Learning the ins and outs of cryptocurrencies is not for the faint of heart. As if that weren’t enough, running around purchasing cryptocurrencies on the insane number of exchanges and wallets available out there, runs the risk of removing the veil on your anonymity. 

Without getting into the complexities of how someone can locate your Bitcoin purchases, suffice it to say, it can be done and has been done to many a crypto trader.

So is using a VPN when making Bitcoin transactions a good idea?

Should I Use A VPN To Buy Bitcoin?

Yes, you should use a VPN to buy Bitcoin. A VPN will keep your IP address, location, and traffic behind an extra layer of security, which helps to keep your Bitcoin secure. A VPN will help to secure your crypto transactions and reduce your risk of being hacked and your data being stolen.

Purchasing crypto isn’t the anonymous and secure transaction that many believe it to be. There are over 100 different merchants that accept Bitcoin transactions and nearly 50% will leak your data in one form or another. 

The same holds true for shopping with Bitcoin, as alluded to above. In fact, the level of anonymity drops, even more, when you are using Bitcoin to make purchases.

According to MIT Technology Review, your transaction is recorded when you purchase with Bitcoin.

That means that both the time and the amount of your transaction are not only recorded but, thanks to web trackers and cookies, that data is leaked.

You’ve probably noticed the interesting way that whatever you are looking at online is suddenly an advertisement on Facebook. 

It’s almost as if the ether is sending you a sign to buy this product. You looked at it, after all, and now you’re seeing it advertised on Facebook and other social media sites.

The “ether” may be too innocuous a word for it, however, the reason is that your data, in terms of searches and purchases, is leaked and shared online. 

When it comes to purchasing something with Bitcoin, the transaction amount and the time that the transaction took place are both recorded on that website, a website that probably has web trackers and cookies. That means that two, important pieces of information are now available. 

First, the time of your transaction is available, and second, the amount of your transaction is available.

Those are two important pieces of information that someone could use to locate your purchase on the blockchain.

There is a whole lot more that goes into it but we’re keeping it simple to save space and time. 

The most important thing to understand is that a VPN keeps that kind of information secret, rather than immediately available and leaked to other sites that are itching to get a hold of your money as well.

Which VPN Is Best For Crypto Trading?

NordVPN is one of the best VPN services that you can use for crypto trading and purchasing with crypto, like Bitcoin. The biggest reason is because of some of the things that we discussed above, NordVPN blocks because they have a “no-logs” policy.

That means your purchasing information on a website is strictly your information and isn’t recorded and no copies of your data logs will ever go anywhere.

The level of encryption that NordVPN uses is an AES-256-CBC cipher, which is a standard embraced at the highest levels of the US government. 

NordVPN also accepts Bitcoin as a payment for its services, so you can use Bitcoin in your day-to-day transactions on top of paying your monthly subscription service to NordVPN with Bitcoin.

If you want to go with something that is a bit smaller, PrivateVPN is a good choice and not quite as expensive monthly or annually.

Like NordVPN, PrivateVPN also has a no-logs policy, so your data is not going to be saved and leaked to other partners. 

Since this VPN is located in Sweden, they are adherent to the laws of the land and Sweden has a law against data retention.

So, no matter what, your data cannot be saved on a server, at least not for long before PrivateVPN has to dump it. 

PrivateVPN also accepts Bitcoin as a payment for the service that it provides.

Should I Use A VPN With Coinbase?

There have been some internal and external rumblings when it comes to using a VPN with Coinbase. It’s not that Coinbase rejects VPN usage with its system so to speak, just that it can sometimes cause problems. 

For instance, when you are using a VPN, your IP address is hidden through the use of another IP address chosen at random. This creates a conflict with Coinbase as it has been alleged that Coinbase’s system will revert your location to the location reflected by your IP address when you log in. 

Of course, when that occurs, you can no longer access your wallet because you’re not in the country that you entered when you signed up for an account with Coinbase. 

Now, you have to take this as a warning rather than an affirmation as this is an issue that is frequently complained about in forums, rather than something that has widely been reported on. 

If you want to use your VPN when accessing Coinbase, just exercise caution, especially since the forums preach a single constant which amounts to customer service oblivion when it comes to fixing the problem.

Related Article: Can My VPN Be Blocked By My ISP? (What You Need To Know)

Will A Free VPN Do For Buying Bitcoin?

No, a free VPN used for purchasing Bitcoin or using Bitcoin to make purchases is not the way to go. The problem with free VPNs is that they are notorious for lacking the very security protocols that they advertise. 

Free VPNs also come with several restrictions, though some are worse with these restrictions than others. 

  • Limited browser activity
  • Throttled network speeds
  • They keep your data logs
  • Questionable security practices
  • It may not be encrypted at all
  • Don’t inform you what their security protocols are

As you can see, there are a lot of reasons to stay away from free VPNs, at least when it comes to making Bitcoin transactions, or any kind of cryptocurrency for that matter.

If all you want to do is mask your IP address occasionally and keep your public email browsing private, then a free VPN may be okay for you. 

However, if you want to avoid the numerous throttling mechanisms placed on you, and receive a free and open disclosure as to the VPN’s security protocols and data log procedures, you should definitely to go with a paid VPN.

What To Look For In A VPN For Buying Bitcoin?

Two of the most important things that you want from a VPN are the understanding that your data logs are not maintained anywhere and that your browsing and transactions are securely encrypted and protected.

Here are a few features to watch out for:

  • Phishing protection
  • Secure and hidden crypto transactions
  • It masks your IP address
  • Traffic obfuscation
  • Kill Switch
  • Speed
  • They dump your data logs

VPNs are notorious for slowing down your speeds and that’s something that you want to avoid when dealing with any kind of cryptocurrency. It may not be such a big thing if you are just making a transaction by paying with Bitcoin, but it’s not okay if you are day trading crypto or switching hot wallets online. 

You obviously want your crypto transactions, regardless of what kind they are, hidden by keeping your crypto shenanigans hidden from your ISP (Internet Service Provider). Hiding your IP address and obfuscation features also allow you to browse, trade, and purchase crypto that may be geo-blocked in your country. 

The kill switch feature is a must-have as well. If your VPN goes down for any reason (it’s like getting pantsed in the middle of Times Square), the kill switch shuts down your internet connection. No matter what happens, if your VPN is no longer protecting you, it still is with a kill switch. 

No matter what, any VPN can be compelled to give up your data if, and only if, they keep it. One of the only VPNs that have a proven record that shows they have a strict no-logs policy is NordVPN, with hundreds of pages of court documents showing that they are serious about ditching your data and not holding onto it.

What Other Precautions Can I Take To Stop My Bitcoin From Being Stolen?

To guard against your Bitcoin being stolen, you should use a secure VPN, a dedicated phone or computer to trade in Bitcoin, a secure cold wallet to store your cryptocurrency, and a web browser and search engine that doesn’t collect too much of your private data and an exchange service that doesn’t require too much of your personal data.

Use A Trusted VPN

One of the most important things is to use a trusted VPN, such as NordVPN, ProtonVPN, ExpressVPN, etc. You should be able to trust that the VPN you use implements the securest technologies and will not share your information.

It’s even better if your VPN provider accepts Bitcoin as a payment method. That way, when you’re paying them in Bitcoin, you don’t have to give over as much information as you would when paying with a credit card.

Use A Dedicated Device And Email For Bitcoin Transactions

To keep your private data separate from your Bitcoin business, you should use a separate device and a separate email address to trade Bitcoin. You could use an old phone or laptop and a dedicated email to conduct your crypto activities. Your VPN provider may offer a secure email address, such as ProtonMail, which is offered by ProtonVPN.

Use A Cold Wallet

Another great way to keep your Bitcoin safe is to store it in a cold wallet, which is a physical device that you keep with you. Most of them are about the size of a thumb drive, though some others resemble credit or debit cards. 

These physical drives are locked with a private key that only you know and since your Bitcoin is offline, no one can get their hands on it. If the cold wallet is stolen, it won’t matter because the thief can’t unlock it without the private key, which only you have.

Use A Secure Web Browser And Search Engine

And for even more added privacy, I’d recommend you use a web browser and search engine that isn’t too shady with your data. Brave Browser and DuckDuckGo are far better options than Google Search and the Chrome Web Browser.

Use An Exchange That Doesn’t Require Too Much Personal Data

Keep in mind that all the precautions in the world won’t help if you buy Bitcoin from an exchange that collects too much personal information from you.

One of the best exchanges you can use is Hodl Hodl as they require only an email address.

All Things Considered

There are too many advantages of using a VPN for all of your crypto transactions to ignore them. This is especially true if you go with a high-quality, well-known, and documented VPN service such as NordVPN. 

If you combine a VPN with a cold storage wallet, you will have the most battle-hardened protection for your Bitcoin available anywhere.