There’s no doubt that the biggest global industries in 2023 are tech-driven, while there remains a significant crossover between many of these sectors.
For example, a growing number of cryptocurrency traders regularly utilise a VPN, in order to encrypt their web traffic and data and minimise the risk of their funds being stolen.
The global VPN market certainly represents big business, with this sector worth an estimated $44.6 billion at the end of 2022 (and is poised to hit $75.59 billion in four years’ time).
Conversely, the cryptocurrency market boasts a cumulative market cap valuation of $1.17 trillion, which this figure has actually topped $3 trillion in the not-too-distant past.
But do you really need a VPN connection to safely trade or exchange crypto assets? Here’s our take on crypto trading and the potential benefits of using a VPN!
Wait – Isn’t Crypto Trading Anonymous?
Cryptocurrency is renowned for its enhanced security and anonymity, as you can trade and exchange tokens through dedicated software or hardware wallets that don’t require your personal information to operate.
Crypto transactions are also secured using public and private keys, which are variables in cryptography and utilise unique algorithms to encrypt and decrypt data.
In the case of public key cryptography, two keys are used, one for encryption and the other for the purpose of decryption. These are commonly used to send funds from one wallet to another, with one of these cryptographic hashes kept secret.
In contrast, the private key contains just a single key, which is kept secret at all times and enables the receiver to safely accept funds into their wallet.
However, to say that crypto trading and the underlying blockchain is completely secure and anonymous is an overstatement, with even Bitcoin itself confirming that the token’s anonymity protocols aren’t omnipotent.
In fact, Bitcoin and other crypto assets remain vulnerable to web trackers and cookies, which are omnipresent on Internet browsers and compromise your anonymity, passwords and location information.
How Can VPNs Help With This?
This leads us neatly onto the topic of VPNs (virtual private networks), which seek to create a virtual and encrypted tunnel between your device and a remorse server operated by the client.
This creates a secure and encrypted route through which your data and web traffic is funnelled, with this appearing as an indecipherable string of code to potential hackers and even network managers.
It will also prevent Internet Service Providers (ISPs) from tracking and monitoring your activity, preventing them from engaging in practices such as bandwidth (which may make it harder to mine tokens or complete quick and efficient transactions).
To provide some context, let’s say that you want to complete a crypto transaction while connected to a public Wi-Fi network. This type of network is typically unsecured and uses the vulnerable WPA2 protocol, putting your data at immediate risk of being intercepted when you place trades.
However, a VPN will create an additional layer of network protection and encryption, securing your transactions in real-time and while on the move.
Even when using your home network to complete crypto transactions, you may find that private Wi-Fi connections use either WP2 or its successor WPA 3. Both of these have vulnerabilities, creating a similar level of risk and making the contents of your crypto wallet vulnerable.
So, installing a premium VPN on both your desktop and mobile devices can help to secure your crypto holdings, while ensuring that all transactions are fully encrypted and protected wherever you are when you complete them.
The Last Word – Masking Your IP and Crypto Wallet Address
It’s also interesting to note that whenever you use a crypto trading platform or exchange, it can see your corporeal IP address and location.
The same risk applies when using a dedicated blockchain explorer such as Etherscan, while in some cases such platforms may even be able to associate this information with your public wallet address.
Once again, a VPN client can be useful here, as it actively masks your device’s IP address and physical location. It does this by connecting to a remote server of your choice, which completely redirects your traffic and minimizes the risk of practices such as doxing and the effectiveness of malware attacks.
By masking your IP address, you can also prevent other datasets from being exposed when trading cryptocurrency. This is a huge advantage, especially when handling, storing or exchanging large volumes of crypto.
Ultimately, although blockchain may be inherently secure and anonymous, they don’t provide 100% protection or privacy when trading crypto assets. Because of this, and the prominent threat that exists through public networks in particular, we’d recommend using a paid and premium VPN for the UK and across all relevant devices.
This will provide additional peace of mind and enhanced network security, while paid subscriptions with market leading clients can cost as little as $2.99 per month.