The idea that our devices could be compromised is terrifying for cryptocurrency users. Cybercriminals may use your online behaviour as a gateway to infect our computers with viruses or obtain our data. Because they know the rewards can be enormous—as demonstrated by the time some hackers deleted over $20 million from a single bitcoin user’s account—hackers frequently target cryptocurrency wallets and exchanges.
Today’s cryptocurrency users can be found browsing the web to make sure they are staying up to date on security measures or explaining to their friends why bitcoin is the way of the future over dinner. If a VPN is required in order to conduct cryptocurrency transactions is one question that not enough people are asking. The solution is provided here.
How Do Cryptocurrency Transactions Work?
Because cryptocurrency lacks a central authority, it is a revolution in the financial industry. The majority of us have bank accounts, and the banks validate our transactions whenever we send money to friends. While we may input the beneficiary account details, banks and credit card companies like Visa and Mastercard handle the majority of the work.
The world of cryptocurrencies is a little different. Each transaction is added to the blockchain, a public ledger, by miners; no central authority verifies payments. In place of banks, these individuals verify payments, and they are compensated for their labor of love.
This implies that cryptocurrency is kept in a wallet, such as an online bitcoin wallet, and that a bank account is not required. Your bitcoins are not insured if they are stolen if you do not have a bank, which is why choosing a reputable wallet provider like Luno is crucial.
Security is a major concern when it comes to cryptocurrencies. Many users wonder if using a VPN is really necessary in order to conduct cryptocurrency transactions because of the possibility of having your wallet compromised.
What Is a VPN?
It is critical to understand what a VPN is in order to respond to that query. Virtual Private Networks, or VPNs, are one method of enhancing security to networks that might otherwise be deemed insecure, like open WiFi networks and hotspots that are accessible to all users. Although more and more common people are using them, businesses handling personal data typically use them to protect their customers.
By itself, the VPN substitutes a fake IP address from a different location for the user’s original one. Because of this, depending on their VPN provider, users of a VPN may be based in London but appear to be in any other nation on the planet. VPNs can be bought online by a host of vendors and most purchases result in a subscription for a year or two, with the possibility for renewal.
Why Do More People Utilize VPNs?
Nowadays, protecting personal data and maintaining online security are tasks that all people, not just large corporations, must master. Hackers can target any Tom, Dick, or Harry in order to steal confidential data and perpetrate crimes, particularly stealing money from gullible people. This has contributed to the rise in the number of VPN users currently in use.
Some people choose to use a VPN for reasons other than the increased security. There is a benefit in having a VPN so users can access TV programmes or online services from one country when based in another one. For example, Netflix’s offerings change depending upon location and having a VPN allows you to increase the number of shows and films available. Similarly, streaming services in the UK are online available for those in the UK, but can often be accessed from abroad with the correct VPN.
Do Cryptocurrency Transactions Require the Use of a VPN?
Since enhancing security is the main benefit of using a VPN, it stands to reason that a VPN would protect you when transacting with cryptocurrencies. And this is the right way to think. Although it will not ensure complete security, using a VPN will strengthen your defenses.
There are several reasons why this is the case. A VPN increases the difficulty of viruses or malware invading your computer and compromising your cryptocurrency wallet by encrypting your data while you are using it. Additionally, because the VPN will be hiding your IP address, your computer will no longer be connected to any cryptocurrency activity you are involved in. You will become less of a target for cybercriminals by doing this and removing your computer or device from any cryptocurrency activity.
Are Free VPNs Just as Good?
While there are some good and helpful free VPNs available, you should think about getting a more advanced VPN if you want to secure your data and improve your online privacy.
This is due to the fact that some of those free VPN services are actually making money off of the information you believe they are keeping private. Since some of them are unreliable, it is wise to invest in a better VPN to ensure that using one will not increase the risk to your cryptocurrency holdings. The majority of premium VPNs are reasonably priced and well worth the little investment, which is good news.
Additional Crypto-Related Precautions
A VPN will support your efforts if you want to handle your cryptocurrency wallet or conduct bitcoin transactions in a safer manner. Nevertheless, using a VPN alone will not keep you safe. The following are some of the best suggestions for safeguarding your cryptocurrency stash:
- Select reputable companies with an outstanding safety record that offer products or services. This is the reason you should weigh your options and take your time when choosing an exchange and wallet provider.
- Do not discuss your cryptocurrency holdings in public or on social media. It might turn you into a target.
- Enable two-factor authentication when possible
- Keep privacy keys and passwords safe and preferably not in a digital form but in a safe.
The bottom line is that a VPN will help you keep your hard-earned crypto safe, but it is not the only thing you need to be doing to protect your investment.
