VPN for Cryptocurrencies. It sure does sound like a match done well. But is it? Being widely adopted by people all over the globe for various reasons, cryptocurrencies are becoming the new way of payment. But the freshness also raises doubts in terms of the reliability and security of the decentralized money transfer. It’s 2021, and people are no longer unfamiliar with either Cryptocurrencies or VPNs. If you are, however, then let’s do a short recap about cryptocurrencies and VPNs below.
What is Cryptocurrency? Why VPN for Cryptocurrencies?
In loose terms, cryptocurrency is virtual money. It doesn’t have a physical form, but has definite value and can be traded. Cryptocurrencies or crypto for short can be used in the traditional sense of money. It can buy and sell goods/services. However, they are not regulated by any authority/government banks. This means in case of a human error or hacking you can lose everything.
It’s not that cryptocurrencies are completely vulnerable. Crypto runs on blockchain technology, resulting in decentralization, as in no single entity has ownership or control over it. It is a highly secure currency that comes with end-to-end encryption. It technically allows the user complete control over his/her wealth. The blockchain itself is impermeable to hackers. But there are still critical vulnerabilities that can be made use of to launch an attack on your wealth. (Such as the KYC/AML verification, which can be used to lead an attack)
That’s when a VPN is in need.
VPN is, in short, a virtual network that allows you to connect to the internet remotely. This is the major feature that can add an extra layer of security to your crypto activities, whether mining or trading. Such anonymity, which a VPN offers, crypto lacks. That is why VPN for cryptocurrencies is a good match.
Major risks associated with Crypto activities
Cryptocurrencies are decentralized assets. Which works as one of the major attractions for investors. Yet it is not prone to regulations by any central authority. Although crypto boasts of high secrecy, it doesn’t offer complete anonymity. Yes, cryptocurrencies come with high-end-to-end encryption, which ensures that your data won’t be lost in transit. When a trade occurs, it’s verified on the blockchain network via a digital ledger technology (DLT) that stores your data on thousands of different computers. But cryptos aren’t anonymous, but rather pseudonymous, as exchanges now demand a compulsory KYC/AML. It is a critical vulnerability that not only exposes the user’s real name but real-time location too.
Some major risks associated with Cryptocurrencies are:
- Fake crypto trading exchange — Fake crypto trading exchange has become common over time. Firms use tricks to inflate the volume of trading and generate false reports in which over 90% of the transaction are fake. That’s why stick to a reputable and established trading exchange.
- Cryptojacking — It’s when a hacker takes control of your device to mine crypto illegally for criminals. The hacker mines crypto without your knowledge and gains profit while the victim bears loss.
- Double Spending — It’s a scam, where a user uses a single coin to make more than one transaction. Here, scammers use the original coin to make a copy and then use the copy to make transactions while keeping the original one safe.
- Crypto ICO fraud — ICO fraud happens when crypto startups disguise themselves as legitimate, when in reality they are as fake as can be. People who invest in such ICO tend to lose everything invested.
Security tips for crypto activities
Other than a VPN, you can follow the various tips to safeguard your crypto interests.
- Don’t store your wallet on your mobile device — Mobile phones are less secure and easy to lose. Avoid storing large number of coins on your mobile crypto wallet.
- Always avoid public Wi-Fi — Public Wi-Fi while free are unsafe for any monetary transactions. They are more prone to cyberattacks, thus avoid your crypto activities while on a public network.
- Use Two-Factor Authentication — Two factor authenticator (2-FA) adds an extra layer of protection to your wallet. It’s wise to use it.
- Be Vigilant — Always be aware and cautious while surfing the internet. Never click on suspicious links, and block sites with adware. Be prudent enough and research before investing in crypto ICO.
Why do we need VPN for cryptocurrencies?
VPNs hide your IP address and give you great anonymity while online. They work as an extra layer of security for your crypto activities. A crypto transaction without VPN can actually turn risky.
Thus, a VPN is highly recommended to offset certain problems, as it can:
- Easily secure crypto traffic — A VPN encrypts every data packet sent over the internet. Even if a hacker intercepts the data packet midway, there will be no way to decipher its content due to encryption. Cryptocurrencies use a high-end encryption, but your internet connection (public or private) often uses WPA2 for security which has high vulnerability. Thus, with a VPN, you can easily overcome this limitation.
- Explore different trading platforms — Some platforms are geo-restricted. A VPN can easily circumvent said restrictions and censorship. It can help broaden your crypto activities.
- Prevent others from tracking you down — Anonymity is essential when trading crypto, as it is the optimum level of security. Without your location, no hacker can initiate an attack. You have to ensure your anonymity if you want your crypto activities to remain risk-free.
Features of a good VPN
Things that need to be considered before selecting a VPN for cryptocurrencies are as following:
- A Strong encryption — The first thing to be considered before selecting a VPN is its encryption strength. A qualified VPN will be the one with at least AES128 or 256-bit encryption.
- Strict No-Logs policy — VPN often shield others from spying on you, but the provider can still have a log of your online activities. Thus, in order to be fail-safe, choose a VPN with a strict No logs policy.
- Wide array of network servers — A VPN is as good as the amount of servers it can offer. Select one with a wide range of servers to effectively bypass any Geo restrictions.
- Leakproof — Your DNS, IPv6,and WebRTC can easily leak and expose your real location. You will need a tamperproof VPN to overcome this.
- Kill-switch — One of the features essential for crypto traders. In case your VPN connection drops due to any unforeseen events, a kill switch can ensure prevention of data leakage, as it will immediately terminate internet connection upon loss of VPN.
- 24/7 Customer support — A VPN with reliable customer support is a must for your crypto activities, for they can offer solutions to queries immediately.
- No free VPNs — Free VPNs have poorer security, limited encryption strength, tend to be slow, have latency issues and are under no obligation to provide their 100% to safe guarding your connection. All things one ha to avoid in order to be risk-free when accessing crypto online.
An online monetary transaction should have security and privacy. If you are a bit careless, you can be a victim of a malware attack. A VPN is highly recommended in order to circumvent such risks. You can visit my recommended VPN service providers such as ExpressVPN, NordVPN, PIA, etc. to learn more.