Over the last decade, cryptocurrencies like Bitcoin have become very popular. They are the go-to point for financial transactions for many internet users.
However, like every other payment system on the internet, Bitcoin usage can be risky if care is not taken.
Even though blockchain technologies provide a safe and anonymous platform for Bitcoin transactions, adding another layer of security is a call in the right direction. This is only part of the 3 reasons you should use proxies for Bitcoin.
Proxies are a proven essential tool for any project that uses the internet. This is because proxies offer users many benefits, which we’ll cover shortly.
First, let’s dive a bit into Bitcoin and why proxies should be the next thing on your shopping list if you intend to work with Bitcoin.
What Is Bitcoin?
Bitcoin is a decentralized digital currency that relies on a peer-to-peer network instead of banks or governments. To the average user, Bitcoin is just like any other internet banking system that allows them to send and receive cash.
However, behind the scenes, Bitcoin offers its users an even better opportunity to make money for themselves. Bitcoin operates on a shared public ledger known as the blockchain, which contains every transaction processed. This blockchain allows users to verify transactions with specialized computer hardware and receive rewards in bitcoin via what is usually known as ‘mining.’
Why You Should Use Proxies for Bitcoin
As I pointed out earlier on, proxies are very beneficial when it comes to internet use. They ensure security, privacy, and anonymity, making them necessary for internet-related tasks. Let’s look at 3 reasons you should use proxies when dealing with Bitcoin.
Added Privacy and Security
Blockchain technology ensures that your Bitcoin transactions are on a secure connection. However, hackers and other malware can access and decrypt data sent from your computer or phone, which puts you and your money at risk. This calls for an added layer of security.
Here is where proxies come in.
A proxy server is an intermediary between your device and the server you want to interact with.
When using proxies, requests from the user go through a proxy server before routing to the intended destination. This creates the impression that the proxy server made the request rather than the user. Additionally, some proxies provide additional encryption, making the connection more secure.
Anonymity
Even though Bitcoin itself allows users to remain anonymous while transacting on their platform, websites can still trace the transaction back to you. This is because whenever you send a request to a website, you also send details of your device, including your IP address.
This information sent during your requests can be used as a digital print to trace your Bitcoin transaction back to you.
Nevertheless, you can protect your identity by using a proxy server to mask your IP address. Tracing the IP address will lead to the proxy IP rather than your IP address, allowing you to transact anonymously.
Bypass IP Restrictions
Just like most websites, Bitcoin exchange websites expect users to conform to specific guidelines and will ban or block users who flout these guidelines. These rules, coupled with anti-bot technologies, can hinder the overall success of your project.
However, with proxies, you can easily walk around these restrictions. When trading Bitcoin, you can use residential proxies to make your bot appear as a real human, bypassing anti-bot measures.
You can also use a proxy server to mask your IP address and allow you to access the website without risking a ban.
Best Proxy Type for Bitcoin
Nearly any type of proxy works for Bitcoin. However, the best kind of proxy depends on your actual use case.
Let’s look at two types of proxies for Bitcoin and when they are the best bang for their buck.
Residential Proxies
Residential proxies are arguably the ideal option available in the market today. This is because, unlike their data center counterparts, they are IPs of real devices. Residential proxies allow users to surf the internet under the guise of an actual device like a phone or computer. This makes them harder to notice by anti-bot software.
To help you evade anti-bot mechanisms, you should purchase a large pool of rotating residential proxies with unlimited bandwidth. This will offer you several IPs, allowing you to constantly change your identity upon each session or after a set time.
Residential proxies are greater still, thanks to geo-targeting. They are sourced from internet devices across the globe, unlike data center servers limited to specific locations. Therefore, you can pick proxies from a particular area and access content at that location that may not be otherwise available.
Data Center Proxies
As the name suggests, data center proxies are IPs generated in data centers. Compared to residential proxies, they offer slightly faster connections. They are also cheaper, making them the best for low-budget projects.
However, data center proxies can easily be spotted and blocked. This is because they are registered in the names of data centers. Yet, you can still use rotating or sticky data center proxies to change your IPs after a set time or session.
Conclusion
Bitcoin has grown in popularity over the last decade and has become a staple for many folks. However, relying solely on Bitcoin’s safety features can be risky. You shouldn’t risk letting hackers and website owners trace transactions back to you.
Therefore, you should invest in an added layer of security.
Using proxies allows you to send and receive Bitcoin anonymously. Proxies are also a good addition to your Bitcoin toolkit as they enable you to go around IP restrictions.
Now that you know why you should use proxies for Bitcoin, check out Kocerroxy for quality proxies at a stellar price.
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