Transacting money online is convenient, and cryptocurrencies make it even easier.
Using services like PayPal or other payment gateways for online transactions is simple, but one thing that truly matters is your privacy.
Yes, payment gateways collect your personal details like email, address, transaction history, and more.
With cryptocurrencies, your information is secured through encryption. However, even when using cryptocurrencies, your data isn’t completely safe.
This is where a good VPN comes in, helping you stay secure in the online world.
So, What Is a VPN?
VPN stands for Virtual Private Network.
It creates a secure connection between you and your internet service provider, protecting your online activities through tunneling and encryption.
If you’re still unsure how a VPN works, the video below might help clarify things.
https://www.youtube.com/embed/yB1KiboEWC4?end=203
Now that you understand what a VPN does to protect your online activities, let’s dive into how it’s particularly useful in cryptocurrency trading.
Privacy
In today’s digital world, privacy is paramount.
Most internet companies are keen to use your data for their own profit.
Cryptocurrencies offer some level of anonymity because all transactions are protected by cryptography. This means that no third party, other than the sender and receiver, can see who sent money to whom.
However, this doesn’t mean you’re completely anonymous online. You can still be traced by your Internet Service Provider (ISP), trading websites, or even hackers.
If your country has banned cryptocurrency activities, you could be in trouble because authorities may still track you.
To overcome these hurdles, you can simply use a VPN service.
A VPN uses tunneling and encryption to ensure that your privacy isn’t compromised. One of the great features of a VPN is that you can browse the internet from any location worldwide through their servers.
For example, if you’re in China, where cryptocurrency activities are banned, a VPN allows you to participate in cryptocurrency trading by changing your virtual location to a crypto-friendly country like the United States. Your data remains protected through the tunneling and encryption provided by the VPN.
Isn’t that awesome? This is why using a VPN is considered good practice on the internet.
Security
As cryptocurrencies become more popular, they attract more attention from those looking to steal crypto assets.
Every year, cryptocurrency-related hacking attempts and attacks increase. Therefore, it’s important to be aware of some of the hacking techniques used by cybercriminals.
If you’re new to cryptocurrency or not well-versed in internet security, you’re at a higher risk of falling victim to a hacking attack.
A simple solution to protect yourself is to use a VPN.
As mentioned earlier, a VPN secures your browsing data through tunneling and encryption, with encryption being particularly powerful in protecting against phishing attacks and keeping your data safe from prying eyes.
Some VPN providers offer enhanced encryption methods, but they may charge a monthly or yearly fee for these services.
If you’re only concerned about securing your browsing data or changing your virtual location, you can use free VPN services.
Cost Effective
Another advantage of VPN services is that they are significantly cheaper than antivirus software.
A good VPN service that offers encryption and other features typically costs between $2 and $10 per month, while antivirus software can cost upwards of $50.
However, I’m not suggesting that you should use a VPN just because it’s cheaper than antivirus software.
It’s important to understand the distinct roles they play in your online security.
Ideally, use both if you can afford it, or choose the one that best meets your needs.
One Last Thing…
While VPN services are powerful and beneficial, they do have limitations.
If a VPN uses outdated encryption methods, it may be vulnerable to attacks.
Additionally, if you engage in criminal activities, government authorities can potentially extract data from VPN provider servers.
That’s why it’s crucial to use a reputable and trusted VPN service.
Benefits of Using a VPN in Cryptocurrency Trading was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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