Protecting your money and maintaining anonymity would be the common concerns you’ll have before you decide to try Bitcoin trading. Of course, the decentralized nature of any cryptocurrency, including Bitcoin, helps ensure a degree of anonymity.
Also, most cryptocurrency exchanges use an SSL certificate, as well as end-to-end encryption, to secure your financial transactions. Nevertheless, the growing number of cryptocurrency scams across the globe has been making people skeptical about investing in Bitcoin.
That’s where a VPN (Virtual Private Network) steps into the picture. It provides you with a more secure internet connection to conduct cryptocurrency transactions without worrying about being hacked or traced.
In this blog, we’ll explore the broad spectrum of benefits that VPNs offer to Bitcoin traders. But let’s first get a clearer picture of cryptocurrency scams and find out whether they’re as serious as they appear.
How Safe Is Cryptocurrency Trading?
Cryptocurrencies, such as Bitcoin and Ethereum, boast various features that help them attract serious investors and enthusiasts alike. To begin with, the decentralization of cryptocurrency makes it possible to maintain anonymity during transactions.
Also, it gives consumers more control over how, when, and where they invest their hard-earned money. The low barriers to entry combined with the high valuation of Bitcoin make cryptocurrency trading a steal deal.
But if you’ve ever trodden the path of Bitcoin trading, you’d know that it isn’t a bed of roses. The anonymous nature of cryptocurrency transactions presents a goldmine of opportunities for scammers and hackers.
Leaked wallet passwords, fake cryptocurrency apps, overhyped cryptocurrencies, and pump and dump schemes - it’s just a glimpse of cryptocurrency scams you’ll likely witness. Hackers can even use cryptojacking to illegally mine Bitcoin on your trading device.
Worse still, the anonymity of crypto trading makes the transactions untraceable. In such scenarios, you’ll likely have to seek the help of financial experts for crypto scam recovery. It’s a time-consuming and laborious process that may not always be 100% successful.
Also, it’s worth noting that most cryptocurrency transactions are only pseudonymous. If hackers access your digital address, they can find the associated IP address as well. That would allow them to gain access to your personal location and other details. It’ll jeopardize your safety and make you susceptible to more Bitcoin scams.
Moreover, many cryptocurrency exchanges now require you to fill up KYC (Know Your Customer) and AML (Anti-Money Laundering) forms. It makes your identity readily accessible, thus jeopardizing your privacy and safety even further.
Is VPN The Right Solution To Crypto Scams?
Here’s the thing - nearly 7,000 people in the U.S. lost more than $80 million in cryptocurrency between October 2020 and May 2021. Representing a year-over-year increase of 1,000%, it’s an alarming statistic for new and seasoned cryptocurrency investors.
That has compelled consumers to look for a way to safeguard their Bitcoin transactions. One of the easiest and most effective ways of achieving this is to use a VPN while trading. Unlike a regular internet connection, a VPN establishes an encrypted pathway between your device and internet servers.
Simply put, it helps disguise your IP address and routes all internet traffic to your device through a secure virtual tunnel. Think of it as a proxy server that helps hide your location and identity, thus letting you maintain complete anonymity.
Here are the top benefits of using a VPN for Bitcoin trading:
1. Complete Privacy
Establishing an encrypted virtual pathway for connecting to the internet makes a VPN connection extremely private. It helps protect your actual location and IP address, which, in turn, lets you remain anonymous on any cryptocurrency exchange / app.
Most modern VPNs also come with advanced features, such as “No Logs” and “Kill Switch”. The “Kill Switch” feature ensures that your trading device (laptop, tablet, or smartphone) always uses the VPN connection. Whenever the VPN is disrupted, your device is automatically disconnected and resumes service only after the VPN connection is restored.
Likewise, the “No Logs” feature ensures that no one can access your browsing and download history. While this feature costs a little extra, the expense is justified by the assurance of total anonymity it offers.
2. Easy Access To Public WiFi
When you use a VPN, it becomes easier for you to connect to any public WiFi network to access your digital wallet. That’s crucial for busy traders who are always on the move. It protects your device from malware and data leakage while you’re using public WiFi.
3. Protection From Cryptojacking
A premium VPN connection masks your device’s IP address, thus protecting it from cryptojacking malware. Even if your device falls prey to such an attack, a VPN will render its protocols inert, thus shielding you from its adverse effects.
4. Overcoming Geo-Restrictions
Even if Bitcoin trading isn’t illegal in your country, some cryptocurrency exchanges and websites may not be accessible. In such cases, using a VPN masks your location data, thus helping you trade like a local in any country. The best part is that you won’t leave a trail of your transactions.
The Bottom Line On Bitcoin Trading With A Very Useful VPN
Whether you are curious about the world of Bitcoin trading or want to become an expert Bitcoin investor, it’s always a good idea to use a VPN. It provides anonymity and security, preventing you from falling prey to scammers. Also, it helps you expand your trading beyond geographic boundaries.
