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4 Tips And Tricks For Avoiding Foreign Exchange Fees When Traveling

Back in the day, the price of cryptocurrencies were determined only on speculation. Bitcoins didn’t have much use back then and investors only invested in them because they thought they had some potential to grow into an economic weapon in the future. However, things have changed now.

Cryptos are globally accepted which means that they are applicable everywhere, and can be traded in every country. You can obtain maximum benefits by cryptos, and can be en-cashed anywhere. If you are planning your next trip, you may be interested in learning how to pay in these digital coins without paying additional costs.

While traveling it is critical to keep an eye out for currency exchange rates in that country. Currency exchange rates are complex and continuously fluctuate as part of the daily whirlwind of global business. You can also consider trading in crude oil. For more information check out, oil-profit-app.com/de.

That said, we have formulated a list of the tips and tricks that will help you make payments in these digital currencies to evade the foregin exchange fees. There are numerous reasons that govern why you should consider using them. In this article we will go over the points to determine how to make payments using cryptocurrencies while traveling.

Reasons Why Should Consider Investing In These Coins

  • Make Sure To Visit A Country Where Cryptocurrencies are accepted
Source:news.bitcoin.com

The difficulty of making payment in bitcoins is greatly dependent on the rules and regulations followed by the country you are visiting. This means whether or not you can use bitcoins to make payments is dependent on the fact whether cryptocurrencies are available in that country or not.

There are a plethora of options available in developed countries and such countries also have more liquidity in terms of trading Bitcoins. If you are visiting a country where such coins are not accepted you can try looking for bitcoins brokers who can exchange your digital coins for cash.

  • Take some cash with you

It might so happen that the country you are visiting does not accept cryptocurrencies. In such a situation, carry a few notes before you leave. Major currencies such as American Dollars, EURO, etc. are accepted in almost all countries and you will easily find brokers who can exchange the cash for currencies of their country.

You may be able to obtain money in cash at your local bank office, or you may be able to purchase currency online or by phone and have it delivered to your home.

In case you didn’t have time to go to the bank before you travel to another country, it’s tempting to buy foreign money at an airport kiosk. These locations are a convenient option, but their conversion rates are often substantially lower than those offered by your local bank.

For example, if you are flying to London and your bank gives you an exchange rate of eighty euros for hundred dollars, the airport kiosk may only offer you sixty euros for hundred dollars, costing you more money in the form of less pounds for your dollar. If you had performed that trade at your home bank, you would have had an extra five euros in your pocket.

  • Make Crypto Wallets
Source:permission.io

When you arrive in your destination country, you may decide to save your foreign currency cash and make as many purchases with your credit or debit card as feasible.

However, this might lead to another issue: international transaction costs. Depending on your bank and the card in your wallet, your credit or debit card may levy a foreign transaction fee of up to 3% on all purchases made in other countries.

How can you prevent paying foreign transaction fees? Before you travel, do your homework and make crypto wallets to carry your cryptocurrencies. You can make payments using these digital coins to avoid any additional costs.

Choosing cryptocurrency is more than just looking at the international transaction cost. The price of cryptocurrencies remains the same no matter which country you are visiting. In such a scenario, you need not exchange the cash for currency of that country. You can easily make your payments in cryptocurrency.  Look for brokers or apps that can assist you in making payments through crypto.

If you frequently travel internationally, consider utilizing a crypto wallet that is accessible worldwide, to handle your money. These wallets make it easy to move money between nations and avoid additional charges

You can, for example, store some of your digital coins in these wallets to be used while traveling. It’s useful if you often go to Canada or Mexico, or if you spend your summer vacations in Spain. This allows you to escape the volatility of foreign conversion rates because you’ll always have some money on hand for your next trip.

  • Keep Your Digital Currency Safe

When investing in bitcoin you get access to crypto wallets, and they are prone to getting hacked easily. The crypto holdings can be breached as well and they will break into your investments. That said, it becomes critical to keep your crypto safe by practicing habits of digital security.

Third parties and crypto exchanges offer completely secure wallets that are though online but the safest option. When investing you should make sure that you hold crypto on the most safe and secured platform. Cold storage options are also recommended by experts through offline devices.

Summary

Source:corporatefinanceinstitute.com

If you are planning your next trip and wish to evade the ever increasing foreign exchange rates, you can try making payments using cryptocurrencies. You can maintain a crypto wallet and use apps to make payments. The value of cryptocurrencies remain the same worldwide and thus with them you need not pay any extra charges.

Making payments using these digital coins is a great option while traveling but you should be extra cautious when doing so. It has risks involved and so we advise you to make wise decisions by following the steps mentioned above.


Ricardo is a freelance writer specialized in politics. He is with foreignpolicyi.org from the beginning and helps it grow. Email: richardorland4[at]gmai.com

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