Best VPNs for Cryptocurrency trading: Top 5 providers to protect personal data
Billions of Crypto trading transactions are made every day, but some of these transactions are subject to phishing and other forms of fraud, causing many traders to lose their money. Cryptocurrency trading with a VPN will give you more confidence as an extra layer of security for your maximum protection. In addition, many countries do not precisely govern Cryptocurrency transactions so VPN can help to protect your funds. Many internationally regulated Forex brokers provide secure accounts where you can store your Crypto coins, but if you want to transfer an asset to a third-party resource, you definitely should use a reliable VPN for your deals. In the article, we’ll talk about what VPN is, why it is needed when trading Crypto in the Forex market, and also compare the best VPN services for safe and profitable transactions.
What is a VPN for Forex and Crypto trading?
A VPN is a virtual private network that connects multiple devices by tunneling their traffic over another network connection. In simple terms, a VPN is a technology that allows you to anonymize and secure your activities on the Internet or when trading assets online on the Forex market.
A VPN connection is created by using at least two devices:
- Server: A device that hosts the underlying software that listens on specific ports waiting for a client connection to be established.
- Client: The device of the user from which the connection to the remote server is made.
The encrypted information is constantly moving between the server and the client through the VPN tunnel, and all cryptographic data processing (encryption/decryption) is performed on the devices themselves. Therefore, under tunneling conditions, no one will be able to intercept user data.
Why do traders need a VPN in the Crypto market?
Cryptocurrency is an attractive and profitable asset for Forex trading. Being decentralized, it does not have a singular supervising body with branches in many countries, which allows you to conduct part of the transactions anonymously, but at the same time, it can still be tracked by anyone (hackers, government, etc.) through your IP address. Many Top Forex brokers provide secure Crypto-storing accounts, however, for example, if traders want to transfer digital coins to a third-party resource or hide their activity from the government, they should use a reliable VPN service for trading. A VPN encrypts your online data and protects your identity as well, and with its added benefits, you can buy and sell Cryptocurrency without much worry.
Why VPN is needed for Crypto trading:
- VPN for Crypto trading hides activities from your Internet Service Provider (ISP)
Your ISP may not know how many Bitcoins or other digital assets you have bought or sold, but they do know exactly which Forex broker trading platform you use and what time you logged in. But if you are using a VPN, your ISP will only see the IP address of the VPN server you are using instead of the Crypto trading platform. Because a VPN encrypts all online data, your ISP cannot manipulate your connection.
- VPN for Crypto trading protects your traffic
You are likely using a private Wi-Fi connection to make Crypto trades in the Forex market, which provides little to no security. Hackers can easily track your location and even access your credentials.
A VPN encrypts your online traffic/data and makes it indecipherable. It also hides your IP address and redirects your traffic from somewhere else, which may be far away. This makes it virtually impossible for hackers to track your activities online.
- VPN protects traders against phishing attacks
Phishing is the sending of fraudulent messages from a seemingly trustworthy source and is one of the most common ways hackers steal Crypto assets. Over the years, there has been a gradual increase in phishing attacks.
A VPN blocks certain websites that could be potentially malicious, which acts as an extra layer of security for your trading.
- VPN for Forex Crypto trading helps bypass the blocking of broker sites
The federal agencies of some countries may block brokerage sites, either by accident or for other reasons, even if the broker accepts clients from these countries. To bypass such blockings and access unhindered Crypto trading, market participants often use VPN by changing their IP address.
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