Did you know that crypto hackers have stolen an entire number $ 2.99 billion in cyber attacks in 2021?
And despite the tight security surrounding cryptocurrency decentralization, this number continues to grow.
With increasing interest in cryptocurrencies – not only for buying or selling assets but also for making investments, many people are jumping on the crypto dabblers train. And why not, it’s based on blockchain technology that makes it a decentralized marketplace – not controlled by anyone.
But it also comes with its own set of threats, especially related to hockey and security. This is where using VPN for crypto can help there minimizes potential losses and provides additional privacy.
What is crypto trading and the risks associated with it?
In addition to being used as a traditional corporate currency, crypto can also be used for trading. There are several markets in different countries around the world that allow trading in different digital currencies. People can trade anytime and over any time zone, unlike stock markets.
Because crypto is unregulated, it comes with its own set of risks. Because the transactions are immutable and undetectable, it allows hackers to exploit these vulnerabilities.
Therefore, we need to be aware of some security risks when buying crypto-
- Beware of fraudulent crypto trading exchanges that entice people by changing trade size and stats to people who are still new to crypto trading. It is best to stick to reliable platforms when dealing with a volatile market like crypto.
- Hackers can corrupt your machine and install mining software on the system to mine cryptocurrencies from your account and transfer all assets to them. This is called cryptojacking where malware can wipe almost your entire account. Statistics suggest that by 2020 cryptojacking cases went up 28% directing traders to be cautious.
- Hackers make a copy of the coin and use it to make transactions while keeping the original one for themselves. This is called double spending – a potential risk in crypto trading.
Reasons to Use Virtual Private Network (VPN) for crypto
It is a common misconception that crypto provides complete confidentiality to the user. It greatly enhances your privacy but it is still to be found by any entity (hackers, government etc) through your IP address. If your trading platform requests document verification it is almost certain that your identity can be found through the platform.
VPN secures your online data through encryption and protects your identity. It should be noted that even an anonymous VPN cannot provide complete anonymity but through its added benefits you can buy crypto without much hassle. Some of these are—
VPN protects your traffic
You are likely to use a private wifi connection to perform crypto trades that offer almost no security. Hackers can easily find your place and even get their hands on your login credentials!
VPN circulates your online traffic / data and makes it unbelievable. It also hides your IP address and redirects your traffic from another location that may be miles away. This makes it almost impossible for anyone to monitor your online activities. So if I sit in Canada, a VPN may redirect my traffic from the US or Japan or Nepal.
Protection from phishing attacks
Phishing is the sending of fake messages from a source that appears to be unreliable. Phishing is one of the most common ways hackers steal crypto assets. Over the years, there has been a gradual increase in phishing attacks, about 3% in each quarter.
While a VPN may not completely protect you from phishing attacks, it does block some potentially malicious websites. This will be an extra layer of security for your trade.
Hide crypto activity from your Internet Service Provider (ISP)
Your internet service provider may not know how much bitcoin you have bought or sold but will know for sure which trading platform you are using and when to login. you enter. But if you use a VPN, your ISP will only see the IP address of the VPN server you are using instead of the crypto website. Because a VPN surrounds all online data, the ISP cannot handle your connection.
Unlocking geo-limited trading sites
There are geo-restrictions on crypto trading platforms where users from certain countries will not be able to trade certain altcoins (crypto as well as bitcoin) on a particular crypto trading site. This can vary depending on the platform they use to do business. As VPN hides your real IP address, the trading platform cannot know your geo location so it will not 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 full of VPNs offering different features and prices, so how do we choose?
When choosing a VPN for crypto, it’s important to look for four features that fit your crypto usage and ensure that you have all the data. Some of these are—
Just in case your VPN connection goes down, even just for seconds – your crypto trading data will be exposed and this will continue to track your location and identity. Killer conversion is a feature that shuts down your internet access when a VPN goes down and is a great way to maintain your privacy.
VPN can prevent hackers or the government or any other third party from monitoring your online data but the VPN provider may still have logs of your online activity. Therefore, it is best to go with a VPN that has a no – logs policy with appropriate applications for authentication. (You do not want anyone to sell our data to advertisers now, do you?)
It’s true that using a VPN can slow down your internet connection – which is something you don’t particularly want while trading crypto. Shared tunnel is a feature that leaves some traffic out of the VPN tunnel. This means using a VPN to encrypt data while trading crypto. With less data to encrypt for the server, the connection will be stable and smooth.
Country of VPN default
It is important to be aware of where the VPN came from and where it works. Most of the major VPN providers come from countries without a major surveillance program such as the British Virgin Islands, Switzerland and Panama (from which NordVPN at its peak came).
But it is not wrong to be wary of VPN providers from countries with heavy monitoring programs like US or Canada or UK that can provide your data if requested by review agencies. This is also the reason why you should not trust a free VPN even though the idea may seem embarrassing.
The importance of VPN is especially obvious for crypto trading – where security and privacy risks abound. he is hides your IP address, protects against phishing and malware attacks and gives you the freedom to trade on platforms in different countries.
So choose wisely and use a VPN that enhances privacy protection and protects your data from anyone, even himself.
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