How To Travel The World With Crypto – What You Need To Know
Over recent years, the use of and investment in cryptocurrencies have increased tenfold. What started as a niche market used for dark-net transactions or “nerd money” to use on shady websites has transitioned into a full-fledged financial investment commodity. Today, people can follow cryptocurrency prices and spend their digital coins almost anywhere, both online and offline. In addition to purchasing goods and services, travel remains one of the best ways to spend your crypto. Their borderless and permissionless nature makes crypto an ideal currency for traveling.
In this article, we will take a closer look at the benefits of crypto for traveling as well as some precautions to take before departing. Let’s get started, shall we?
Advantages of Crypto for Traveling
Cryptocurrencies have a wide array of advantages over traditional money. They are decentralized means of exchange that are independent of any type of central governing body. With that said, they have additional benefits for those who wish to use them to pay for their travel expenses. These include:
Borderless – cryptocurrencies are based on a global network, the blockchain. This means that crypto is valued the same in most countries. This allows you to avoid expensive exchange rates when paying with your crypto, unlike when using your debit card, for instance.
Secure – fraud is rampant in some third-world countries that are otherwise popular vacation destinations. Cryptocurrencies can allow you to pay in the safest possible way without the possibility of your ID or credit card details being stolen.
Fast and cheap international transfers – in case you are staying abroad and run out of money, you can ask a relative to send you some crypto. The transfer would take just a couple of minutes. In contrast, an international money transfer will usually take more than 24 hours and you will have to go to an actual branch to pick up your cash.
Easily recovered abroad – imagine you lose your phone and all your crypto with it. All you would need is for someone to send you your seed to recover the contents of your wallet. This isn’t the case with traditional payment methods. For instance, you might need to wait for days or weeks for your bank to provide you with a new credit card abroad.
Main precautions to take when traveling with crypto
With that said, there are some precautions you might want to consider before you start your world-traveling journey using cryptocurrencies.
Carry enough even for emergencies
While it’s a good idea to carry some crypto for daily expenses on your vacation, you should always have enough in cold storage for emergencies. If you are planning to pay most of your big expenses using crypto, it’s essential that you carry at least roughly the same amount of crypto you would need to buy a ticket back home.
Ensure that this amount is on a separate crypto wallet. If your primary spending funds are compromised, you can fall back on this emergency fund.
Travel with both cold and hot storage
You should always carry a hardware wallet in addition to your mobile wallet which will be used for your daily spendings. The bulk of your crypto should be kept in cold storage and you should transfer small amounts to your mobile wallet in case you need more.
This way, your main holdings will be more secure than in a mobile wallet that can be easily stolen or lost.
Remain discreet about your holdings
Never talk about how much money you are carrying around. This remains true for crypto, because even if your funds are securely stored on a hardware wallet, criminals may be tempted to harm you to steal them.
Do your research on where to use your crypto before departing
An important step when traveling using cryptocurrencies is to do your research as to where you can spend it. Double-check this information by writing an email to the hotel or restaurants prior to visiting them.
It would be unfortunate to arrive in a foreign country, only to learn that your hotel won’t accept crypto. This is sometimes the case in times during which crypto prices are falling.
Don’t rely entirely on crypto for your needs
And last but not least, you should never entirely depart without some emergency cash on a credit card. Even though crypto is getting more popular than ever before, it can still be an unreliable method of payment. Merchants might stop accepting it, and you wouldn’t want to starve with thousands of dollars of crypto on your mobile wallet with nowhere to spend them.
Cryptocurrencies provide a wide array of advantages when it comes to traveling. You can save a lot of money by avoiding prohibitive exchange rates by paying with crypto. However, you should remain cautious, as some merchants might have changed their minds about accepting them as a means of payment. To be safe, always carry a bit of cash when traveling around the world.