Unlike cryptocurrencies which are built with unbreakable security, exchange platforms like Binance are just websites and web apps. Using a VPN for Binance, one of the most popular crypto exchange platforms worldwide will guarantee your privacy and safety while trading, buying, and selling crypto.
Although you could use a VPN for Binance to access the exchange from the US, when you enroll in Binance, you’ll have to pass Know Your Customer (KYC) policies which won’t make it so easy. Use a Binance VPN only if you are on the move and frequently using public networks.
In this post, we’ll show you the best Binance VPNs on the market. But first, we’ll dive deep into the measurements and regulations taken by Binance to ensure customers are who they say they are and that they come from where they say they come. Then we’ll show you which VPN for Biance can help you trade cryptos fast and secure.
1. Are Crypto Exchange Platforms Safe?
Crypto Exchange platforms are regulated, insured, and safe— at least is what they tell you. When dealing with your finances, you’ll need to be extra careful and do the proper research yourself.
Crypto exchange services are generally primary targets of hacks and attacks because they have billions of dollars worth in cryptocurrencies. While most crypto exchange platforms take the necessary precautions to prevent thefts, are regulated by FCA (and other institutions), they are not immune to hacks.
In 2014, around 850,000 Bitcoins (about $450 million back then) were stolen from Mt Gox. The company declared bankruptcy shortly after the incident. In 2019, the Binance Cryptocurrency Exchange was hacked, cyber thieves took $40 Million in Bitcoin, including two-factor user codes and API tokens. KuCoin, another popular and extensive cryptocurrency exchange, was also hacked in 2020. This time hackers took close to $250 million. According to Chainanalysis, hackers stole ETH and ERC-20 tokens and used DeFi protocols to launder stolen funds.
Although Cryptocurrency exchange platforms such as the ones listed above are insured and can reimburse stolen coins to their owners, nobody wants to be in such a position of vulnerability.
Many cryptocurrency security experts recommend:
- If an exchange seems they lack security measures (including KYC and AML), it is best to avoid it.
- Do not keep any digital currency holdings on digital currency exchanges. Or at least use multiple crypto exchanges to spread your purchases.
- Moving your crypto holdings out of an exchange’s wallet into a “cold” (airgap or offline) wallet is sometimes the less convenient but the most secure.
But still, if you are trading cryptocurrencies, you can’t easily stay away from an exchange. You need to access their website or web app to buy, sell, and trade using fiat currency or other cryptocurrencies.
2. Do you really need a VPN for the Binance crypto exchange?
Virtual Private Networks (VPNs) existed before any cryptocurrency was ever even imagined. VPNs were simply designed to extend local networks virtually to other geographies. In the finance world, banks use massive VPNs to connect to their branch offices distributed across the country to their central bank using ISP and Internet infrastructure. VPNs create an encrypted tunnel between you (VPN client) and the VPN server, then route the traffic to the destination (Crypto exchange service).
Bear in mind that if you understand how other cryptocurrencies work, including Ethereum, Bitcoin, etc., how to use them properly, and practice privacy and security practices (as shown in the previous section), you do not really need a VPN. For instance, enforcing SSL/TLS (HTTPS) on your browser is a good start; Also, making sure you configure two-factor authentication (2FA), ensure your computer is Malware-free, and know how to identify phishing scams are also crucial.
However, there are benefits to using a VPN for Binance.
- A VPN encrypts your traffic. No middle man, including coffee shop hackers, your neighbor hacker, ISPs, or the government, will be able to monitor and intercept your traffic. They will not know you are visiting a crypto exchange service. Nobody will be able to read your VPN-enabled traffic as all data-in-transit is 100% encrypted.
- A VPN bypasses geo-restrictions. Just because you can access an exchange website, it doesn’t mean the exchange platforms are available in your country and even state. Federal governments (and states) are in the process of determining how they want to deal with cryptocurrencies from a legal and tax position. For instance, popular exchanges like Binance, Kraken, Kraken, Crypto.com, Bisq, or Coinbase are not available for trading, selling, or buying in every country. When you connect to a VPN, you are “virtually traveling” to where that VPN server is (bypassing all geo-restrictions).
A word of caution here: exchange websites are required to comply with AML (Anto-Money Laundry), which requires you to pass Know Your Customer (KYC) policies. If you are enrolled in a crypto exchange that requires KYC (which most popular exchanges are now), your data is linked to transactions, so there is not much privacy a VPN can provide here (except from the first point).
3. Should you VPN to use Binance in the U.S.?
Binance is a Chinese-based crypto exchange service with one of the lowest fees in the market (only 0.1%). If you are a Binance user (or want to be one), you might already know that Binance is available anywhere but in the U.S. (due to U.S. regulations). If you attempt to access Binance.com from the U.S., you will get the following message: “Binance is unable to provide services to U.S. users…” Although you will be able to access Binance.com, you won’t be able to access its services. To use Binance in some states within the U.S., go to Binance.us. However, bear in mind that Binance.us is run by a completely different company (BAM Trading Services) which is heavily regulated, limited, and its fees are more expensive.
As already mentioned previously, if you have enrolled in Binance, then you have already performed the KYC process, where you need to take a picture of your face and send your ID for verification. They match your submitted data, along with your country, and apply face recognition.
How to use Binance in the US? As stated above, there is a binance.us website but is not the same. To use Binance in the US, you can use a VPN. Simply connect to a VPN server outside the U.S. (where Binance is allowed) and visit Binance.
Can Binance detect your IP over VPN?
If you are logging from the US to Binance with a VPN server (from anywhere in the world), the website will see you as connected from somewhere else, and thus grant you normal access. Since a VPN masks your IP, these third-party services have no way to track your location and activity.
4. Best VPN for Binance.
So let’s say you are enrolled in Binance, have passed their KYC, and are using the Binance wallet. You may want to use a Binance VPN as a means for added security between you and Binance, especially when you are connecting to untrusted networks. As a recommendation, never use a free VPN service; look for VPNs with a zero-logs policy, large distributed networks, and features like Kill switch, Tor over VPN, and crypto as a payment method.
SurfShark is a cost-efficient VPN service provider based in the British Virgin Islands, a country with very friendly data retention laws. This country’s jurisdiction allows a VPN service to provide a true no-logs policy. SurfShark does not keep your traffic sessions, history, etc. Plus, Surfshark has more than 3200+ servers distributed across 65 countries. Surfshark allows you to pay with Bitcoin.
ExpressVPN is the largest premium VPN service that is also based in the British Virgin Islands. It provides a detailed zero-logs policy, best-in-class encryption, kill switch, split tunnel, private DNS, TrustedServer technology, and more. ExpressVPN provides VPN servers distributed in 160 VPN server locations in 94 countries. The VPN service allows you to pay with different currencies, including Bitcoin.
NordVPN is based in Panama, another country with no mandatory data retention laws and outside the international surveillance alliances like the Five Eyes or Fourteen Eyes. It is probably the most popular VPN in the market, with over 12 million worldwide users. The VPN uses AES with 256-bit keys— a military-grade encryption standard. In addition, it also provides a strict no-logs policy, the kill switch, split tunnel, Onion over VPN (Tor over VPN), and more. NordVPN is one of the best VPNs for Binance because it has over 5457 VPN servers across 60 different countries. NordVPN accepts Ethereum and Bitcoin.
CyberGhost is an affordable VPN service based in Bucharest, Romania, a country with friendly data retention laws and outside the international surveillance alliances like the Five Eyes or Fourteen Eyes. This means they have a trusted no-logs policy. CyberGhost is used by more than 15 million users globally. Their VPN client is supported by many platforms and devices. Their VPN server network ranges from 7900 VPN servers located in 90 different countries. CyberGhost accepts Bitcoin.
In this post, we learned that if you know how to trade safely using different well-researched exchanges, know how to use a cold wallet, and can use secure web browsers (with 2FA, anti-phishing, and built-in encryption), you can do fine without a VPN. But still, connecting to Binance via a VPN can help you strengthen your privacy and security standpoint. Especially if you are connecting from untrusted networks— a VPN becomes an essential security tool.
Should you use Binance in the US with a VPN? If you have passed the KYC in your country (outside the US) and are traveling to the US for some time, then yes, you can use Binance in the US with a VPN. Taking into account, that you are not a US user.
So which VPN for Binance? Try the VPNs described above (SurfShark, ExpressVPN, NordVPN, CyberGhost); these VPNs are great options for the price.