The only time I believe is right for someone that is still accumulating bitcoin to sell is during an emergency and when they don't have an emergency funds and the only option they have to save the situation is to fall back to their bitcoin investment.
I'm surprised that inspite of jay juanjee teachings about emergency fund, you still don't know the purpose of setting one up. Incase you don't know, the purpose of setting up your emergency fund is to prevent you from selling off your bitcoin stash when you come in contact with a real life emergencies. I'm disappointed that after all the teachings you have been taught in this thread, you still think it is right to sell your bitcoin investment when your face with a real life emergency because it shows that you haven't been practicing what you are been taught in this thread.
It’s actually so surprising because he has been on that thread and made some few post and the most astonishing part is that he has receive some few merits from JJG from that same thread that speaks about how to handle ourselves in bitcoin investment and the suitable strategies for it.
Which responsible investor would even think about selling off their bitcoin investment when we have our emergency funds available just for any emergency that comes up? When we run back to our investment for emergency then technically it shows we don’t have an emergency funds and we are just trading and not investing at all, because a long term holder will make availability for back up funds.
He’s totally getting everything wrong.
Many of us likely realize that there are a lot of challenges that may come in figuring out where to put our value, and how much of our discretionary income to invest, versus save, versus discretionarily consume. The more discretionary income we have to work with will help us to have more potential options, yet we still may well end up making mistakes in our allocation choices.
Some of us might put value from our discretionary funds into each of the three categories, and with the passage of time, the money that we had saved up and the money that we put into bitcoin will build up, yet it is quite likely that the bitcoin's value could end up going up compared with the money that we had saved up in cash.
Maybe there could be some money that we save up for emergency and other money we put into reserve and it has options, such as our desire to buy a car or house with that money, so then there could be a BIG question, if we put some or all of the money that we want to save up to buy a car or house into bitcoin instead of keeping it in cash. There could also be questions about the extent that we might withdraw some or all of the bitcoin for a car or a house. There could be other questions that revolve around our intentions changing based on changes in our lives or even changes in our accounting based on changes in the value of our bitcoin, cash and/or costs of the item(s) that we had been intending to purchase.
Historically, many guys had used large portions of their bitcoin to buy BIG ticket items, and some of them have had regret, and others have lived with ending up being a much lower coiner or even a no coiner as a consequence of their money management choices.
I understand that there is value in attempting to be purposeful in our investing, savings and/or consumption choices, yet I also understand that circumstances might change, and some guys also might value consuming sooner rather than later, and sometimes there exists a certain amount of speculation regarding being able to buy bitcoin back cheaper than it had been sold or even concerns about relative value of the place being invested into as a comparison of how bitcoin is speculated to perform into the future.
Sometimes regrets will come from BIG options or quick actions, even if some similar results/actions might have played out, there can be differences in how the transition is managed or how much bitcoin or cash or other resources to allocate into whatever purchase or investment that is accomplished that ends up being a trade off with bitcoin or a reason that a guy might end up selling some or all of his bitcoin.
Even if there might be some routes that are better than others, at the time, that we make our choices, we might not realize which of the routes happens to be better than others, even though we will have to live with the consequences.
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Not only by his teaching, but also with many topics tackled up about emergency funds.
Because its not really good decision to take, selling their Bitcoin when life emergency came.
That also means for many months or years of their investment they choose to became so irresponsible and maybe became so greedy to think about buying more. Without paying attention with things that can secure his investment.
He should go back then read those past discussions happening in this thread, because maybe he will understand the real purpose of those matters.
I cannot see it as wrong to recognize that we may well end up having to sell our bitcoin if we run out of back up funds.
So, if we run into a situation in which we are having losses in income and/or increases in expenses, and our discretionary funds can no longer cover all of our expenses, then at that point, we would start to use various portions of our back up funds and/or any other investments that we have, and surely if we prioritize our bitcoin investment, then we would be using up our other funds and/or assets before we end up dipping into our bitcoin. And, part of our choice about what to sell has to do with both its valuation and its liquidity. One of the motivation factors in selling bitcoin ends up being how relatively liquid it is, which is also part of the reason to have had built up back up funds so that we have the choice to sell back up funds first, and most likely we would sell reserve funds prior to emergency funds, and yeah, if we end up depleting all our back up funds and other assets, we may have no other choice except to sell our bitcoin.
I think in financial preparations and having strong cashflow management we should end up in a position in which it becomes quite unlikely that we would exhaust our various options so that we have to sell bitcoin, and sure, there could be some circumstances in which we might consider selling some portion of our bitcoin, even if we have other options, and it is a good thing to have other options, yet there also could be set back in our bitcoin accumulation progress if we end up selling too much too soon and maybe making bad choices in regards to our choice about which assets/currencies to sell and for what reasons, and surely guys who have built up their various back up funds will likely be more empowered by their having had given themselves more options, even though sometimes they still might end up making mistakes in their derminations about how to exercise their options.
You don't accumulate bitcoin with the mindset of selling after seeing a little profit because that's the same thing as trading and not investing. This is why it's important for all long term bitcoin investor to set up an emergency funds as the same time they started their bitcoin investment in order to be able to holdi your bitcoin in times of unforeseen circumstances playing out because your emergency funds will be there to bail you out.
You are not to sell your bitcoin in your accumulation phase until, you have reached your over accumulation stage and you should focus on buying and growing your stash overtime with consistent and persistent for the future because if you sell little when you see profit, you will continue selling and before you know it you will run at loss because you will start timing the market to buy during the dip which becomes problematic to build your bitcoin investment in a fast pace like using DCA.
We all know that it is very important to set up emergency funds for our investment because of challenges that can come our way while investing but that does not mean someone will have to set this emergency funds at same time they are starting their bitcoin investment i mean it is not a criteria however, if someone source of income and their discretionary are so flexible to do this... then it is very much okay and an advantage to them but if you can not, you do not have to force it, because it can be set up as we progresses, there are people who can not afford emergency funds in their initial stage but that does not mean they can not start.
Every person should have at least some amount of back up funds to make sure that they are not using money beyond their discretionary income to invest in bitcoin. They also should start right away to ongoingly build their both their bitcoin holdings and their back up funds, since if they have very low levels of back up funds, they need to be proactively paying attention to that and building it along with their bitcoin stash.
Of course, how much priority to give to the bitcoin stash as compared with the back up fund is somewhat a matter of choice, yet beginners could end up fucking up greatly in their first 1-2 years of accumulating bitcoin if they are failing/refusing in sufficiently making sure to build up their back up funds at the same time as they are adding to their bitcoin. If you end up screwing up because you have little to no back up funds, and end up having to sell some or all of your bitcoin due to your own lack of proper preparations, then you have no one to blame , except yourself in your choice to gamble by choosing to inadequately allocate to your back up funds.
