Why and how to use VPN with bitcoins?

[marnie]

Why do people use VPN with bitcoins?
And in what scenarios? I searched but nothing came up, rather than how to buy VPN with bitcoin.
I haven't used bitcoin yet, but plan to soon, so I'm not 100% certain how it works. But do I use
VPN to log into my account? Use VPN when I plan to send or receive money? etc.

[Roxyoursox]

I am new to bitcoin but I am familiar with VPNs and wanted to ask specifically what your concerns are? While logging into which accounts? In combination with a firewall and a proxy a vpn system can totally anonymize your connection however I believe that your .dat file atleast to my knowledge is stored on your local machine so losing it would more so be a danger from things like key loggers or trojans. Anonymous browsing would not prevent such a thing from occuring if your downloading risky files or visiting dangerous sites. Correct me if I am wrong though please because I am sure there are people on here much smarter than I. I would use a anonymous system for things such as logging into anything that utilizes your credentials that could be possibally manipulated for gain like btcjam or paypal but as I said I really do not know for certain.

[marnie]

Welll that's what I'm asking I mean. Why should I be using one, and in what cases, like all the time, etc.
If I don't use one, how exactly is it dangerous, how can someone get my IP, etc.

[Roxyoursox]

Well lots of sites log your IP and your IP can also be sniffed off your WAN from people in your general vincinity or even through emails you have sent. If you want to protect your identity I would use a system like I mentioned before hand at all times your connected to the internet however just having your IP address isnt a massive deal security wise its only a concern if you do not wish to be known, but I would make certain your router is secured very well. Most sites that are reputable use https connections which make them a lot safer I would advise looking for the lock icon and https:// in the begining of urls your using sensitive information on. Also your email address can be a big gateway into every thing else if you use the same one to log into all your accounts I would highly advise using different passwords for every thing and if your really super concerned using a different email address for solely for things like paypal or any form of online wallet say a btcjam like site I know a lot of btc gambling sites store coins for you on site. I think that those accounts would be the ones that would be targeted. Hopefully someone else can step in here and give you a more definitive answer thats all I know. GL

[slardar]

Most sites that are reputable use https connections which make them a lot safer I would advise looking for the lock icon and https:// in the begining of urls your using sensitive information on.

Make absolutely sure the certificate fingerprint matches -- use something like convergence and ssl observatory. There are some malicious people

[marnie]

But I'm saying I don't want to use VPN 24/7.
Is there a specific time I should be using it with bitcoins that are very important?

[MoonShadow]

Welll that's what I'm asking I mean. Why should I be using one, and in what cases, like all the time, etc.
If I don't use one, how exactly is it dangerous, how can someone get my IP, etc.

One reason is to defend yourself against a 'honeypot' website, offering services in bitcoins in order to capture your IP data for some future government crackdown on users.  My main client runs completely over TOR, to the same end, and doesn't respond to connection requests from unknown clients.  It's competely "quiet", and wouldn't even be counted in those network connection maps.  This is a bit paranoid, I admit, particularly since I can be identified by this very website forum's logs; but it's astronomically unlikely that anyone is going to be able to use any kind of network analysis techniques to figure out my IP or bitcoin addresses, no matter how many compromised nodes that they are willing to pay for.

Another would be to insulate your client's machine from a direct attack, in the event that some future hacker figures out an automated or simple way to identify bitcoin nodes by IP, and then attempt to crack in and straight up steal your wallet.dat file and/or install a keylogger to figure out your wallet's passkey.  Security through obscurity is untrustworthy, but it can still be very effective in practice.

[MoonShadow]

But I'm saying I don't want to use VPN 24/7.
Is there a specific time I should be using it with bitcoins that are very important?

No, probably not.  At least not unless you have some other reason to be paranoid.  Tor is free, though.

[mjc]

A VPN will not protect you if you come across a site that loads a malicious software with a reverse shell or other Trojan on your computer.  That's really the end game for a cracker. 

The VPN services provide a way around filters.  Some countries do not allow their people the same freedoms that most of us have.  The VPN's will allow them to bypass these filters. 

People also use the VPN's to try to hide their tracs when they are doing something maybe they think they should not be doing.  Read about the cracker that hacked Sony, he was using Hide My Ass, a VPN service.  It was what gave him away.

www.theregister.co.uk/2011/09/26/hidemyass_lulzsec_controversy/

[marnie]

Thanks guys. More clear now.