Cryptocurrencies and blockchain wallets are huge. Since 2017, the number of people using them has doubled. Today cryptocurrencies are used around the globe and there are over 1,500 different types being traded.
However, have you ever given any consideration as to how safe blockchain really is? How can you protect your safety when using blockchain?
The answer is simple, use a VPN.
Is Using Cryptocurrency Anonymous
One of the main reasons there has been a rise in the popularity of cryptocurrencies is that you can remain anonymous. Many people believe that by using a cryptocurrency such as Bitcoin their transactions won’t be tracked. To some extent, this is true, but not completely.
Cryptocurrency inherently offer a level of privacy. However, cryptocurrencies are traded online and their movements can be traced, as with anything you do online. One way of obtaining peace of mind for security online, whether in relation to trading cryptocurrencies or not, is going behind a virtual private network, known as a VPN.
How Blockchain Is Tracked And How Does A VPN Help
All online transactions, cryptocurrencies included, can be tracked. This is because any form of online communication is traceable. But how is it tracked? The easiest way to describe how data is tracked online is to explain the basics of the workings of the internet.
When you are online, data is transferred and the data is called a “packet”. This packet of data is split among separate components, which hold different information. The information contains the IP address of the computer you are using along with destination information.
This means if you communicate with a website, such as on the blockchain, communication is in the packets. This means your IP address and other information can be spied upon while those packets are in transit. A Hacker could intercept the packets, which means they then have access to your information and your personal data, including blockchain transactions, and even the data’s route.
It’s Not Just Hackers You Need To Worry About
When considering anonymity in dealing in cryptocurrency it is not just hackers that you need to be concerned about.
It may surprise you to learn that your ISP, your internet service provider, can see all of your packets. Yes, they know everything that you do online. Therefore, the ISP is in a position to tell if you undertake any blockchain transactions.
What is more disturbing is that this applies to any surveillance agency or hacker. The data you thought was safe from prying eyes is not safe at all. In fact, it can be intercepted and read.
Risks With Blockchain Transactions
What this boils down to is whenever you undertake a transaction on the blockchain you send out the IP address, the address of the destination, plus the transaction amount.
You might believe that this is all well and good, as you have not sent your identity in the packet of data. Wrong. If someone intercepts the data and reads it, they can discover the IP address then easily learn more information about the sender. This may include their address and name.
A Simple Solution For Security Is A VPN
A VPN is a simple solution for anyone who wants to remain anonymous online. This includes sending and receiving cryptocurrency, or any other online activity.
The IP address of your computer is the primary thing people use to track what you are doing online. If they cannot find your IP address, you have added security in that there is less chance of being tracked.
A VPN will hide your real IP address. To do this it reroutes the traffic, or packets, sent from your computer through a unique server elsewhere in the world. If anyone is trying to find your IP address to determine where you live, they will not find your actual IP address.
A VPN Makes Buying and Selling Cryptocurrency More Secure
With a VPN in place, it makes buying and selling cryptocurrency more secure. There are many different providers offering virtual private networks. Some come with a monthly or yearly subscription and others are offered free.
In the case of VPNs, the saying “you only get what you pay for” should be heeded. Some companies offering free VPNs have been known to sell the data they collect on customers to third parties. This essentially renders the VPN obsolete. There are numerous ethical VPN providers out there, so take a look at some of the ones we recommend and keep your online actions to yourself.