One of the guaranteed ways of making money as a cryptocurrency investor is by trading your coins on the various trading platforms such as Coinbase. The Chinese government has been adamant about allowing citizens to get involved in cryptos. However, over the last couple of months we have noticed a sharp increase in the number of people who are actively involved in cryptocurrency trading.
Just how do Chinese people manage to continue trading despite the ban?
Use VPNs and Tether
According to Coin Telegraph, most of the active Chinese digital currency traders have resulted to using virtual private networks (VPNs) to the various platforms that have been banned by the government. One of the main advantages of using VPN is that they are able to conceal their activity online. That is, any prying eye or system cannot be able to tell the website that a particular person accessed.
There is also a significant number of traders who have invested thousands of dollars on Tether (USDT) a digital coin that has gained massive traction online because its value is tied to the value of the US dollar. One of the highlights of this coin is that it is more stable compared to other currencies such as bitcoin because it is not affected adversely by speculation and changes in the cryptocurrency market.
How VPN Works in Cryptocurrency Trading
This is one of the most common questions people ask about the essence of VPN in the cryptocurrency trading world. The VPN is basically software that helps the trader conceal his real location and IP address. The program issues the user with a unique and secure IP address of a country that has no restrictions against cryptocurrency trading. Through that connection, one is able to exchange fiat currency for bitcoin or any other digital currency and vice versa.
Are Traders Getting Profits?
Well, initially there were challenges with the use of the VPN since most people did not know how to make use of the software fully. However, news about the effectiveness has spread across the country and this is a clear indication of the fact that the software is indeed working and helping cryptocurrency traders make a profit online.
It is also important to point out that at the moment, there is little legislation preventing traders from using the VPN and even if the government was to come up with a system that would detect them, rest assured that the companies would develop a system to evade them.
News that Chinese traders are still able to profit from the ever growing cryptocurrency market are encouraging and show that the industry is moving in the right direction. The government also needs to come up with policies that does not cripple the industry but instead support it to the fullest and keep the risks at a minimum.
6,182 total views, 3 views today