Bitcoin has exploded in popularity since it came out ten or so years ago, and it’s not hard to understand why. The cryptocurrency allows you to instantly send and receive payments anywhere, at any time for minimal fees. Plus, you’re in full control of your money, and no intermediary or personal information is involved when making bitcoin transactions.
In other words, you act as your own bank! However, this also means that you alone are responsible for the security of your funds. In this article, we’ll take a closer look at how a VPN for bitcoin can help and some top tips to ensure all your crypto activities remain protected:
Is Bitcoin Safe?
Yes, mostly. Bitcoin functions using a decentralized system known as the blockchain. All transactions are recorded on thousands of nodes distributed across the world, making fraud more difficult. To control the network, someone would have to hack into 51% of the computers simultaneously, which is virtually impossible.
That said, bitcoin transactions aren’t completely anonymous and secure. You can conduct payments without using your name, but your bitcoin address is visible to everyone in the blockchain. You’re essentially pseudonymous, and not anonymous. As a result, your bitcoin address(es) can be tracked and linked back to you.
Sure, this isn’t easy to do, but it isn’t impossible either!
What are the Security Threats Associated with Bitcoin?
If you’re not cautious enough, your bitcoin security and privacy can indeed be compromised. Here’s how:
- No Encryption: Bitcoin doesn’t use encryption, but rather is cryptographically signed. This, coupled with the fact that all transactions are public knowledge, makes it possible to connect your bitcoin address to your IP address and identify you.
- MITM Attacks: Cybercriminals can install malware on your device via email or open Wi-Fi hotspots to divert your Bitcoin transactions from their intented destination into their own pockets.
- ISP Monitoring: Your Internet Service Provider (ISP) knows everything you do online, including when you’re using bitcoin. By taking a look at your traffic, they can easily trace your bitcoin transactions.
- Phishing: This type of social engineering attack is quite common in the cryptocurrency ecosystem. It often consists of attackers convincing victims into downloading a malicious file or visiting a fraudulent website.
How Can a VPN for Bitcoin Help You?
A VPN won’t exactly make you invisible, but it does improve the security and privacy of your Bitcoin transactions. Here’s how:
1. Military-Grade Encryption
Since all your traffic is secured with robust encryption when you’re carrying out transactions, it’s considerably harder for interested third-parties to eavesdrop.
2. IP Address Masking
With your original IP address concealed with a virtual one, your device’s location won’t become linked to your bitcoin address.
3. No Log Policy
Unlike free VPNs, a good paid VPN won’t store logs of your online activities – this goes a long way in maintaining your anonymity. They can’t share what they don’t have! Some providers even have their no-log policy audited to back their claims of authenticity.
Note: You can also configure your VPN only to safeguard your bitcoin activities using a feature known as Split Tunneling.
Frequently Asked Questions
Here are some of the most commonly asked questions about Bitcoin and VPNs:
Are Bitcoin Payments Traceable?
Contrary to popular belief, bitcoin isn’t untraceable. Besides, all transactions are stored publicly on the blockchain! This means anyone can view the transactions of a particular Bitcoin address and tie them to the person who made them. By using a VPN for bitcoin, though, you can make it trickier for your bitcoin payments to be traced.
Is Paying by Bitcoin Safe?
Yes, bitcoin is undoubtedly one of the safest ways to make payments. But it’s important to keep in mind that transactions are irreversible and can only be refunded by the recipient. So, you should only do business with businesses or individuals you trust.
Need a VPN for Bitcoin Transactions?
If you’re in search of a VPN for bitcoin, we’re not surprised because it’s one of the best ways to protect your Bitcoin transactions. Well, look no further when PureVPN is here!
We’re a tested no-log VPN service that offers features like AES 256-bit encryption, IP address masking, Internet kill switch, and DNS leak protection to take your bitcoin security and privacy to the next level.
All you have to do is:
- Subscribe to PureVPN.
- Download and install the PureVPN app for your preferred device.
- Log in using your credentials.
- Connect to a VPN server close to your real location.
- Voila! Conduct bitcoin transactions safely and with peace of mind.