Jasmine Birtles
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VPN Mistakes That Put Your Crypto at Risk—and How to Avoid Them
Moneymagpie Team
6th May 2025
Cryptocurrencies have become widely used and accepted by general users and by financial institutions. Now, when there are many more crypto holders and traders, security measures have become even more important than before. Most crypto holders use VPNs when trading crypto or accessing their wallets. However, this isn’t always enough as a security measure.
In this article, we’ll go over some of the common mistakes that crypto users make in regard to their VPNs. Some of these are easily avoided just by being aware of the mistake or by choosing the right VPN service.
- Using Free VPNs
- Connecting to Unreliable Servers
- Not Enabling a Kill Switch
- Logging into Crypto Platforms without a VPN
- Using VPNs with Known Issues
- Using VPNs that don’t support Strong Encryption
- Not Using VPNs on Mobile Devices
- Not Rotating IP Addresses
- Assuming VPN Alone Is Enough
- To Sum Up
Using Free VPNs
There are a lot of free VPNs out there, and they provide an enticing offer, such as getting some of the VPN features for no charge at all. In some cases, those VPNs are good enough, as they provide the basic service of changing the user’s IP.
It’s also important to note that these VPNs find other ways to use since they are not charging for their service. The most common way is to sell the data collected from their users. It can be a harmless practice, but when it comes to using it to make crypto purchases, it can also be dangerous.
How to avoid this mistake: Only use reliable VPNs that charge a subscription.
Connecting to Unreliable Servers
Some VPNs automatically choose servers to which they’ll connect. Sometimes, these servers aren’t reliable and safe, and they may be overloaded. It may not be a security risk, but it can affect the quality of service for the users.
Using such servers could lead to IP leaks, slower speed, and failed connections. This can be frustrating for the user, but it can also cause issues with crypto transfers if a problem arises while the funds are transferred.
How to avoid this mistake: Use VPNs that allow you to select your own servers.
Not Enabling a Kill Switch
A so-called kill switch is one of the most important security features VPNs have. Simply put, it cuts the internet connection if the VPN connection is lost for some reason. That way, you can’t be connected to the internet without a VPN as protection.
Almost all VPNs have this feature, but some require the users to activate them on their own. Some users aren’t aware that the switch even exists, or they neglect to turn it on before using a VPN. It’s an easy mistake to remedy, and the kill switch provides a valuable additional layer of security.
How to avoid this mistake: Always turn on the kill switch once installing a new VPN service.
Logging into Crypto Platforms without a VPN
Crypto platforms are easy enough to use, even for novice crypto owners. Platforms also offer explanations and tutorials on how they work. Therefore, a platform such as the one found here explains how to buy Solana and stay safe. However, these tutorials don’t always cover all the potential security concerns.
For instance, many users only use a VPN when they plan to buy, sell, or transfer crypto. It’s a mistake since every time you use crypto platforms without a VPN, even if you’re not making a purchase, your data may be vulnerable.
How to avoid this mistake: Turn on the VPN before logging into a crypto platform.
Using VPNs with Known Issues
Some VPNs are better than others, as is the case with any product. VPNs that are known for their security breaches and technical issues probably deserve that reputation, and it’s best to avoid them. This doesn’t, however, mean that a VPN can’t change and improve.
VPNs usually come out with updates after they’ve had a security breach, and those are used to fix the issues that have led to the breach in the first place. Take the time to update the VPNs regularly, especially if they’ve received a security alert.
How to avoid this mistake: Follow VPN resources to get a feel for which VPNs are trustworthy.
Using VPNs that don’t support Strong Encryption
Most users don’t know the difference between encryption types and protocols and feel that turning on a VPN is enough protection. Since crypto transfers can be a sensitive security moment, it pays off to learn about the process behind VPN protection and, therefore, choose a VPN with the proper encryption.
The best way to go is to choose VPNs that have AES-256 encryption and support for protocols like OpenVPN, WireGuard, or IKEv2. VPNs that aren’t open and transparent about what kind of transaction protocols they are using should be avoided.
How to avoid this mistake: Use only the VPNs with the highest encryption standards.
Not Using VPNs on Mobile Devices
Crypto platforms are convenient, and they can be used on both mobile and desktop devices. This allows users to trade and make purchases with crypto on their phones and tablets, regardless of where they are. However, the same level of care should be paid to security on mobile devices.
Some users forget to install a VPN tool for their mobile devices, and some forget to turn it on and use it when trading on their phones. It’s an easy mistake to avoid, as most VPNs have a mobile version that works just as well as the desktop one and provides the same level of security.
How to avoid this mistake: Don’t forget to install and use a VPN on your mobile devices.
Not Rotating IP Addresses
Repeatedly using the same IP address when making crypto trades makes it more vulnerable. Some crypto platforms also have extensive security practices and may even block users who log in too often with the same IP. VPNs are a solution to this, as they can rotate and change IPs.
Some VPNs do this automatically, and others require the user to activate the service. All allow users to change the settings further and decide how often they want to change the IPs. The best practices depend on how you plan to use the service and what your privacy concerns are.
How to avoid this mistake: Use the VPN feature, which allows you to automatically rotate the IP addresses.
Assuming VPN Alone Is Enough
VPN is a valuable tool that makes handling crypto platforms much safer. However, it isn’t the only tool or safety measure you’ll ever need. Other tools, such as antiviruses and safe crypto wallets, are also recommended. It also helps to have good “online hygiene” and not click on links you can’t trust. There’s no tool for that, and it’s a matter of self-discipline.
All of the devices and apps should also be regularly updated in order to keep them safe. This doesn’t need to be a choir, and many day traders make it a part of their routine as an additional safety measure.
How to avoid this mistake: Create a whole security system rather than relying on VPNs only.
To Sum Up
There are some common VPN mistakes when working with crypto platforms. These can lead to leaks, poor performance, or actual hacks and losses. The best way to avoid most of them is to be aware of them and to practice common sense when using both VPN and crypto platforms.
Don’t forget that VPNs aren’t the only security tools at your disposal, so try to stay educated about the industry.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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