A Virtual Private Server (VPS) is a versatile and powerful tool that can be utilised for various purposes—and crypto activities is one of them. Whether you're looking to run a node or manage digital wallets, a VPS can provide the robust infrastructure and control you need to optimise your crypto activities.
In this blog, we’ll break down everything you need to know about using a VPS for crypto operations.
Is a VPS Good for Crypto Operations?
A VPS is an excellent choice for handling a wide range of crypto operations. Whether you’re managing a blockchain node, executing transactions, or running decentralised applications (DApps), a VPS provides the reliable, always-on environment necessary to keep your crypto activities running smoothly.
A VPS offers a virtualised hosting environment that operates independently, allowing you to execute crypto operations with greater control and security. By partitioning a physical server into multiple virtual servers, a VPS ensures that your crypto tasks are isolated, reducing the risk of disruptions or security breaches.
Here’s why a VPS is particularly well-suited for crypto operations:
- Reliability: Crypto operations require consistent uptime and performance. A VPS ensures that your nodes, wallets, or DApps remain accessible and functional 24/7, minimising downtime and maximising efficiency.
- Scalability: As your crypto needs grow, a VPS allows you to scale your operations without the need for additional physical hardware. This flexibility is crucial for adapting to changes in demand, whether you’re expanding your network or processing more transactions.
- Security: With a VPS, each virtual server is isolated, offering enhanced security for your crypto operations. This isolation protects your operations from external threats and ensures that each task is securely contained, reducing the risk of data breaches or unauthorised access.
- Cost-Effective Management: Managing crypto operations on a VPS can be more cost-effective than maintaining physical servers. You only pay for the resources you need, allowing for more efficient use of your budget while still benefiting from robust infrastructure.
Which Crypto Operations Can You Run on a VPS?
- Running Nodes: Maintain blockchain network nodes with a stable, always-on VPS to ensure seamless operation and synchronisation.
- Crypto Trading: Deploy trading bots and automated systems on a VPS to achieve reliable performance and minimal downtime for your trading strategies.
- Managing Digital Wallets: Securely manage and access your cryptocurrency assets with a VPS, benefiting from enhanced security features and consistent uptime.
- Hosting DApps: Deploy and manage decentralised applications with the scalability and reliability provided by a VPS, ensuring optimal performance for users.
- Running Faucets: Efficiently manage user interactions and dispense cryptocurrency rewards with the reliable infrastructure of a VPS.
- Staking and Yield Farming: Keep staking nodes or liquidity pools operational around the clock with the dependable and scalable environment of a VPS.
- Running Blockchain Explorers: Offer users high availability and performance to view and search blockchain data, supported by a robust VPS setup.
- Research and Development: Conduct testing and development of new blockchain technologies in a flexible, scalable VPS environment tailored to your project’s needs.
- Hosting Crypto Websites: Ensure reliable performance and scalability for your cryptocurrency-related websites, providing a robust platform for content and user engagement.
The Key Benefits of Using a VPS for Crypto
1. Continuous Uptime
Cryptocurrency operations require high availability. If you’re running a full node, any downtime can lead to missed transactions or reduced earnings. A VPS offers continuous uptime, ensuring that your crypto operations run smoothly 24/7. With a provider like Virtarix, you can count on 99.9% uptime, keeping your crypto activities reliable.
2. Enhanced Security
Security is a major concern when dealing with cryptocurrencies. A VPS provides an environment separate from other users, which helps to reduce the risk of attacks. You can also implement your own security measures, such as firewalls, VPNs, and encryption, tailored specifically to your needs. Virtarix VPS plans come with robust cloud firewalls, protecting your infrastructure from online threats and ensuring a safe hosting environment.
3. Cost-Effective Solution
Compared to maintaining your own hardware, a VPS is a cost-effective solution for running crypto operations. With Virtarix, you get access to high-performance servers at an affordable price, starting at just $5.50 per month. This makes it easy to scale your operations without the overhead costs of physical servers.
4. Flexibility and Scalability
As your cryptocurrency activities grow, so do your server needs. A VPS allows you to scale your resources up or down based on your requirements. For example, if you’re running a node for a growing blockchain, you can easily add more CPU power or storage to handle the increased load.
With Virtarix, you can easily upgrade to a bigger instance in a matter of minutes. Our XXL VPS (priced at just $55.60 per month) offers up to 128GB of RAM and 16 CPU's.
Setting Up a VPS for Crypto Operations
Setting up a VPS for your crypto activities is a fairly straightforward process. Here’s how you can get started:
1. Select Your VPS Plan
Choose a VPS plan that meets your needs. Consider the CPU, RAM, and storage requirements based on your specific crypto activity. For instance, running a full Bitcoin node will require more resources than a lightweight wallet.
2. Install Your Preferred Operating System
After setting up your VPS, you’ll need to install an operating system. Most crypto software is compatible with Linux distributions like Ubuntu or CentOS. When signing up for a Virtarix VPS, you’ll be able to choose between Ubuntu, Debian and AlmaLinux.
3. Secure Your VPS Environment
Before diving into crypto operations, it’s essential to secure your VPS. Set up SSH keys for secure access, configure firewalls, and consider additional security measures like DDoS protection or intrusion detection.
4. Install and Configure Crypto Software
Once your VPS is secure, install the necessary software for your crypto operations. This could be a full node for a blockchain, or a wallet management system. Follow the installation instructions provided by the software and configure it to run optimally on your VPS.
5. Monitor and Maintain Your VPS
Once everything is set up, it’s crucial to regularly monitor your VPS to ensure optimal performance. Keep an eye on system metrics such as CPU usage, memory, and disk space to prevent issues that could impact your crypto operations.
Additionally, implementing a robust backup strategy is essential. Regularly schedule backups of your critical data and configurations. This will help you quickly recover from any potential data loss or system failures, ensuring that your crypto operations can continue without interruption. It’s worth noting that all Virtarix plans include backups at no extra charge.
When managing crypto operations, many choose hyperscalers like AWS, Microsoft Azure, or Google Cloud for their broad range of features. However, a VPS can be a far more cost-effective alternative. VPS hosting provides predictable and manageable costs that often remain significantly lower than the hidden fees associated with hyperscalers, making it a smarter financial choice for your crypto activities.
