The trading of cryptocurrencies is becoming rampant these days as more and more are starting to gain interest in having a decentralized market. Cryptocurrencies are one of the most revolutionary inventions in worldwide banking history. People would rather have control over their wealth and the way it’s stored than put their trust in banks that have once failed or can fail in the long run. However, there are also shortcomings in the use of cryptocurrencies. There is the risk that accompanies the service, as hackers and other cybercriminals are on the lookout for loopholes.
Cryptocurrency Market Analysis
To be able to give an outlook for cryptocurrencies it is required to go back to their history and give a simple definition of what they are. They are a digital currency that uses cryptography tailored to work as an exchange medium with verified transactions. The word ‘crypto’ means hidden or secret. Yet, as we are living in the digital era, this is no longer a secret. This market keeps growing due to the low cost of ownership, fast and secure transactions increase the growth of the market globally. Some of the most famous places that engage in this cryptocurrency activity are North America, Europe, Asia-Pacific, and LAMEA.
Cryptocurrency Security Risk
Just because no single entity controls and regulates cryptocurrencies’ flow and operation do not mean it does not encounter some security risk. To make matters complex, transactions using crypto are permanent, making it impossible to trace or reverse any transaction once the coins leave the account. This security crack and several others give hackers the chance to steal small amounts from different users.
Aside from the vulnerability to hacking, users also have to be careful of other security risks involved in crypto. Here are few risks with cryptocurrencies:
Cryptocurrency wallet addresses are not completely anonymous
People can get the location and identity of the owner of the wallet address by connecting the address of the wallet to the IP address of the user.
Fake trading exchange
People participate in crypto trading, but this trading is not legitimate. It is why it is advisable to only trade with reputable personnel.
Double spending is a type of scam whereby the user uses a single coin to make multiple transactions. All of the transactions might appear legitimate, but it will invalidate all the transactions but one. Double spending is a lucrative attack vector for scammers, but you should not fall for this scam.
Cryptojacking occurs when a user’s device gets hacked and the mining software gets installed. The hacker then uses the device’s CPU to mine cryptocurrencies without the knowledge of the hacker. Cryptojacking tools are becoming a prevalent form of malware, so you have to be careful.
ICO fraud is becoming rampant, so you have to be careful with your cryptocurrencies. This fraud occurs mostly with new cryptocurrency startups. Some of them are legitimate, while others are in disguised form.
Several security risks accompany cryptocurrencies. You have to be careful with your cryptocurrencies to avoid you losing them to others.
How VPN Improves Security
VPN will help improve your security with your cryptocurrencies. If you are looking for a way to make your crypto trading secure and free from attack, then you should make use of a VPN as it will prevent attacks from hackers, malware, and other malicious software. There are several types of VPNs you can use to keep your cryptocurrency secured.
Among all VPN, there are the legit ones and the fake ones. It is best to go for the legit ones as they will provide you with 100% protection. You can also check for good reviews of different VPNs to know the one to choose.
But how does VPN improve security? It helps you encrypt the data you send through any network, making it difficult to intercept and make you safe. VPN also enables you to hide your IP address to prevent hackers, government officials, etc., from tracking your IP address.
VPN also does not store your logs and possesses a kill switch. This feature allows you to maintain your anonymity. VPN will also help you add an extra layer of security against viruses, phishing attacks, and malware.
What to Look Out For in a VPN for Your Cryptocurrency
When choosing a VPN for your cryptocurrency, you have to look out for some things. You have to make sure the VPN service includes elements that suit your crypto use. The VPN service should:
- Should provide IP leak protection and strong encryption.
- Offer reliable connection and fast speed.
- Accept cryptocurrency.
- Have dedicated customer support.
The safest way for bitcoin trading
You have to take some precautions when dealing with cryptocurrencies. They include:
- Always use two-factor authentication to secure your account. Be careful not to use your phone number or SMS for this. Instead, use a security key to prevent others from stealing your bitcoin wallet.
- Encrypt your wallet or your smartphone. This is another protection from thieves.
- Use a strong password and different ones for different wallets. Do not share your password with anyone else, not even the people closest to you. Also, make sure that you remember it.
- Do not do transactions over public WiFi except if you are using a VPN. It would be best to do so in the privacy of your home.
- Make use of clients that change your IP address with each transaction.
Trading cryptocurrency can come with a lot of security risks. VPN provides you with the protection you need for your cryptocurrency transactions. You only need to get the right VPN for your crypto, and you will be safe all through.