To break big notes (nobody in Asia likes to change those anyway) I usually use the gas station when filling up my tank or larger supermarkets with electronic cash registers. Less likely to cheat you…

1) US Dollars: preferably small notes like $1, $10 (Keep 10 pieces)

2) Big notes. It’s especially important when you are going to remote places without reliable ATM, big banks and Western Union branches. The most convenient is US$, though the biggest denomination is US$100, whereas the biggest one for Euro is 500 Euro (500 Euro=6-7 times US$100). Although you can find 1000 Swiss Franc notes which is worth even more (=8-9 US$100 note), it is not as widely acceptable as Euro. So, I would suggest that you keep a piece of Euro 500 and a few US$100 notes if you need to go to remote places.

3) Otherwise, the best way to obtain money is to carry a few ATM cards (3 or 4). Try to limit the amount of balance in each bank account linked to each ATM card so that even if you lose you card (by force or theft) and PIN, you limit the amount of loss. (eg. to US1,000 per account). You should check out with your banks how much they charge for cash withdrawal from overseas ATM. Of course, choose those with the most favorable terms.

4) Have one main account with most of your cash reserve, but don’t have any card linked to it. Instead, use this account to transfer cash to your ATM-linked accounts periodically. You should have a double-security for this account, and most internet banks do provide this (they give you a small device that generates a second PIN, which changes randomly over time, or SMS this second PIN to your mobile phone). You can also use this account to manage your investments in bonds, stocks, etc.

5) Always use cash (physical) or paypal (online) for payments. Avoid using credit or debit cards. Your card numbers may be stolen. So, withdraw cash, use cash to pay. If you are paying online, try to use paypal so that you don’t reveal your card numbers. As explained, either use local currencies or keep plenty of US$ notes to do this. It’s still the world currency.