Usually, people access sites of all types without properly protecting their identity. Even on anonymous tabs, your IP is still located.
VPNs help mask your information, and they are used for many purposes that require genuine anonymity. Check Popular VPN for Samsung Laptops.
In this article, we will talk about how VPNs relate to crypto mining.
Does your mining become safer by using a VPN? Does it affect your performance on a blockchain? Let’s check all of that.
Can you mine with VPN?
Yes, it is possible to mine cryptocurrencies with your preferred VPN service. In some cases, it is recommended that you do that.
In case you are not familiar with the term, VPN (Virtual Private Network) is a private network built on the infrastructure of a public network.
This is a way to connect two computers over a public network such as the Internet.
Instead of carrying out this procedure through dedicated links or packet networks, such as Frame Relay and X.25, the internet infrastructure is used to connect distant and remote networks.
The Virtual Private Network (VPN) has the great advantage of being much cheaper than dedicated links. Furthermore, the Internet is present all over the world with hotspots spread everywhere.
VPN networks are widely used by large companies, especially in companies where employees work remotely, whether on the streets or in the home office system, to connect to the internal structure while away.
Ordinary users also take advantage of VPN networking technology to build virtual private networks.
By encrypting information and communications between hosts on the private network, it is possible to considerably increase the confidentiality of the data that travels over the network.
Through the tunneling system, data can be sent without other users having access, and even if they do, they will still receive it encrypted.
Therefore, it is essential that the devices responsible for taking care of the VPN network must be able to guarantee the security and integrity of the information and data that are transmitted.
Should you use a VPN when mining crypto?
There are pros and cons to using a VPN when you are mining crypto. We will dive deeper into those later, but giving a short glimpse of the matter can help answer the question at hand.
A VPN can increase your latency (but a good VPN shouldn’t), which damages your profitability when mining.
On the other hand, a VPN can help you protect your location against possible hackers that might want to know who are the people mining.
It is rare for such hack attacks to happen. If you look through the internet, you will see many miners making fun of such a possibility.
However, they also make fun of that because they take one precaution: not to use a personal computer to mine.
In case you do not know, it is always preferable that you have a dedicated machine only for mining.
This should be no secret and sounds obvious, but newbies can benefit from this being said out loud.
Just think about this: your mining rig will be functioning 24/7, running hot all the time, and consuming CPU, GPU, and RAM to validate blocks.
You shouldn’t overload the rig with extra tasks such as navigating online or any other thing.
However, if you turn your mining off during some parts of the day and then use the machine as a personal computer, risks start to appear.
In this case, your machine will have crypto addresses as well as your personal information (say, your Facebook is logged in, or your Instagram, LinkedIn, etc.).
If you are this type of miner, a VPN is a must as the best is to protect your identity.
Pros of using VPN for mining
- Protect all your data from eventual attacks
- Protect against cryptojackers
- Prevent data throttling in case your internet service provider limits your network
- Escape bandwidth throttling: this happens when your provider or another person in control of your network forces your speed down
- Mine on any pool, regardless of location
Cons of using VPN for mining
- You might get a slower speed. This depends on your connection as well as the VPN service you buy, thus needs to be tested.
Can you use a VPN to buy Cryptocurrency?
You should use a VPN when buying or selling crypto, as well as buying stuff with your crypto.
While mining can be done without a VPN (but we recommend it if you are using the same computer both for personal matters and mining), commercial activities involving crypto coins should always be backed up by a VPN.
Even though your data is encrypted in the blockchain and, a priori, no one can see who you are when you are doing transactions, eventually, someone could trace your IP and learn about your identity.
With a VPN, your data has a new layer of protection, so it becomes harder for anyone to discover who is the person behind an alphanumeric address.
Some blockchains always generate a different address for users when they include new transactions on the ledger.
Some don’t. If you are trading coins that give you a fixed alphanumeric address (such as Bitcoin), then a VPN is now your best friend.
3 Best VPN to use for mining (and trading)
If you want to protect your data while mining, you need a VPN that can also deal with latency instead of making it even higher. We selected three great VPN providers that are worth trying.
When you enter ExpressVPN’s site you will see the advertisement that it is the best VPN for gaming.
Just as with gaming, mining cryptocurrencies requires you to have low latency.
VPNs sometimes help with that (and other times they mess up, so be careful if you look for other VPN services!), and this is the purpose of ExpressVPN.
ExpressVPN is easy to set up and its app allows you to test your speed. That way, you can choose the perfect server to connect and start mining with low latency, so that you don’t get stale shares on pools.
NordVPN also stands among the fastest VPN you can contract right now. It is very used by gamers because of its reliable services.
It comes with a small reduction in upload and download speeds (around 24%), but no impact on latency whatsoever.
Even though upload and download matter for both gaming and mining, latency is something you should worry much more about.
NordVPN protects your data while also sending your shares in time so that you get paid by the pool.
This is a popular VPN provider used by many miners and is highly recommended if you are starting to mine and feel like extra protection would come in handy.
TunnelBear, just like the other two VPNs already recommended, provides dynamic IP. With a dynamic IP, it is harder for anyone to track you down, as your IP keeps changing.
More than that, TunnelBear is easy to use and you can quickly set everything up. It counts with strong encryption and doesn’t reduce much of your internet speed.
For more options check out vpnonline.com.
Best Crypto to mine with VPN
Since you will already be paying for a VPN to protect all your data when mining, it is good to mine very profitable coins.
Sometimes “best” might mean different things, but here it is pretty straightforward.
If you are going all the way in mining that you are even acquiring VPN, you should consider Ether.
It is a revolutionary blockchain (the network is called Ethereum, and the coin Ether) that has an unquestioned value and shall thrive for a long time.
It requires you to have a good GPU (or more than one), but it is worth mining Ether, as it is always on top of market capitalization.
- Algorithm: Proof-of-Work
- Hashing Function: Ethash
- Block Mining Reward: 3.2 ETC
- Block Time: 13 seconds (average)
If you’re looking for a excellent option to mine, perhaps you should consider KDA. Learn all about KDA mining in our comprehensive guide.
RavenCoin is more recent than Ethereum, but it has consolidated as one of the most profitable coins in the market and shows great promise for the future.
Besides its cool name, it is also easy to mine, easy to store, and counts with instant, seamless payments.
RavenCoin’s asset transfer works similarly to Ethereum and Bitcoin, one more reason that made it very popular.
With all this in hand, the RavenCoin developers created one of the biggest names in the crypto world, with a huge capitalization right now.
- Algorithm: Proof-of-Work
- Hashing Function: X16R
- Block Mining Reward: 5,000 RVN
- Block Time: 1 minute (average)
We have already recommended Monero in other articles too. The thing with Monero is that it has a great market capitalization right now, and it is also easy to mine, being possible to mine it even with low-end computers.
Not only that, but it is also ASIC-resistant, meaning that you won’t see the network become a fully specialized activity as it happened with Bitcoin and other coins. Monero offers profit with accessibility.
- Reward: 2.15 XMR/block
- Algorithm: Proof-of-Work
- Hashing function: CryptoNightR
- Block time: 2 minutes (average)
Mining and making crypto transactions with VPN are recommended. Mining is okay without a VPN service, but making transactions without it is a very worrisome situation, as you are exposing many details for anyone to check.
In this article, there is enough info for you to decide if you want to go with a VPN for mining, as well as which VPN to pick.
If you want to try any other service (as there are plenty), remember to choose one that gives you dynamic IP instead of a static IP. Dynamic IP protects you more.