Why do you need a VPN when mining bitcoin
By Nancy William 6 minutes
Bitcoin is, without a doubt, one of the buzzwords of the moment. The first breakout cryptocurrency is often name-checked in place of crypto by people who don’t fully understand it. While many people feel that the only way to get hold of Bitcoin is to buy it, there are other ways to obtain it. One of the most popular ways to do so is to mine it, but do you need a VPN to do so? The answer to this isn’t necessarily yes, you can mine without one. If you want to do it safely and securely, then a VPN is vital. We’ve taken a look into why this is the case, but first, let’s understand why a VPN, in general, is necessary.
Why is a VPN important?
Apart from the aforementioned topic regarding needing a VPN for Bitcoin mining, users must also understand the diverse importance of a VPN in general. There are a lot of cybersecurity vulnerabilities that have taken a higher toll over the years. With a VPN, you will be able to encrypt all incoming and outgoing traffic, secure your device, and more! But, is a VPN vital for Bitcoin mining? Let’s discuss below:
Crypto and security
Cryptocurrency is a hugely popular entity at the moment. It’s used in a variety of different areas, with blockchain technology demonstrating the potential to become a regular part of our everyday lives. So, why would we need a VPN in order to mine it safely?
A great area where crypto offers enhanced security is online casinos. There are a number of crypto casinos available to players at the moment, and they are well guarded and protected. If this is the case, why would you need a VPN to mine Bitcoin?
To put it simply, the security protocols at an online casino are already built into the site. It uses SSL certification, 2FA and other protocols to make sure that users and their data are well protected. When you choose to mine Bitcoin, these protocols are removed as you are doing it yourself. If you don’t put your own security measures in place, then you will be vulnerable to an attack. The SSL certification and 2FA protocols at an online casino would be comparable to having your own VPN to provide security when mining.
The first area where a VPN will help is ironically to stop someone else from using your computer to mine cryptocurrency. A VPN makes it more difficult for your computer to be traced online, which will make it more difficult for malicious software to be installed on your computer. One type of malicious software that is quite prevalent at the moment is crypto-jacking software.
This kind of software is secretly installed on your computer and will then carry out Bitcoin mining when you’re not aware. This uses up your computer’s resources and can make your computer feel slow over time.
If you’re planning on using your computer to mine Bitcoin, then this will make it significantly slower in the long run as well. By combining a VPN with antivirus software, you will be able to avoid crypto-jacking and keep your computer protected.
Protecting your IP
Having a VPN in place will protect your IP. This will make it much harder for hackers to trace your Bitcoin wallet address. So, when you transfer your mined Bitcoin to your wallet, the address won’t be available, and it won’t be compromised by hackers. This is extremely important when it comes to keeping your wallet and its contents in your possession.
On top of this, protecting your IP is vital when it comes to maintaining your anonymity. Due to the fact that there are a number of unclear issues when it comes to the financial regulation of cryptocurrencies, keeping your Bitcoin wallet anonymous is the best choice at the moment. While it might not always be the case, there is always the possibility that regulators may behave in an unfair manner towards crypto owners. The privacy of how you choose to use your own crypto is also something that should be maintained.
Internet privacy is one of the foremost positives when it comes to using a VPN. Combining this with your crypto activities means that you won’t have to worry about people looking at how you are using your crypto.
This is one of the sneakier tricks that scammers will use to get hold of your Bitcoin. Once you have mined your Bitcoin, you will want to use it. This could be in the form of holding it, purchasing other crypto or spending it on items. If you spend it, this can lead to some issues down the line.
Double spending is when a scammer will use a single coin a number of times. This means that out of the transactions that take place, only one of them will be legitimate. All of the others will be cancelled. If you have purchased another crypto with your mined Bitcoin and the scammer double spends, then your transaction will be carried out, but theirs will be cancelled.
A VPN will add an additional layer of security that will help to stop you from being the victim of this scam.
Don’t rely solely on VPNs
While a VPN is extremely useful to keep you safe, it shouldn’t be the only security measure you have in place. Having antivirus software, 2FA and only using legitimate wallets are all very important when it comes to keeping yourself safe. On top of this, it makes sense to have a secure hardware wallet connected to any software wallet. This will help to make sure that your crypto is completely secure when you are storing it.
You should also make sure to only carry out transactions on secure internet connections. If you perform a transaction over public wi-fi, then you will instantly put yourself at a significant level of risk. This will make you much more vulnerable to attack and will prevent you from being completely secure. Another obvious area where you should keep your data secure is to keep your passwords and security keys to yourself.
Never share this information with anyone, even customer support for your exchange. This information can allow anyone to gain access to your crypto. Once it has been sent elsewhere, you will never see it again. If you want to mine Bitcoin, then following all of these tips will help you to keep it completely secure.