Introduction
Privacy is essential when it comes to crypto trading. And when you’re crypto trading, a VPN (Virtual Private Network) comes in handy. VPNs are the most effective tools for privacy and anonymity that help you to buy and sell crypto safely and securely no matter where you are. In this guide, we’ll talk about the most common privacy concerns regarding crypto trading and the most crucial factors you need to consider when choosing a VPN for crypto. We will also detail how a VPN is necessary when considering anonymizing crypto trading. So, without further ado, let’s get into it.
What Are Some Of The Privacy Concerns When Trading Crypto?
Various privacy concerns arise out of trading crypto. Let’s go over the major ones:
1) Public Ledger Transparency
Most crypto currencies operate on public ledgers, which means that the transactions are recorded and can be viewed by anyone. While wallet addresses are not linked to real-world identities, it is still possible to trace these transactions and identify patterns to link these addresses to individuals potentially.
2) Identity Verification
Some trading platforms require users to go through Know Your Customer (KYC) verification, which includes providing personal information like identification, proof of address, and more. It can be vulnerable to data breaches and misuse if it gets into the wrong hands. Many crypto exchanges also collect data like device information, transaction history, and IP addresses. This data can potentially be used to track and profile users. Online trackers and ad agencies can easily detect your identity, especially if it requires extra verification like KYC and AML (Anti Money Laundering)
3) Hacks & Data Breaches
Cryptocurrency exchanges and wallets are prone to hacks and data breaches. When the exchange is compromised, sensitive user information, including email addresses, passwords, and personal data, can be exposed. Malicious actors can use phishing emails and other social engineering tactics to deceive and trick users into revealing their private keys and login credentials, which ends up compromising their privacy and security.
4) Crypto Hijacking
Crypto Hijacking is a widespread crypto crime where a person’s device gets used without their knowledge to mine cryptocurrencies. Since mining crypto requires a lot of money and resources, cybercriminals use this method to save money. Forbes also reported that more than half of the Bitcoin trading volume is fake. Many crypto exchange platforms are fake, and users who are beginners in crypto trading may not be able to determine the red flags that indicate untrustworthy exchanges. Here are some significant signs you’re on a fake crypto exchange platform:
- Returns that look too good to be true.
- Offering free coins.
- Duplicating legitimate platforms.
- Malicious mobile applications.
5) Chain Analysis
Blockchain analysis firms can trace and analyze transactions, which can link wallet addresses to real-world identities. This practice is frequently used by law enforcement and regulatory agencies to carry out investigations.
How Does A VPN Help With Crypto Trading?
Seeing how cybercrimes are rising, VPNs play a pivotal role in ensuring they meet all privacy and security standards. They protect sensitive data like passwords, financial records, and browsing history against malicious actors. VPNs help enhance your crypto currency security, keeping it private and secure and enabling you to trade anonymously. Hackers can get the opportunity to exploit your data since there are permanent records of transactions on decentralized networks, and your IP address can leave traces at crypto exchanges.
VPNs help protect your identity and prevent entities and other third parties from monitoring your activities while engaging on a crypto exchange platform. Using a VPN adds an extra layer of security when you’re on the trading platforms. Here are the top reasons why:
1) Encrypts Online Traffic
VPNs encrypt your internet traffic and mask your IP address, making it difficult for ISPs and other third parties to track your data and online activities. You can also protect sensitive data when using a public network since they are more susceptible to cyberattacks. Since VPNs encrypt all traffic, you will get a higher level of security to protect user’s assets.
2) Hides Your IP Address
Your IP address leaves traces anytime you visit a crypto exchange. Hackers who access your IP address can figure out sensitive information about you. VPNs add a layer of security to your internet connection, which makes it difficult for malicious actors to intercept your data. This is important when accessing crypto exchanges and wallets, as these involve sensitive financial information.
3) Offers Protection Against Phishing Scams
Hackers often use phishing scams to steal sensitive information. They appear to be a legitimate source and trick you into sharing sensitive financial details. Hackers use phishing attacks to steal passwords and credit card details, and they use these details to target crypto wallets and steal digital assets.
4) Helps Bypass Geolocation Restrictions
Some cryptocurrency exchanges have geographical restrictions and censorship in some regions. VPNs enable you to bypass geolocation restrictions and access these exchanges by connecting to servers in countries where these exchanges are accessible. If you’re a crypto trader who travels a lot, then accessing your trading platforms from different locations can prove to be a hassle.
Countries like China and Vietnam have harsh anti-crypto laws, with specific cryptocurrencies being challenging to trade in those countries. This limits your trading options and causes you to miss profitable opportunities. Using a VPN helps you to bypass geolocation and restrictions. You can also connect to a server nearer to your location for a faster and more stable connection.
What Are The Critical Features Of A Crypto VPN?
These are the most essential features when you’re looking into investing in a reliable VPN for crypto trading. AstrillVPN is our top pick for investing in crypto trading as it has all the essential features needed for crypto trading, which include:
Security should be your topmost priority when you’re trading crypto. AstrillVPN has AES-256 Encryption and top-notch security protocols to protect your online activities and sensitive financial transactions.
It also has a Kill Switch feature that is essential when crypto trading. The Kill Switch automatically disconnects you from the internet when the VPN connection disconnects unexpectedly or due to whatever external factor. It ensures your sensitive data is not compromised if the VPN connection drops abruptly.
AstrillVPN also has a strict No Logs Policy, which is crucial when crypto trading. A No Logs Policy keeps your sensitive data safe by ensuring that even the VPN provider does not collect or store your sensitive financial transactions and online activities. It adds a layer of privacy protection.
Last but not least, AstrillVPN accepts crypto payments and lets you make anonymous payments. It preserves your privacy and ensures your online activities and transactions are safe and secure.
Wrapping Up
If you’re looking for a robust VPN service that supports crypto trading and keeps your assets safe and secure, then you need to opt for a VPN provider that has the essential features to carry out safe transactions. AstrillVPN has all the necessary components required to help you with crypto trading. All you have to do is sign up, pick a server that you want to connect to, and then turn on your VPN connection. Then head over to the crypto exchange platform, and you can trade and sell crypto with your privacy remaining intact.
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