Cryptocurrency trading has become a popular sector as more and more people are drawn towards this decentralized market as it gives them more control over their wealth. However, keeping all the benefits of crypto trading aside, it has shortcomings that need to be addressed.
If you trade in Bitcoin or other cryptocurrencies, you are putting your money on the line because unlike the traditional banking systems, in crypto trading, you have no safeguard to protect your currency. Meaning, as a result of a small human error or hacking, you could lose everything.
If you want to stay safe while crypto trading or want to protect your crypto assets, it’s best to use a Virtual Private Network that serves as a protective shield over you while you access the internet for trading online.
In this article, we will shed light on how a VPN protects your cryptocurrency and what are some of the most common cryptocurrency security risks that you should be aware of.
How a VPN improves security during crypto trading
If you are looking for a way to secure your crypto trading from hackers, then you should definitely get a VPN as it not only protects against hackers but also safeguards against malware and malicious software.
There are a lot of VPNs in the market – some are fake, while a handful are legit. For example, a top recommendation is NordVPN, offering military-grade encryption and fool-proof protection against all sorts of attacks.
So, how does a VPN protect your cryptocurrency?
Before getting to that, let’s look at what a VPN really does. VPN is software that encrypts online data when you are using the internet. Apart from encryption, it also masks your real IP address and reroutes your traffic from another server location that can be thousands of kilometers away from you. This way, it makes it almost impossible to track your online activities.
When you use a VPN, no one (even government authorities and your internet service provider) can track your IP. Therefore, it helps you maintain anonymity online and protects against phishing attacks and more.
VPN also offers an amazing feature called a Kill Switch. A Kill Switch automatically disconnects the connection on your device in case of a VPN connection drop. It ensures that your internet connection during crypto trading is encrypted all the time so the hacker cannot identify your real location or intercept your data.
Cryptocurrency Security Risks
Now you know how to protect yourself and stay safe and anonymous while crypto trading. Let’s look at some of the most common cryptocurrency security risks and threats that you should know about.
1. Fake crypto trading exchange
Fake crypto trading exchanges are quite common, but they are not legitimate. Most trading firms use tricks to inflate the volume of trading and generate false reports in which more than 90% of the transactions are fake. Therefore, it’s best to stick to reliable personnel when it comes to crypto trading.
Cryptojacking is when a hacker takes control of your device to mine cryptocurrency on the criminal’s behalf. This has become a popular way; criminals are targeting people while crypt trading. The hacker uses the device to mine cryptocurrency without your knowledge. As a result, the new tokens and fees are deposited in the attacker’s account, and the cost of mining is borne by the victim.
Therefore, it is highly recommended you use a VPN while crypto trading as it will notify you in case of a security breach and help you anonymously make payments online. VPN is a necessary tool for online privacy.
Double spending is a scam where a user uses a single coin to make more than one transaction. All the transactions seem legitimate, but in reality, only one is legal. Scammers make a copy of the cryptocurrency and use it to make payments while keeping the original one to themselves.
4. Crypto ICO fraud
ICO fraud is when cryptocurrency startups disguise themselves as legitimate when in reality, they are fake, and once you trade with them, you might lose all your money. Fraudulent ICO’s with fake coins scam people into investing in their company and then steal all the coins they get. To protect yourself, it’s best to do your research before you decide to invest in a project.
Cryptocurrency trading comes with a lot of security risks and issues. As you can see, VPN is not an option but a necessity when it comes to crypto trading. If you want to secure your online account, a VPN is a must. A Virtual Private Network provides you all the necessary protection for your cryptocurrency transactions. It hides your IP address, offering you a higher level of anonymity.