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Why is using a VPN important to crypto miners? » NullTX

Why is using a VPN important to crypto miners? » NullTX


Crypto miners need a VPN. The community of cryptocurrency miners are the residents of the blockchain. Cryptocurrencies such as Bitcoin are emerging as the new rulers of online financial transactions that need the extra layer of collateral that a VPN provides.

This post will cover the following three areas: 1) Crypto miners: what they mine and how they do it, 2) VPN: what it does and how it adds more online security for Bitcoin users, and 3) The extra security of a VPN: why crypto miners need it.

  1. What do bitcoin miners do?

Let’s follow the money and explore the concept of cryptocurrency mining.

Cryptocurrencies such as Bitcoin are hunting in the economies of the world. Bitcoin miners stand apart from the stream of bitcoin trading and exchange by doing coding work. They are like negotiators in that they check and verify past Bitcoin transactions. In exchange for their “audit” services, and with a little lucky guess solving math “proof of work” problems, miners can earn lucrative bitcoin rewards.

Blockchain is Bitcoin’s “Vault”

Think of a blockchain as a virtual ledger spread across a network of many computers. Every computer (or “node”) on the network contains an exact copy of the ledger. However, there is no single central owner of the data. Also, no one can access, use or change the data without a unique private key. Hacking the system requires compromising every node on the network – an almost impossible feat.

The “block” part of the arrangement is how the database grows as it collects data. In other words, log “blocks” accumulate, and each block gets a timestamp and a link to the record that preceded it.

Therefore, bitcoin miners oversee the chain of transactions. Instead of using an intermediary agency like a bank or credit card service, Bitcoins rely on miners. Miners assure that transactions are not fraudulently duplicated, as they aggregate transactions into blocks. These blocks generate their own additions to the limited number of bitcoins – currently at 21 million.

  1. VPN Basics: What It Does

When a person connects to the Internet through their ISP, their data passes through the routers to reach the destination of the connection. The ISP can view and monitor the user’s activity through his connection. In a sense, logging into the Internet without a VPN is equivalent to using an open end line.

Closing this line is VPN, or Virtual Private Network. The VPN creates a secure point-to-point tunnel between the client and the provider. VPN provides online privacy and security. It unblocks or bypasses restricted content (censorship and tracking by the government, for example).

Also, VPN connections can allow the user to hide the connection location as if they are in a different country. The VPN achieves this by encrypting your internet connection and bouncing somewhere else through an external VPN server. In short, it replaces or hides a user’s IP address, which is the key to tracking a user’s online activity.

To access the VPN services, the user needs to register with the VPN provider. The provider downloads the software to access its remote servers. Some VPN services are free; Others are paid, premium options.

Free VPNs usually come with bandwidth limitations and a maximum operating speed. You may even have to put up with annoying ads or risk using your data in ways you didn’t expect. Paid VPN services provide a distinct risk environment for the most secure and powerful Internet experience. According to a report by Surfshark, one of the main reasons to use a VPN when making bitcoin transactions is the fact that the VPN encrypts your data making these transactions nearly impossible. Moreover, by encrypting the traffic, it protects you from de-identification attacks that rely on tracking a user’s IP address and linking it to a bitcoin transaction.

  1. If Blockchain is Secure, Why Rely on a VPN to Protect Bitcoin Transactions?

Blockchain provides cryptographic protection, but once the access key is hacked, hackers can get in. A VPN adds another level of security and anonymity at the entry point. While the Blockchain is distributed and secured, once Bitcoin is stolen through scams or phishing, for example, it is gone forever.

Online cryptocurrency exchanges have been raided with phishing and hacking. For example, according to Coindesk, a Japan-based cryptocurrency exchange was hacked in 2018. They lost about $60 million in cryptocurrency, including nearly 6,000 bitcoins.

Why Crypto Miners and Bitcoin Traders Need a VPN

Bitcoin owners can fall victim to other security risks with cryptocurrency:

  • Hackers can spread trojans to steal bitcoins from offline wallets.
  • Scams offering initial bitcoins are becoming common. Bitcoin entrepreneurs need to be wary of tempting deals for new startups, which can be fake.
  • Fake trade exchanges can be worse than “night-flying” clothes. It can completely disappear. Users should rely on reputable Bitcoin exchanges such as Coingate, a cryptocurrency payment gateway that deals with a variety of cryptocurrencies.
  • Through negligence or technical error, the Bitcoin owner can hack the secure Bitcoin address. Some users have posted their addresses on social media or customer messages. Hackers are on the alert to associate these addresses with the user’s true identity.
  • There is no way to make Bitcoin addresses completely anonymous. This is because blockchain addresses are publicly available to ensure transparency. When a blockchain address is available, hackers can link to the address and target an individual with Cryptojacking malware.
  • New malware known as Cryptojacking is rampant in the wild nowadays. A computer or smartphone with a socket unlocks its own CPU and provides access to everything on the user’s device.
  • Finally, cryptocurrency – specifically Bitcoin – is banned in China, Russia, Bolivia, Colombia and Ecuador. Even those countries that allow Bitcoin to closely monitor online financial transactions, which can be traced through users’ IP addresses.

The point security risks above associated with Bitcoin transactions are exactly why a VPN is the layer of security that Bitcoin transactions need. More reasons to conduct all Bitcoin transactions via VPN is that your Bitcoin trading data becomes encrypted through VPN. The data you send through the VPN service is encrypted in transit.

Warning: Important note about VPNs

VPNs do not prevent computer viruses and malware attacks. VPN users need to understand this important distinction. VPNs keep private data safe from hackers, but they do not have the ability to prevent computer viruses from attacking your data. It is essential to use a reliable antivirus software along with a VPN.


A VPN creates an encrypted stream of information. This stream is anonymous. Cryptocurrency miners and bitcoin traders have an added element of security in a business that has no bypasses. Once someone steals bitcoin, it disappears into cyberspace as an untraceable illicit asset.

A VPN is an extra layer of security and due diligence that Bitcoin users need.

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