VPN Role in Blockchain & Crypto Transactions – Security Benefits

August 15, 2024 By Nancy William No Comments 6 minutes

Crypto is safe, but how much? We all know it is difficult and near-impossible to hack and compromise it, but that thin line between near and impossible is all it takes for a dedicated hacker to ruin your day in the best of scenarios. You can never be too safe, and digital protection works best when you pile it on, layer by layer. Combining the best of both worlds, VPN + crypto will give you the security results you wish for, without much hassle for you but plenty of obstacles for any would-be attackers. That said, we’ve discussed the VPN role in blockchain and crypto transactions and its security benefits.

VPN Role in Blockchain & Crypto Transactions

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Role of VPN For Secure Blockchain and Crypto Transactions

Here are 6 ways to show you its role and benefits:

1. Enhanced anonymity

One slip could prove fatal online, as it can provide more than enough info for a skilled attacker to breach your defenses. Trading cryptocurrencies relies on blockchain technology, where each part is connected with the rest, and they contain all the data related between the cryptocurrency and the owner. The data is encrypted and read-only, and all transactions rely on the security of the entire blockchain, but accidents happen.

Let’s say you wish to buy some of the latest coins predicted to explode, like the most popular meme coins listed here. The interaction between you and the potential seller (or buyer if you are selling) is a critical step and can thus be subject to attacks. But using a VPN can obscure you even then, adding one more layer to confuse the attacker and make his attempts difficult. By the time, and if they manage to break through your setup, you’ll be long gone and your information safe. Scams involving Bitcoin are more common than those with meme coins, though, thanks to BTC’s enormous value and huge market cap.

2. More Options When Crypto-trading

The value of crypto may be universal, but the laws surrounding it are not the same worldwide. Some countries are more open and welcoming towards crypto, others tend to overregulate it, and some outright ban it. Anything related to crypto, from trading to crypto gambling, can be difficult if you are trying to access it from a restrictive country or wish to trade with someone living there.

But now, with a VPN, you can redirect your internet traffic and change your address, confusing servers, and bypassing regulations. Using a VPN is a legal and valid strategy, as a VPN will show that your IP address is coming from any country. By using this, you are also protecting your starting point, unlocking more features blocked by geo-location, and accessing a wider crypto market. In this example, VPN also makes crypto trading safe, as your original data stays hidden and is not subject to tracking.

3. Protect Against ISP

Even in countries where everything around crypto trading is legal and allowed, ISPs (Internet Service Providers) can still track your data. While ISPs can see every detail of your potential crypt trades, they can monitor your data usage and manipulate the flow. Trading crypto demands plenty of internet traffic and data, as much information is transferred between parties. Whenever an ISP detects such a spike in data usage, it may throttle or limit your internet access via your IP, but a VPN prevents that.

As you can appear from anywhere in the world, it’s impossible for an ISP to track your location, data, and crypto trades. That way, you can use and trade crypto freely. For every high-volume crypto trader, a VPN is necessary to make their transactions run smoothly and uninterrupted.

4. Prevent Phishing

We’ve repeatedly mentioned how using a VPN adds an additional layer of security, but in concrete terms, it severely hinders any phishing attempts at your data. Your crypto portfolio is only as good as your crypto wallet is safe, and your wallet can be a prime target for any attackers. Phishing attacks can be made by tracking your IP or by getting you to reveal any relevant data.

By not directly attacking your cryptocurrencies and portfolio, phishers use a back door and try to hijack your accounts by tricking you or tracking your IP and data. VPN is crucial for your protection against phishing attacks because it hides your identity, making you appear as anyone and from anywhere.

5. Exclusive connections

VPN can create exclusive connections, masking all parties involved and creating an invisible and exclusive channel for crypto trading. Some blockchain networks or crypto exchanges even require a VPN from their users or provide their own, as the added security in this form makes trading safer. The exclusive VPN address, which can hide your IP and internet traffic, can make both parties invisible to attackers, hampering cybercriminals in their attempts to steal data and disrupt crypto trading. Think of your trades as two people meeting in a place. Such a gathering can attract attention from any people in between. By using a VPN, both parties trade under the guise of invisibility.

6. Access to more information

If you are trading crypto, you know how much value information holds. In this regard, a VPN may not directly protect your cryptocurrencies, but a VPN will open up more doors. Just as crypto laws are not equal everywhere in the world, so too are not all websites present in each country. Whether blocked by ISP or local laws, restricted access to information can lead to poor decision-making or leave you in the dark. VPNs in these scenarios can remove geo-blocking and unlock every site and news portal while keeping you safe from data tracking, which can be sold later. The added privacy, while enabling you to stay updated via a VPN, can directly contribute to the safety and expansion of your crypto portfolio.

To Conclude

Crypto safety will only continue to rise as a topic each day as more and more crypto traders enter the market. Each user values their transactions, regardless of value, and aims to keep their data safe. One breach can cause plenty of damage, and the disruption in the trading chain causes disarray and the deterioration of trust. With a VPN and the cryptos blockchain tech working side-by-side, users are very protected, but the technology will continue to evolve in both ways. Whenever an attacking method gets invented, a defensive countermeasure must follow or, better yet, stay ahead of the curve. Just like the users who implemented the VPN+crypto combo!