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Why Should You Use VPN When Trading Crypto? | Top 5 Reasons

Why Should You Use VPN When Trading Crypto
Marko Marjanovic

A virtual private network (VPM) functions by encrypting your internet connection and protecting your data and personal information from being tampered with. This form of digital protection is becoming increasingly important in the realm of cryptocurrency trading, as it plays a decisive role in shielding your details from hackers and other malicious parties that plague the crypto sphere. 

In this guide, we’ll be taking a look at the top five reasons why you should use VPN when trading crypto to give you some additional insight into the importance of internet anonymity and digital safety. 

Enjoy effortless online privacy with a VPN & guard your identity with a single app

  • Surf the web without being tracked

  • Hide your IP address and encrypt your sensitive data

  • Get alerted of data breaches targeting your personal information

  • Massive 3,200+ high-speed servers fleet in 100+ countries

  • Change digital locations to access websites while travelling

3200+ Servers

What is a VPN?

What is a VPN? Source: Surfshark YouTube channel.

Why should you use VPN when trading crypto?

Given that cyber threats are escalating, virtual private networks have started playing a pivotal role in upholding stringent privacy and security standards. They stand as protective barriers between the slings and arrows of hackers and sensitive user data like passwords, financial records, and browsing history. In other words, by using a VPN, we thwart the efforts of hackers, data loggers, and unauthorized surveillance entities to misuse our information (usually for profit).

How does that translate to the crypto sphere? VPNs enhance your cryptocurrency security, mostly in regard to privacy. Although commonly believed to be completely anonymous, most cryptocurrencies offer users only a certain level of privacy, despite robust security measures and encryption protocols employed by crypto exchanges. 

Consequently, there is always some room for hackers to potentially exploit. This is mostly because there are permanent records of all transactions done on decentralized networks and because your IP address always leaves some kind of trace at crypto exchanges and online brokers. 

Fortunately, a good VPN client can help protect your identity from any entity attempting to monitor your activities whenever you’re engaging with crypto. However, it is important to realize that not even VPNs can provide you utmost anonymity. For example, your ISP will know you are using a VPN, and VPNs cannot make online payments untraceable as they are incapable of masking things such as your credit card activity.

Still, some level of extra protection is better than nothing, and using a VPN when trading crypto is highly advisable. Here are our top five reasons why:

1. It encrypts your data

One of the biggest upsides of using a VPN is the encryption of your internet traffic. The main reason for this is twofold:

  1. A lot of people are not aware that their internet service providers (ISP) cut a lot of costs by employing outdated security and encryption measures;
  2. A lot of people access the internet on the go, using public Wi-Fi and public networks. These networks are often the most vulnerable to attacks.

However, once we get into the murkier waters, such as those surrounding crypto, potential threats become much more subtle. For example, it is easy for hackers to mask malicious networks and present them as legitimate. 

Think of this as a sort of honeypot or trap. In other words, even if you’re fortunate enough that your ISP is employing some more up-to-date encryption protocols, you still might connect to malicious websites that presented themselves as legit — or too legit. However, with a VPN client on your device, you can significantly mitigate the risks. 

2. It hides your IP address.

As mentioned, your IP address leaves a trace every time you visit a crypto exchange. This might seem meaningless, but a lot of sensitive information is coded in your IP address, such as your exact physical location. With that in mind, it is not hard imagining what kind of use hackers and data loggers might have for such information.

But problems do not end there. As you know, a lot of crypto operations are done on decentralized networks, meaning regulatory practices can be shady or downright absent. In addition, each user’s device serves as a node on the blockchain, keeping track of and verifying various tasks operating on the network. 

As you can probably guess, your IP can be recorded within the node, and since decentralized blockchains are open to everyone, some record of your crypto activities might become available to virtually any interested party if they can get their hands on your actual IP. By using a VPN, you can conceal your actual IP address within the node.

3. It protects you from scams 

Hackers have a huge arsenal of scams at their disposal, such as phishing, which has become 40% more common in the last year. This is hardly surprising, as phishing (i.e., the use of fraudulent and deceptive tactics to trick users into revealing their passwords and other data), is one of the simplest scam tactics.

While VPN clients are not specifically designed to prevent individual crypto scams — indeed, only extreme caution can protect you from malicious texts, emails, and phone calls — some of them come with pre-installed filters that blacklist potentially risky websites. Those can, of course, include crypto exchange platforms.

4. It can help you bypass geographical restrictions and unlock additional coins

Bypassing geographical restrictions on websites such as Netflix and Amazon Prime is one of the main reasons people opt for VPNs in the first place. Fortunately, for crypto enthusiasts, they can perform a similar function in crypto trading.

By using a VPN, you can conceal your IP address, masking your geographical location and making it impossible for the crypto trading platform to know where you really are. This is particularly useful in light of recent restrictions on platforms such as Bitstamp, which are making it impossible for U.S. residents to access a number of altcoins.

5. It can help you deal with censorship

Not all countries are willing to embrace cryptocurrencies — some restrict or downright ban them. A notable example is China, which made all crypto-related operations illegal in September 2021.

Since employing a VPN allows you to mask your physical location, you can use it to circumvent censorship and gain access to online trading platforms. That is, you’ll be able to partially cover your digital tracks and make it more difficult for authorities to link cryptocurrency transactions to you directly.

Disclaimer: It is essential to use a VPN responsibly and within the boundaries of your country’s law. Engaging in illegal activities online, with or without VPN, is against the law and can lead to serious consequences. Finbold does not endorse nor is responsible for any misuse of VPN products.

What kind of VPN should you use when trading crypto?

There are a plethora of VPN clients available today, some free and some requiring a subscription. While free VPNs can be useful if you want to test the waters, it is generally not advisable that you use them when trading crypto for a number of reasons.

For one, a lot of free VPN providers log and sell user data, which is something you want to avoid by using a VPN in the first place. Second, many free VPNs have a limited number of available servers you can connect to. This means you won’t be able to unlock all geographically restricted tokens. Thirdly, free VPNs tend to have limited additional features, such as antivirus, that are simply essential for online security.

Our go-to subscription-based VPN for crypto trading is Surfshark. It’s available Android, iOS, macOS, Windows, Linux, it comes as a browser extension for Mozilla and Chrome, and it is packed with bonus safety features conducive to crypto trading, such as:

  • CleanWeb, which blocks all kinds of ads, trackers, and malware;
  • GPS override, which ensures your GPS location matches your VPN server location and does not hinder geographical bypassing;
  • Alert, which sends users notifications whenever a data leak happens;
  • Incogni, which automatically contacts online data brokers and requests that they delete any data they might have gathered on you;
  • Kill Switch, which ensures your internet connection will be automatically cut off if the VPN connection is lost;
  • NoBorders, which lets users bypass restrictions in countries with strict censorship laws.

Enjoy effortless online privacy with a VPN & guard your identity with a single app

  • Surf the web without being tracked

  • Hide your IP address and encrypt your sensitive data

  • Get alerted of data breaches targeting your personal information

  • Massive 3,200+ high-speed servers fleet in 100+ countries

  • Change digital locations to access websites while travelling

3200+ Servers

Conclusion

The bottom line is: if you are serious about internet safety and privacy, and if you’re engaging with crypto frequently, using a VPN to cover up some of your operations is pretty much mandatory. Namely, it can help you mask your IP, encrypt your personal data, avoid a good number of scams, and tackle censorship, which can allow you to diversify your crypto portfolio by adding some additional altcoins to it.

However, keep in mind that not all VPNs are made equal. Most importantly, try avoiding free VPN clients and choose a premium solution that won’t leave any room for doubt as to whether your data is safe. 

FAQs about why you should use a VPN when trading crypto

Most of the time, it is legal to use a VPN when trading crypto. However, be sure to check the broker’s terms of services, as some of them don’t allow VPNs.

Can I use a free VPN for crypto trading?

You can use a free VPN when trading crypto. However, that is not advisable, as free VPNs have limited security features and their providers tend to log user data.

How does using a VPN enhance crypto trading security?

Using a VPN increases your security when trading crypto in many ways. For example, it can: encrypt your data, mask your IP address, help you prevent scams like phishing, etc.

Enjoy effortless online privacy with a VPN & guard your identity with a single app

  • Surf the web without being tracked

  • Hide your IP address and encrypt your sensitive data

  • Get alerted of data breaches targeting your personal information

  • Massive 3,200+ high-speed servers fleet in 100+ countries

  • Change digital locations to access websites while travelling

3200+ Servers

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