Crypto trading continues to hit the mainstream as more across the world become familiar with digital currencies and get involved with buying, selling, and trading.
In November 2021, a Pew Research study revealed nearly 9/10 Americans had heard at least a little bit about cryptocurrencies like Bitcoin. About 16% admitted they had invested, traded, or used cryptocurrency. The results differed starkly from a 2015 poll where just 48% said they’d heard of Bitcoin to any degree.
Many crypto investors and traders have privacy concerns, especially since public blockchains mean any transaction can be reviewed by just about anyone.
Some wonder if the use of a VPN (virtual private network) offers any added benefits or protection while trading.
While the use of a VPN is not foolproof, it does offer crypto traders additional privacy, encrypts all trading data, and provides a better overall trading experience.
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VPN Usage Grows As More Internet Users Understand The Importance Of Good Privacy
The popularity of VPNs continues to surge as they become more accessible to the average Internet user. 2022 research shows about 30% of VPN users rely on the tool for personal reasons, while about 24% use them for business.
VPNs are often popular in countries with severe Internet restrictions. For example, statistics show about 55% of all Internet users in Indonesia rely on a VPN. Unsurprisingly, VPN usage surged during the COVID-19 pandemic when many across the world were locked down.
What are some of the benefits of using a VPN while trading crypto? First, VPNs help keep a user’s Internet traffic secure and can help thwart phishing attacks from thieves looking to steal virtual currency.
While it’s never smart to trade crypto on public Internet networks, using a VPN does encrypt traffic so security is enhanced (the same is true on your home network). Some thieves even go the distance to set up a fake network to try and monitor traffic on computers and attempt to piece together enough info from a trader to steal trade platform credentials. Some VPNs come equipped with a blocklist that automatically prevents a user from clicking on a phishing website, a useful tool as a good number of these fraudulent sites often have some mention of cryptocurrency.
VPNs also help Internet users change their IP address. Why is this important? Because a node is able to see a user’s real IP. As just about anyone can set up and run a node, this means the wrong people could then make note of a person’s IP address and any crypto-related transactions, provided they’re operating a node that keeps records.
Less Personal Information On The Internet Is Always Better, Especially If Large Amounts Of Money Are At Stake
Additionally, an IP address makes a lot of information, like an Internet user’s country, city, and zip code, clear to anyone curious. Leaked IP addresses can be used by cybercriminals for nefarious activities. Using a VPN to hide a real IP address is a smart move while trading cryptocurrency. Transactions will be associated with the VPN server’s IP, helping the actual Internet user lay low while they’re trading.
The many benefits of using a VPN while crypto trading often lead people to assume that any option will do. This isn’t the case. Any crypto user interested in a VPN should carefully study their options and find a service with a few key features.
Good VPNs guarantee obfuscation. This makes VPN traffic look normal and is essential for getting around VPN blocks. Another feature of a good VPN is the inclusion of a kill switch, which shuts off Internet access if the VPN goes down.
Connection drop for a VPN could mean critical trade data becomes exposed if the Internet connection is still active. Finally, good VPNs do not keep logs and are willing to prove so. A no-log policy means a VPN provider does not store or record any transmitted info, meaning Internet activity is safe from third parties or advertisers looking to cash in on search histories.
Overall, using a VPN for crypto trading is an extremely smart move to help lay low while crypto trading and mitigate any potential security risks. While it’s not entirely foolproof, the use of a good VPN will help protect an Internet user’s identity.