the target. But what if a malicious user can’t figure out who to zero in on? A VPN can take care of it by keeping you hidden behind a remote VPN server. Also, VPN providers have a blocklist that prevents access to potential phishing websites.
3. VPNs keep your trading a secret
If we were in an ideal world, we could go to a trading platform, sell some BTC, buy some ETH and log out without anyone else knowing. But alas, nothing remains hidden on the internet. Using packet sniffing or data mining; A person can analyze your traffic to figure out your digital footsteps. However, why go so far when we already have an ISP (Internet Service Provider) that knows anything you do online?
Now, we are not saying that the ISP is interested in your trade strategies. But it surely wants to know how you consume your data to plan. Thus, an ISP can employ data-throttling to discourage Bitcoin trading. However, a VPN can easily prevent such an occurrence. Since it initiates a VPN tunnel between the client and the server, a third party can never be privy to what goes inside the tunnel.
4. VPNs hide your real location
Crypto trading platforms record your real IP addresses. They then bind your IP with your wallet. It in itself isn’t an issue. However, what if the website suffers from a sudden data breach and the hackers get away with your IP address. As we have already conveyed, there are numerous things one can do with an IP address. To prevent future trouble, we recommend using a VPN to spoof your real IP.
5. You can access geo-blocked coins and trading sites
Funnily enough, geo-unblocking is pretty popular with Bitcoin too. There are numerous trading platforms that are of quality but limited to a particular area. A VPN can help users invade such regions by bypassing geo-blocks completely. Hence, users can employ VPNs to fool websites into thinking that the user belongs to a specific region.
6. It helps you bypass firewalls
Sometimes some places discourage Bitcoin trading. However, many want to view the latest information regarding their trades. It creates an impasse. However, a VPN can help you. These institutes often use firewalls to blacklist anything related to Bitcoins or cryptocurrencies in general. But a VPN with an excellent obfuscation can easily prove worth the money as it handles bypassing blocks and bringing users the desired results. A VPN is an unparalleled appendage when it comes to digital wellbeing. If you want to protect your Bitcoins, we surely suggest using VPN services.