How Bitcoin Investors Can Ensure Extra Security and Privacy When Trading Crypto Assets Using VPNs
Online security is one of the largest problems that internet users are facing today, and this has been an issue for years now. While an average user has the potential to get exposed to online threats such as malware or hackers, the situation may be even worse for cryptocurrency traders.
Ever since cryptocurrencies exploded in late 2017, hackers have been extremely crypto-oriented, often trying to steal users' funds, whether from their wallets, exchanges or through phishing scams and crypto jacking. It seems like every day brings new reports of hacking attacks and theft, and sometimes, the stolen funds can include millions of dollars worth of Bitcoin and other coins.
Not only that, but crypto traders who wish to stay anonymous cannot actually do that without additional protection, as transactions can be traced and private wallet addresses can be connected to traders' identities. While almost all large exchanges now have strict KYC policies, this does not mean that traders should give up on trying to protect their identities, and VPN services are the right way to go.
What Is VPN?
VPN stands for Virtual Private Network, and it is a name we use for privacy tools that can provide users with online anonymity, security, and privacy during their daily browsing sessions. They are perfect tools for data protection which is highly sought after by governments and their agencies, our own ISPs, as well as hackers who tend to sell it for profit or misuse it in other ways.
This technology became increasingly popular with individual users who wish to protect themselves online. VPN can protect users' traffic from view by shielding it with a secure tunnel through which their data can flow uninterrupted. In addition, they encrypt this data so that it wouldn't get exposed in case of a data leak.
Finally, VPNs can provide users with anonymity by allowing them to connect to private servers that use their own IP addresses. By connecting to one such server — many of which are scattered around the world — users receive a new IP address which records their online actions. Upon leaving the server, the IP address is given to another user, and there is no connection to the original user whatsoever.
Why You Should Use VPN During Crypto Trading
Now that we have covered what VPN is and what does it do, the next logical question is how it can impact crypto trading?
As mentioned, cryptocurrencies have drawn a lot of attention to themselves in recent years. While they are still far from going mainstream, the number of traders and investors around the world is constantly growing. In addition, cryptos are already accepted by a number of online services, while some countries such as Japan and South Korea already treat them as an official form of money. This has created an opportunity for hackers to steal funds from those who do not know how to protect themselves adequately.
Because of this, security experts often suggest the use of VPNs when dealing with cryptos, and especially while using the crypto wallets. Both of these services use strong encryption, but there is a serious lack of protection when it comes to shielding transaction. This is why VPN needs to be included in the process, as all traffic gets encrypted and shielded, as discussed before.
This can also be useful for crypto traders who live in countries that do not support cryptocurrencies at this time. Changing the virtual location can help a lot in these situations. Another important use case is trading cryptocurrencies while traveling.
Travelers often depend on public Wi-Fi in order to gain access to the internet and do their trading. However, public hotspots are extremely dangerous as you never know who else uses them. They can often be a hunting ground for nearby hackers who can gain access to their victims' devices this way, which can lead to information theft or malware infections. VPNs can help with this as well, by shielding the traffic and securing the device.
Most of them have excellent anti-malware security, which can protect the user from a lot of trouble.
In the end, crypto trading can be a valuable source of income, but only if traders take precautions in order to stay safe. Otherwise, they can lose their funds, have their privacy exposed, or face some other form of danger. VPNs can help minimize the risk, which is why it is advisable to get a proper VPN service and protect all of your devices in a single move.