Cryptocurrency may be relatively new in the financial market, but it has proved revolutionary as a means of making and receiving payments. Thanks to digital money, more people are taking control of their wealth and being their bank.
But as people adjust the means through which they store their wealth, they also need to improve the way they safeguard it. And a good VPN may help you avoid falling victim to scams.
Why should you safeguard you crypto trading?
Unlike in using an ordinary bank where you don’t need to worry about your money that’s stored there because the bank has already insured it against potential vulnerabilities, in cryptocurrency your digital cash is only as safe as you make it.
That means that your funds can be exposed to hacks, fraud, and security threats if you don’t take adequate measures to protect it. The private keys you use in crypto are your vault, and when someone else accesses them your money is as good as gone.
So how do you ensure your crypto wallet is safe at a time when remaining anonymous online is almost impossible?
Is it safe to leave crypto on an exchange?
People have varying opinions on the matter, but almost all of them agree that it’s a huge mistake to keep your cryptocurrency on exchanges as that leaves a trail linking back to your IP.
There are crypto hardware wallets which provide a secure way for you to store your digital money. At the moment, Ledger Nano S and Trezor are considered by many to be the best hardware wallets for storing cryptocurrencies.
Remaining Anonymous When Trading Online
As earlier mentioned, it’s almost impossible to hide behind the internet. Many people using their laptops at home or in their office think they have total control of their computer, but nothing could be further from the truth.
Rarely are you ever alone when you are browsing the web. Sometimes, there might be an autonomous code that’s monitoring every move you make online. Or it could be a physical entity watching you.
Regardless of who or what is monitoring you, your valuable cryptocurrency is at risk at all times. It’s the reason you need to find a way to remain anonymous to malicious web users when trading online.
Luckily, there’s a way every piece of data you send and receive online is encrypted so that third-party users cannot access that data.
Virtual Private Network (VPN)
Over the last few years, virtual private networks have become increasingly popular, and there’s a good reason for that.
People have become increasingly aware that their governments, as well as other entities, are always spying on them. The realization of just how vulnerable web users are has driven demand for VPNs high.
A VPN provides a considerable amount of privacy and security as one browses the internet.
How a VPN Benefits a Crypto Trader
A reliable VPN service comes with a range of benefits. For instance, the VPN secures all internet connections using 256-bit encryption. Your IP address remains anonymous and can be changed to a variety of countries as desired, which is beneficial if you wish to participate in ICOs but are barred from doing so by your state.
US citizens, for instance, can use a VPN to set their IP address to Hong Kong to take part in an ICO. Some other benefits that crypto traders stand to enjoy include:
The freedom to trade anywhere around the world
Some governments can issue suppressive policies that bar its citizens from accessing certain websites. A high-quality VPN service enables you to unblock sites that, as a crypto trader you want to access and do commerce. For example, Chinese crypto traders have been said to use VPNs to bypass stringent regulations.
Higher protection of sensitive information
When you are trading online, many transactions require you to provide some confidential information like your bank details. That information is collected by the trading platform you are using and needs to be highly secured. A VPN can help you prevent hackers from accessing it and ruining you financially.
Better transaction speeds
In trading, time is currency. That means every minute lost could translate into financial losses. A high-quality VPN leads to faster transactions, which in turn saves or makes you money.
There are also several top VPNs that help make crypto payments not only fast, but also safe. To get a review of one of the top VPNs for this, have a look here.
You get to avoid paying lots of taxes
In some countries, there exist particular and restrictive regulations when it comes to crypto trading. In those countries, the government takes significant fees for every transaction you make using digital money.
A smart way to convert your tokens in without incurring all those tax charges is by using VPN. That’s because you get to trade online anonymously. Keep in mind that Bitcoin and other cryptocurrencies aren’t specific to a country.
You stay safe from legal issues
While your country may allow you to trade in cryptocurrency, you still need to be aware that there are certain checks that your national government institutes on the commerce. For traders that don’t want to keep worrying whether they’ve abided by every little stipulation on crypto trading in their country, using a VPN becomes the obvious choice.
The virtual private network is an essential service for anyone who holds and wishes to trade in cryptocurrency. Without VPN, people who use crypto to send and receive payments leave a trail that is pegged to their IP addresses. But with a reliable VPN, it’s easy to make any transactions online anonymously, which leaves you and your hard earned funds protected.
There are undoubtedly many VPN services you can use for crypto trading, many of which are free to download. Of course, it’s best to use a paid, premium service, given what is at stake, especially for people who wish to trade daily.
The great thing is that most of the top VPN vendors can guarantee affordable, secure, stable and fast service. Some of them even accept payment in the form of cryptocurrency. Before subscribing to any VPN service, it’s advisable to make sure you understand how its features and how it will benefit you as you trade.