It all started when Bitcoin was introduced back in 2008 as the first-ever fully digital currency, which was completely decentralized and wasn’t administered by any government or banks. According to a white paper published by Satoshi Nakamoto, the maximum number of bitcoins was supposed to be limited to 21 million to avoid inflation.
This new currency’s foundation is “blockchain”—since each transaction is grouped into ‘blocks’ when it comes to crypto mining or bitcoin mining. These blocks are then lined up sequentially and connected through a decentralized peer-to-peer network.
There are some dangers to crypto mining as the whole process being high-value is prone to cyberattacks of different kinds. But before we get into that, let’s find out a little about how cryptocurrency works and the dangers a user can face.
How Cryptocurrency Works
If you’ve used a credit card or a debit card before, you’ll know how cash-less financial transactions work. Cryptocurrency works a lot like that. These transactions are made using a peer software called “crypto wallet”. The transactions are encrypted, and once completed, they are broadcast to the network so they can be added to the public ledger.
This “recording of the transaction on the ledger” is called mining. Even though cryptocurrency feels like the coming of a whole new era regarding our relationship with money, there are also potential dangers to these methods.
Let’s talk about a couple of them in greater detail.
Dangers You Can Face in Generating Cryptocurrency
One of the most common dangers of generating cryptocurrency is falling into the ‘e-currency theft’ trap. Hackers and cybercriminals are now targeting transactions and trading platforms. Recently, Michael Marriot, a research analyst, reported an incident where hackers used phishing emails to get coin buyers to send their funds to crypto wallets owned by cybercriminals.
That’s not all; another recent incident resulted in cybercriminals stealing around $500 million during a cryptocurrency exchange. This further solidifies the case for the dangers of cryptocurrency mining and the need for a method for keeping transactions safe.
Why Every Bitcoin Miner Needs a VPN
One of the best ways to make sure that all your cryptocurrency transactions are safe is to make sure that you’re completely anonymous on the internet. This way, no one knows you’re making a transaction. VPN products mask your IP addresses by connecting you to a remote and secure server, making your online activity untraceable.
This means that potential eavesdroppers won’t be able to intercept the transaction because they will not locate your machine. A good VPN service will also help in case you’re using public Wi-Fi to make your transaction—which is already prone to malware, hacking and attacks by cybercriminals.
Another advantage of subscribing to a powerful VPN service is that the entire communication between you and the internet will be encrypted. In other words, even if a third-party does manage to gain access to your data, they will not be able to interpret the meaning because only you will possess the decryption key.
For a cost-effective yet robust and powerful VPN service to provide an extra level of protection to your cryptocurrency mining activities.