With cryptocurrency becoming more and more mainstream we’ve started to see a lot more reports of hackers gaining control of individual’s crypto investments and unlike the traditional banking we are use to your investments do not come with any protections.
One of the best ways to protect your cryptocurrency is using a virtual private network (VPN) which gives you the anonymity and online privacy that help keep your accounts safer.
In this guide, we will discuss the pros and cons of using a VPN for cryptocurrency investments.
Pros of a VPN for Crypto:
- Encrypts your data and helps to prevent cybercrime
- Can help you bypass geo-restrictions
- Hides your IP address and location
- Improves online privacy
Cons of a VPN for Crypto:
- Slows down internet connection
- Can be difficult to set up
- Some countries are blocking VPNs
- Not all VPN providers are created equal – do your research!
Should I use a VPN for cryptocurrency?
One of the biggest benefits of using a VPN is that it encrypts your web traffic making it difficult for hackers to spy on any of your transactions.
A VPN can also be used to improve your online privacy by hiding your IP address and location.
This is important because if you are using a public Wi-Fi network, then your personal data could be at risk if it is not properly encrypted.
Another advantage of using a VPN is that it can help you to bypass geo-restrictions.
If you are living in a country where cryptocurrency is banned, or if you want to access exchanges located in other countries, then using a VPN will allow you to do this. This is known as VPN Location Spoofing.
The main disadvantage of using a VPN is that it can slow down your internet connection and this is because your data has to travel further through the VPN server before it reaches its destination.
Another downside of using a VPN is that it can be difficult to set up, especially if you are not familiar with technology.
Do I need a VPN to trade crypto?
The answer is … it is up to you.
Personally we didn’t start using a crypto VPN until we got heavily into trading cryptocurrency. Part of this was because we didn’t know the benefits of using a VPN, but the other was we didn’t have a lot of skin the game if something happened to our investments.
Now that we are 5+ years into investing in cryptocurrency and NFTs we’ve decided it was in our best interest to start using a VPN.