Do You Need to Use a VPN for Crypto Transactions? If you’re in a world of crypto, using a VPN makes a lot of sense. First of all, paying for a VPN with cryptocurrencies makes you even more anonymous, hiding your payment data from literally everybody. Secondly, there have been some examples of hackers attacking cryptocurrency trading platforms – and it’s always a good idea to keep your IP address safe from them.
Our online activity can become a gateway for hackers to insert viruses on our computers or steal our data. For crypto users, the thought of having our devices hacked could be devastating. Hackers like to target crypto wallets and exchanges because they know the rewards can be huge, just like when some hackers wiped over $20 million from one bitcoin user’s account. (Similar post: How To Buy Cryptocurrency Using Binance P2P Marketplace)
Why You Absolutely Need a VPN to Avoid Cryptocurrency Theft. Using a VPN is crucial to ensure maximum privacy when buying or trading crypto on the internet. We live in a digital world where more and more economic transactions are carried out online. As cryptocurrencies gain popularity—not only to buy or sell assets but also to make investments—many people are buying cryptocurrency online for the first time.
Here, we will illustrate why you need a VPN if you work with cryptocurrencies so that you do not become a victim of theft.
How Do Crypto Transactions Work?
Cryptocurrency is a revolution in the financial world because it operates without a central authority. Most of us have a bank account and each time we transfer money to a friend the bank verifies the transaction for us. We may enter the details of the beneficiary account but most of the heavy lifting is done by the banks or card issuers like Visa and Mastercard.
With cryptocurrency things are a little different. No central authority verifies payments, but each transaction is added to the blockchain – a public ledger – by miners. These people work to verify payments as a replacement for banks but are rewarded for their hard work. (Similar post: How To Start A Career In Crypto For Beginners In 2022)
This also means there is no need for a bank account and crypto is stored in a wallet, like an online bitcoin wallet. The downside of not having a bank is that your bitcoins are not insured if they are stolen, which is the reason why choosing a stellar wallet provider such as Luno is a must.
Security is a hot topic in the crypto world and having your wallet hacked is why so many crypto users question whether it is necessary to use a VPN to carry out their crypto transactions.
What Is Cryptocurrency Trading, and What Are the Related Risks?
Apart from being used as traditional currency, you can also use cryptocurrencies for trading. There are numerous markets located in different countries worldwide that allow trading in various cryptocurrencies. Unlike stocks, people can trade at any time and time zone.
This is in part due to blockchain technology. Blockchain technology keeps cryptocurrencies in a decentralized market and unregulated by anyone. Unfortunately, this also comes with its own set of risks, particularly related to hacking and security. This is where using a VPN can help reduce potential losses and provide more privacy.
Since cryptocurrencies are unregulated, they come with their own set of risks. Hackers take advantage of the fact that these transactions are irreversible and cannot be tracked. (Similar post: Best Crypto Trading Apps For Beginners In Nigeria)
What Are Some Examples of Crypto Crimes?
Fake crypto trading exchanges mislead people by manipulating trading volume and statistics to bring in people who are still new to crypto trading. It is better to stick with reliable platforms for a volatile market like cryptocurrencies.
Hackers, and even state-sponsored actors, can corrupt your device and install mining software on the system to extract crypto from your account and transfer all funds to themselves. This is known as cryptojacking, in which malware can wipe out almost your entire account. In recent years, social media has become a popular place for cybercriminals to scam users of their crypto and money.
Why use a VPN for cryptocurrency transactions?
The primary reason to use a VPN is to increase security, so it would be logical to think that a VPN can keep you safe when making a crypto transaction. And it would be correct to think this way. Using a VPN will not guarantee 100% security of your bitcoin holdings, but it will add to your defense.
There are specific reasons why this is the case. A VPN will encrypt your data while carrying out an activity, thus, it is harder to intercept your computer with viruses or malware and hack your crypto wallet. Moreover, due to the VPN concealing your IP address, your computer will no longer be connected to any crypto activity you are involved in. This will help you distance your computer or device from crypto involvement, making you less of a target for cybercriminals.
If you’re a crypto enthusiast, there are many reasons why a VPN could turn out to be a very useful tool. Here is the principle that makes a VPN and cryptocurrency transaction such a good pair:
Safety. Cryptocurrency transactions aren’t regulated and aren’t exactly safe. The system is vulnerable to numerous exploits, which can mean trouble to you. Hackers can get your location and your identity by linking your IP address and wallet address. A VPN hides your IP address, allowing you to better hide your identity and wallet from hackers.
Geo-blocks. Some crypto trading platforms like Binance aren’t available in the US, and others like KuCoin are unavailable in China. The bottom line is, that you may run into issues accessing some of them due to geo-blocks imposed for the pages themselves. This means that if you want to keep your assets in several wallets, a VPN can help you out.
Profiling. If a government controls ISPs in your country, it might dabble with surveillance. This means that people looking into cryptocurrency payments could be profiled as drug dealers (as that’s how people purchase them in darknet markets). So, while you may be goody two shoes, you might end up in the register for potential suspects. To avoid this from happening, use a VPN and encrypt your traffic.
How Does a VPN Protect you from Cryptocrimes?
1. A VPN Protects Your Traffic
A common misconception is that cryptocurrencies provide complete anonymity to the user, but that is not entirely true because hackers and foreign governments can track you through public IP addresses.
You are likely using a private Wi-Fi connection for crypto exchanges that offer almost no security. Hackers can easily track your location and even get your login credentials!
Therefore, the VPN for working with cryptocurrencies is a good choice because it protects our data online through encryption and protects our identity. In this case, it is as if our data travels through a tunnel thanks to encryption which protects us from prying eyes.
Thanks to a VPN, we will be able to secure the traffic since it masks our public IP address and hides our original location by redirecting the traffic to another place that could be hundreds of miles away. This makes it almost impossible for anyone to keep track of your online activities.
2. A VPN Offers Protection Against Phishing Attacks
Phishing is the sending of fraudulent messages from a trusted source. It 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% each quarter.
A VPN will also offer us protection against phishing attacks. Although it may only do so partially, it will block certain web pages that can potentially harm us. This acts as an additional layer of security for your trade.
3. A VPN Will Hide Cryptographic Activities From Your ISP
Your internet service provider may not know how much bitcoin you bought or sold, but they can tell what trading platform you use and when you logged in. But if you use a VPN, your ISP will only see the IP address of the VPN server you use instead of the crypto website. Since the VPN encrypts all data online, the ISP cannot manipulate your connection.
4. A VPN Will Unblock Geo-Restricted Crypto Sites
There are geographical restrictions on crypto trading platforms where users from certain countries may not be able to trade certain altcoins (cryptocurrencies other than bitcoin) on a particular exchange.
This may vary depending on the platform they use to transact. As the VPN hides your actual IP address, the trading platform cannot know your geographical location and, therefore, will not be able to prevent you from trading on the site.
Top 5 VPNs for crypto trading in 2022
Sadly, not every VPN is good for crypto. Not all VPNs support cryptocurrency payments, and some are simply not secure enough to protect you against hackers. Therefore, in this article, I’m going to help you pick the best VPNs for crypto trading. I’ll also go into details about what you should look into when choosing one – so you can always pick smart.
1. NordVPN – the best VPN for crypto trading
|Servers/countries:||5500+ servers in 59 countries|
NordVPN is one of the most trustworthy VPNs in the industry, so it’s a perfect service for crypto traders. The top-of-the-line security suite is bound to make your transaction even more private. It also helps that they adhere to a strict no-logs policy, and run RAM-only servers, so making copies of your data logs are just out of the question.
Their operation oversees 5500+ servers in 59 countries. This gives you plenty of locations to choose from so that you could get the best possible performance. It also means that you’ll be able to access any trading platform you want, even if it isn’t officially available in your country.
When you’re connected to Nord’s server network, your connection is encrypted with AES-256-CBC cipher, widely considered to be a gold standard. So, neither your Internet Service provider nor hackers will be able to snoop on what you’re doing online.
For ultimate privacy, you can pay for NordVPN with cryptocurrencies. Currently, they accept Bitcoin, Ethereum, Litecoin, and many others. So, whichever you’re mining or trading, you won’t be restricted to a single coin type.
2. Surfshark – one of the most universal VPNs on the market
|Based in:||British Virgin Islands|
|Servers/countries:||3200+ servers in 95 countries|
While Surfshark is significantly less mainstream VPN, it’s another excellent choice for cryptocurrency tycoons. Especially those who want to remain to be anonymous.
The service itself is based in the British Virgin Islands, an off-the-grid location, in terms of jurisdiction. You don’t have to worry about the Eyes alliances closing in on you. They won’t collect any data on you as indicated in their no-logs policy. The service also relies on RAM-only servers, making them safe even if they’d fall into the hands of law enforcement.
Their technical achievements don’t stop there. You won’t have to worry about IP, DNS, or WebRTC leaks. Nor will you have to wait long times for the pages to load. Surfshark uses state-of-the-art tunneling protocols like WireGuard, that are fast and secure.
The best part is that you can pay for Surfshark using cryptocurrencies. Currently, they support payments via CoinGate or CoinPayments. They support different coins including Bitcoin, Ethereum, and other widely adopted cryptocurrencies.
3. PrivateVPN – cheap VPN for crypto enthusiasts
|Servers/countries:||200 servers in 63 countries|
PrivateVPN is a smaller VPN provider from Sweden. Yet, despite its modest size, it packs a punch. It also should be a go-to pick for cryptocurrency traders and privacy-minded individuals.
While initially, PrivateVPN’s location might be off-putting, as it’s a Fourteen Eyes country, the VPN makes up for it with its no-logs policy. In it, they state that when you’re using the service, no data is stored longer than necessary. This is due to Sweden’s data retention laws.
The service redeems itself with its security suite. For all of its connections, PrivateVPN uses military-grade encryption with modern tunneling protocols. The basics like kill switch and protection against WebRTC leaks are also included.
In total, you’ll be able to choose from 63 countries. So, although their server fleet is on the lower side (only 200+ of them), you should still get pretty good mileage out of the service. This also positively reflects the price, as the providers rent fewer servers and cut down their maintenance expenses.
Speaking of prices, you can also use cryptocurrency to pay for your subscription. At the moment, they only accept Bitcoin payments.
4. IPVanish – a VPN with unlimited connections for a good price
|Servers/countries:||2000 servers in 50 countries|
IPVanish does make your IP vanish, yes, but that’s not all it can do. In fact, even being the last on our list, IPVanish still remains one of the best VPNs for crypto trading in 2021.
It has servers in countries, which makes choosing the best location to access otherwise unavailable crypto trading platforms very easy. On top of that, all of IPVanish’s servers are self-owned, thus decreasing the risk of third-party data breaches.
Talking about risks and security, IPVanish is definitely one of the more secure VPNs on the market. It uses the military grade and by now industry standard AES-256 encryption, and the SHA-512 hash functions for additional authentication processing. On top of that, a part of the encryption is constantly changing due to the perfect forward secrecy. There is a kill switch, too.
Privacy is something that may raise your eyebrows, though. IPVanish is based in the US, a 5 Eyes alliance country. It is no stranger to privacy scandals either – they have provided private user information to the FBI sometime in the past. However, since then IPVanish has implemented a no-logs policy and promises to not retain any identifying data of its clients.
5. AtlasVPN – freemium VPN for crypto trading
|Servers/countries:||750+ servers in 37 countries|
Atlas VPN is also one of the best VPNs for crypto trading. 750 servers in 37 countries maybe not be as many as the top providers have, but there are still more than enough locations to help you access crypto trading platforms that may otherwise be unavailable.
In terms of security, like most best VPNs, Atlas VPN uses the AES-256 cipher. No encryption problems should occur with this one. For additional security, Atlas VPN also has a decently functioning kill switch to prevent data leaks in case a secure connection is lost. Speed and performance-wise, the nicely implemented WireGuard protocol does its job well.
As for privacy, Atlas VPN does a good job of keeping its clients anonymous. It doesn’t ask for your personal details when creating the account. It also has a no-logs policy which states that they don’t collect any private information. However, it is based in the US, which is a 5 Eyes country, which may be a deal-breaker for some. AtlasVPN also has a free version with an option to upgrade to a paid subscription.