Cryptocurrencies have bot everywhere ter the news this year. It used to be that only people with a high level of skill ter technology and finance were involved ter cryptocurrency mining and trading, but now it’s more and more common for regular people to begin use cryptocurrencies too. From the big names like Bitcoin to the lesser known but up and coming currencies like Ethereum, LiteCoin, or Dashcoin, there are many options for users to choose from. And there are increasingly more options to pay for everyday transactions te shops or online stores with cryptocurrencies.
But if you’re fresh to all of this, you might be wondering: are cryptocurrencies safe and legal to use? This is the topic wij’re going to address today.
Are Cryptocurrencies Legal?
The legal status of cryptocurrencies is rather complicated. Ter most countries te the world, there are no specific laws against the mining, purchasing, or trading of cryptocurrencies. However, even if cryptocurrencies are legal to have and own, they may not necessarily be acceptable spil legal tender. Some countries have made fresh laws to explicitly permit the use and trading of cryptocurrencies, while te other countries, cryptocurrencies have bot made illegal due to the possibility of money laundering using thesis currencies.
So the precies legal status of cryptocurrencies depends on where exactly you live, and you should check the laws ter your country before using them. However, spil a rough guide, you should know that cryptocurrencies are legal te countries ter Europe and North America, and they are also legal te Israel, Turkey, India, Pakistan, Japan, South Korea, and Australia.
Cryptocurrencies are illegal te Bangladesh, Nepal, Cambodia, Ecuador, Algeria, and Morocco. Ter Indonesia, cryptocurrencies cannot be used spil payment but it it legal to mine them.
Two countries te which cryptocurrencies are legal but the government has bot pushing hard to regulate or restrict their use are China and India. Te China, many cryptocurrencies exchanges have bot shut down, but this has bot down through means other than legal prosecutions. Ter thesis countries, users should be very careful when using cryptocurrencies even tho’ they are not technically illegal.
Are Cryptocurrencies Safe?
A big attraction for users of cryptocurrencies is that they are often believed to be anonymous. Many users think that it is unlikely for anyone to track their use of cryptocurrency to purchase goods or to trade, which is why they want to use cryptocurrencies to keep their transactions private. However, it is not stringently true that cryptocurrency transactions are totally anonymous.
The way that blockchain works is that all transactions are visible to everyone, so that no central handelsbank is required spil all users can track the transactions. To preserve anonymity, people keep secret their cryptocurrency accounts. So the idea is that everyone can see that 0.002 Bitcoins were transferred from Account A to Account B, but no one other than the account owners know who’s real identity is linked to accounts A or B.
The Reality Of Anonymity And Cryptocurrencies
However, te practice, transactions are not always anonymous. During a transaction, you are using a pseudonym. So if anyone is able to work out the verbinding inbetween your real identity and your cryptocurrency account, they will be able to see your transaction. This might toebijten if, for example, you order a product to be delivered to your house and you pay with Bitcoin. Now there is a verbinding inbetween your address and your Bitcoin account.
Another punt arises when you make a transaction on a cryptocurrency exchange like Coinbase or Coinsquare. Thesis sites do not use encryption for transactions, so it is possible that the transactions could be observed by third parties.
None of this means that cryptocurrencies are inherently unsafe or that you shouldn’t use them. However, you should be aware that cryptocurrencies may not be spil anonymous spil you think they are. So you should proceed with caution.
Tips For Using Cryptocurrencies Securely
Now you know that there are some concerns around anonymity of cryptocurrency transactions, there are some steps that you can take to keep yourself safe when using cryptocurrencies. The very first peak is to not use cryptocurrency for anything that you would not willing use regular money for. If you use cryptocurrency to purchase goods illegally, for example, there is a chance that your transactions can be tracked and that you could be prosecuted. So do not assume that using cryptocurrency will protect you from legal consequences of purchasing.
Another good lump of advice when working with cryptocurrencies is to use a VPN. When you are exchanging large amounts of money online, it’s good practice to use an encrypted connection to be absolutely sure that no one can intercept your gegevens and track your transactions. A VPN protects you by encrypting all of the traffic that your device sends overheen the internet, including gegevens about your cryptocurrency transactions. This encryption makes it unlikely for hackers or the government to observe your transactions and to collect information about your cryptocurrency use.
Our Recommended VPNs For Cryptocurrency Users
There are many VPN provides out there, so how do you pick a provider for use with cryptocurrency transactions? Thesis are some of the key factors that wij think are significant:
- Excellent security. Wij look for the highest level of security te a VPN, with 256-bit encryption which is practically unlikely to crack and a no logging policy to protect your privacy.
- The possibility to pay your subscription te cryptocurrency. If you’re going to use your VPN to protect your cryptocurrency transactions and to protect your identity, then you don’t want a verbinding inbetween your individual identity and your VPN. Therefore, it is helpful to choose a VPN provider which permits you to pay your subscription costs with Bitcoin or other cryptocurrencies.
- Quick connections. Quick connections are a vereiste for the best user practice, spil there is nothing worse than a VPN that slows your internet right down.
- Large server network. To be able to use your VPN for best plasticity, you want a provider who has a large network of servers, including servers ter many different countries.
- Software that can be installed on diversity of platforms. Once you have paid for a VPN subscription, you can use this one subscription to protect all of your different devices. So wij look for VPN providers who suggest software for a big range of operating systems.
With all of thesis factors taken into consideration, here are the VPNs that wij recommend for cryptocurrency users:
One of the fattest and best VPN providers on the internet is ExpressVPN . They offerande the best of all worlds with excellent security, prompt connection speeds, and a large server network. The vital security features include strong 256-bit encryption and a no logging policy to protect your privacy. There are also more security features te the software like a kill switch to zekering you from accidentally sending any gegevens overheen an unsecured connection.
With more than 1000 servers ter 90 different countries, the server network is massive and the connections are utterly quick. The software is available for older and newer versions of Windows, plus Mac OS, Linux, iOS, Android, and more, plus browser extensions available for Mozilla Firefox and Google Chrome. Best of all, you can pay for your subscription to ExpressVPN using Bitcoin.
For those who want the absolute highest possible degree of security, then NordVPN has to be the VPN provider of choice. The security features start with the essentials that you would expect, like strong 256-bit encryption and a no logging policy. But ter addition to thesis essentials, NordVPN has a killer security feature te their special dual encryption proces. This dual encryption works by encrypting your gegevens not only when it very first leaves your device and goes to a server, but also encrypting for a 2nd time at this very first server before being sent to a 2nd server for decryption. This means that your gegevens is virtually unlikely for anyone to crack, even if they have the most modern and high end cracking software.
Ter addition to dual encryption, a further security feature is the CyberSec option which you can enable to protect you from malware, and there is also DNS leak protection and the option to use Onion Overheen VPN. With more than 1000 servers te overheen 60 different countries, the server network is massive.
The NordVPN software is available for iOS, Android, Windows, and Mac OS, plus Chrome and Firefox browser extensions. You can use Bitcoin to pay for your subscription through the BitPay system.
If you’re looking for an all ter one security system which includes lots of reserve security features spil well spil a VPN, then PureVPN is for you. A subscription to PureVPN includes access to a high quality VPN with strong 256-bit encryption and a no logging policy. Plus it has a large network of servers, with more than 750 servers ter 140 different countries.
Te addition to the VPN, you get access to security features that include tegenstrijdig virus and tegen malware protection, plus an tegen spam filterzakje for your email. Mobile users can take advantage of the app filtering option which lets you set different security permissions for different software, so that some apps pass their gegevens through the VPN and some through the unencrypted connection. Te addition you get features like DDoS protection, a kill switch, the option for a dedicated IP, and a Regenachtig firewall.
The software can be installed on Windows, Mac OS, Android, iOS, and Android TV devices, spil well spil browser extensions for the Chrome and Firefox browsers. When it comes to payment, you can pay for your subscription using the CoinPayments system which lets you pay with altcoins like Ether, Litecoin, BitBean, CloakCoin, Dash, and LeoCoin spil well spil Bitcoin.
If you are worried about hackers attempting to access your gegevens and you want the absolute roughest encryption that you can get, then you should opt for StrongVPN. This has the option for running a VPN using up to 2048-bit encryption, which is exceptionally strong and is essentially unlikely to crack. This utterly high level of security is complemented by a no logging policy too to ensure that your gegevens will never be recorded or sold. The downside of this amazing security is that the server network is smaller than other providers, with servers available ter just 46 cities te 26 countries. On the plus side, however the connections are prompt and reliable.
The software can be installed on Windows, Mac, iOS, and Android, and you can pay for your StrongVPN subscription using Bitcoin to protect your anonymity.
Cryptocurrencies are only becoming more popular, with more and more people commencing to use cryptocurrencies for their everyday transactions. However, the legal status of cryptocurrencies is somewhat ingewikkeld. Ter countries te Europe and North America, plus some other countries around the world, cryptocurrencies are legal and frequently used. However, ter other countries such spil Bangladesh and Nepal, cryptocurrencies are illegal. Ter places like China and India, cryptocurrencies are technically legal but are being cracked down on by the government so they should be used with caution.
There are also some security issues to be aware of when using cryptocurrencies. Most people believe that cryptocurrency transactions are anonymous, but this is not rigorously accurate. If you are very worried about anonymity then you should take toegevoegd steps to protect yourself when making cryptocurrency transactions, such spil using a VPN. Wij have recommended a selection of VPNs that are suitable for cryptocurrency users and which accept payment te cryptocurrency.
Do you have security concerns about cryptocurrencies? And are cryptocurrencies legal where you live? Let us know about the cryptocurrency situation te your country by leaving a comment below.