Why Use a VPN for Investing in Crypto? Safety Guide

July 17, 2024 By Nick Anderson No Comments 6 minutes

The importance of using a VPN for investing in crypto in an investor’s financial strategy and investment portfolio cannot be overemphasized. Although very unstable and highly volatile, cryptocurrencies give investors a great chance to earn large profits much faster than assets in other markets. While some cryptocurrencies have been known to more than triple investor profits in short periods, less volatile options also pump returns higher than possible in the traditional market.

VPN for Investing in Crypto

Investors seeking options for investments can research crypto news to find presale events for assets listed at low prices, which are likely to spike after they go live on exchanges and trading platforms. The popularity of the crypto sector and the opportunities available in the industry have drawn unwanted attention from hackers and other cybercriminals. This is why all investors must protect themselves by introducing additional layers of security and privacy to their trading activities.

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What is a VPN?

A virtual private network is a tool that creates an encrypted and secure connection on a less secure one to protect packets of data and internet traffic. VPNs typically mask a device’s IP address, encrypt user data, and then route it through a VPN server, decrypting the data before sending it to the internet. Data received from the internet is also encrypted by the VPN server and finally decrypted by the VPN software on the user’s device.

Why Crypto Investors Should Use VPNs

Using a VPN to invest in crypto offers multiple benefits that can broadly be divided into security and privacy. Here are all the benefits in detail:

Security Benefits of Using VPN for Investing in Crypto

Enhanced Security: VPNs are an excellent option for users looking for an extra layer of security for internet activity. According to a Forbes Advisor survey, 80% of people who use VPNs do so for increased security, with 66% using these tools to protect personal information. Crypto investors must also install VPNs on their mobile phones, computers, and other devices to encrypt data when making investment trades.
Better Security from Hacks: Crypto investments, especially whale accounts, are commonly targeted by hackers because many can breach accounts anonymously. Consequently, investors must consider strong and reliable VPN software that protects data from breaches and reduces the chance of compromised private keys and login credentials. This is especially important for investors who regularly use public Wi-Fi networks.
Access to Geo-Restricted Trading Platforms and Exchanges: A VPN broadens users’ access to trading platforms and crypto exchanges that may be otherwise inaccessible. For regulatory reasons, some jurisdictions may disallow users from accessing crypto exchanges that are not within specific borders or are not registered with local authorities. Unfortunately, this could be detrimental to an investor’s crypto trading strategy because offshore exchanges may offer a broader selection of cryptocurrencies, more features, and lower fees. Traders can use these foreign platforms to enjoy arbitrage opportunities or diversify their portfolios.

Privacy Benefits of Using VPN for Online Crypto Investments

Protection Against Price Discrimination: Sometimes, sellers charge buyers prices that vary by geographic location. An asset may be slightly or considerably higher to visitors of an exchange initiating trades from particular locations. A VPN allows users to hide their locations, take advantage of better rates, and potentially increase profits.
Improved Privacy: VPNs heighten user privacy by masking IP addresses. Since the IP address used is not the device’s actual address, trades initiated or concluded by crypto investors are difficult to track to a physical location. Using a VPN to protect personal data and information, in addition to the blockchain’s anonymity, protects crypto investors from attacks that may target large or experienced users. The privacy feature of a VPN is also helpful in the crypto gambling sector, especially among high-stakes players trying to protect their identities.
Protection Against ISP Monitoring: Data privacy breaches are sometimes traced to internet service providers (ISPs). An ISP may monitor user activity and take some action depending on their findings. For instance, ISPs have been known to reduce internet speed whenever they detect high bandwidth activity. In other cases, these networks can sell user data to third parties for advertising and marketing purposes. Using a VPN ensures crypto investors are protected from data breaches that may share information with exchanges and trading platforms. Also, VPN networks can help mask bandwidth activity so that users can enjoy real-time market analysis and quick trades without worrying about speed throttling.

Tips for Protecting Crypto Investments Using a VPN

The following are essential steps for crypto investors looking to protect their portfolios using a VPN:

Choose a Reliable VPN Provider: The VPN market is saturated with several options offering users varying features. However, many of them are unreliable and known to steal user data, which defeats the purpose of installing the software. Investors should do extensive research to choose the best possible option for privacy and security. FastestVPN has strong encryption, an extensive server network, and a no-logs policy, which ensures your privacy, security, and freedom.
Regular Updates: Users should be sure to update the software regularly for the best chance of protection. These updates protect the software with improved security features that help to deal with new threats.
Skip Free VPNs: A general rule of thumb is to avoid free VPN services. Unfortunately, many free VPN providers sell user data to third parties, a common income generation channel for them. Paid VPN providers are more likely to secure user data and would not sell information to any buyers.
Use a Kill Switch: A VPN kill switch is a security feature that immediately cuts a user’s internet connection when it detects VPN disconnection. This extra layer of security guarantees that no data is exchanged outside of the secure network created by the software.

Conclusion: Staying Safe Online

All crypto investors should consider using VPNs to protect trading activity and keep personal information private. A VPN is an essential tool that significantly reduces the risk of phishing attacks, protects against hackers, and helps to sidestep geo-restrictions that may cause price discrimination. However, investors should note that other security measures, including enabling two-factor authentication (2FA) and using a cold wallet, are also necessary to safely enjoy trading and investment activity.

With these extra measures and using VPNs for investing in crypto, users can ensure their financial safety. A VPN will also allow you to tap into richer and better resources to make more financially sound decisions. Get FastestVPN today and make your online crypto investments more secure.