Some of the readers have been asking me about traveling with Bitcoin and the best practices for using cold storage devices on the go. This topic is gaining popularity as more people seek to relocate their wealth to backup jurisdictions. It's essential to pay close attention to this matter because failing to follow the rules can lead to serious trouble. In this article, I will outline the best practices for traveling with Bitcoin and share some of my personal travel stories.
My very first trip to Latin America was a visit to Panama to see some friends. The flight took me from LAX to Panama City, Panama. At the airport, I handed my ticket to the airline employee at the counter and began walking through the tunnel to board the plane. However, in the tunnel, I encountered two Customs and Border Protection (CBP) officers. I was randomly selected, and they asked to inspect my backpack. They placed it on a table and meticulously went through its contents. Afterward, they examined my wallet and counted all the money in it to ensure I wasn't carrying over $10,000, which is a crime and is considered money laundering by the government.
I had nothing to hide, but I couldn't help feeling nervous. I couldn't even imagine how anxious I would have been if I did have something to hide. At the time, Panama was known as a major hub for money laundering due to its strict banking secrecy laws. It was often referred to as the 'Switzerland of Latin America,' where foreigners could easily bring bags of cash and deposit them in a bank. As a result, CBP officers were specifically targeting flights to Panama, searching for excess cash, gold, and diamonds. This experience was a real eye-opener for me, and I consider myself fortunate that it happened early in my travels. It served as a stark reminder never to be naive about attempting to transport assets exceeding $10,000.
Gold
My suggestion is to never travel with gold, silver, or any other precious metals. Firstly, precious metals need to be declared because almost any country you travel to requires an import tax on metals. Secondly, customs officers actively scrutinize gold, and it's just not worth the headache or anxiety of trying to bring gold with you to a foreign country. My recommendation would be either to buy gold in the country where you want to have your backup gold, or if there are no reputable dealers available, consider buying from a trusted company like Scottsdale Mint. You can have them ship it directly to a bullion depository and pay all the taxes legally, giving you peace of mind.
For instance, in Panama, there is a precious metals vault called Fort Kobbe, and you can purchase from Scottsdale Mint. They will ship it directly to the vault and handle all the necessary taxes. I can't stress enough how important it is not to attempt to bring gold in person, even if you plan on reporting and paying the taxes. It will likely turn into a nightmare and could potentially be dangerous. This is why Bitcoin is a superior asset because you don't have to physically transport it anywhere.
Bitcoin
If you have Bitcoin on an app, you can travel with millions of dollars anywhere in the world and have zero problems. However, it's essential to note that apps are considered unsecure hot wallets. So, if you have any significant amount of money, you should own a self-custody device like a Ledger, Trezor, or Coldcard. To access your Bitcoin, you'll need to have your physical device present to unlock it for sending Bitcoin.
If you want access to your Bitcoin in countries where you've obtained your Plan B residency, I recommend writing down your 24-word seed phrase that backs up your self-custody device. Keep a copy in a secure place in your backup country, and consider buying another storage device there. Currently, you can travel freely with self-custody devices, but I'm concerned this may change in the future, as calls to ban these devices from figures like Senator Elizabeth Warren grow louder. You can buy self-custody devices in any country, so if you want zero anxiety, travel with your seed phrase on paper.
For those new to Bitcoin, if you have Bitcoin on a Ledger device, you can access it from any Ledger device as long as you enter your 24-word seed phrase. People have also asked about whether the X-ray machine at the airport could damage their Ledger device. While it's a real concern, I've personally flown with my self-custody devices and taken them through X-ray machines without any damage. However, it's always a good practice to have multiple backups of your seed phrase on a device you're taking through the airport. Also, never check a device in your suitcase; always keep it in your possession. I'm certain I'll be updating this article as governments intensify their search for accessible funds to support the struggling global financial system.
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