At that kind of moment, what would you really do? Are you going to sell some part of your bitcoin to solve the problem or are you going to borrow from the bank or friends and keep your bitcoin because the price will go up later?
If such emergency takes place then surely I'll consider selling my Bitcoin as I have no other choice, but if I can manage such emergency which I always do because I always keep extra cash for such emergencies in my separate account, but still if emergency situation gets intense then I'll most probably sell some of my Bitcoin at that time.
Don’t make selling your investment sound so easy to do in the case of any emergency. No, I don’t think it is proper. Instead you should learn how to build a strong and solid emergency fund so you can handle such cases without having to touch your investments. Once you always resort back to your investments as your emergency funds, without building an emergency funds account for yourself, you will have problems getting to build your portfolio at the end of it, you turn your investment portfolio to your emergency funds and the aim is defeated.
Everyone is investing so that they can be profitable in future and use their profits to achieve their goals. However, as a long-term bitcoin investor, to avoid selling your bitcoin prematurely, you have to set up an emergency funds of at least three months of your monthly expenses so that when you're hit with reallife emergency like you mentioned in the OP, you use it to solve that problem. If you don't have an emergency funds, you have to sell your bitcoin to take care of it.
yes sir. I buy into your idea too sir. We all invest hoping to make good profits later and to use that profit to reach our goals, usually our goals differ due to whatever we have planned for our future and it is our goals that shape our investments in terms of the duration and the tenacity to achieve our goals.
Some of us go into investing in bitcoin to buy a house, some to start their dream business, some to just have some financial independence, what ever is the case, if you don’t plan it well , a sudden emergency can force you to sell your bitcoin at the wrong time and wrong price and you lose out on your future growth due to that.
This is why the best protection is what you have mentioned which is for somebody to build their emergency funds first for some months least of 3 months depending on your cash flow then you can use the rest of your money to invest in your bitcoin portfolio. Once you have secured your safety net properly, you can put the rest of your money inside your bitcoin investment without fear
When emergency hits. Will you sell your bitcoin or borrow and keep holding?
I once watched an interview where the investor told how to achieve real profits in Bitcoin investment, we really have to maintain our investments under any circumstances, even if it is an emergency, otherwise don't expect anything from Bitcoin.
I am aware that investing in Bitcoin requires patience and determination, if in an emergency we always look at existing investments, of course our goals will never be achieved, in my view investment takes time and is not as easy as turning over the palm of your hand.
well the reality speaks differently in most circumstances and everybody has his own reality to face in the end and that is why there is no manuals to cases like this and you treat yours in the manner that best favor you. You can only listen to advises offered here by individuals who may have similar experiences to help you understand better how you shouldn’t handle your own situation without making mistakes you will later regret but it is not that you must obey whatever somebody else says whether in an interview or other situations. You know the idea is usually that if you sell during tough times then you have break the long-time plans and might miss the big gains that will come with it later but the reality still remains that it is not everybody that can truly follow the never sell, even in emergency rule without a safety net.
For most people if such emergency issues happens and they have no any other means of accessing funds and it is dangerous to leave the issue unattended then they result to selling some of their bitcoin investments to handle the issues. But the advice is for such people to put their bitcoin investments on hold after solving the problem and firstly build a strong and solid emergency funds first at least for the next 3 to 6 months first in cash and stable savings then after that they can then resume their bitcoin investments for life so they are able to build a portfolio they won’t need to touch for years.
In the event you lose your job, then taking a loan won't gain approval then. Just don't pressure yourself more, its okay to sell a fraction of your bitcoin, once you benefit from it, that's still considered profits. And what's the reason behind investing, but to earn money so that you'll never struggle when emergencies start to arise. However, its still best to have sufficient amount of saving and serve as your emergency funds, so that you can focus in growing the possible future profits from your investment as well.
you have made a very realistic point here sir. It is not everybody that can stick to this strict never sell your bitcoin investment no matter what rule especially when real life issues hit you hard. For you to even lose your job can be regarded as one of the toughest emergencies because once you lose your high paying job, your income stops, but your bills keep coming and the banks will not necessarily make an approval of a loan to you once they realize yo don’t have a paycheck anymore.
In such kind of situations borrowing money from your friends which is fair but it is even worse to borrow money from those high interest lenders to cover your bills can be very stressful and accumulate more debt to your portfolio. I don’t know if it okay to do so when you know you can still get the job back in a specific period of time because if you have that guarantee thenI don’t think it is bad to hold on your bitcoin and borrow from friends to survive that little period then later repay immediately you get your job back, only that you also need to immediately readjust your lifestyle to reduce your expenses by 50 to 70% if possible
You can not always be prepared perfectly for any kind of emergency. It happens often that people need larger amounts of Money particularly when they have the least amount saved.
Yeah that is true. If i ever find myself in such a situation, were my emergency funds is insufficient to handle the emergency, then i have certain businesses where i can get additional funds. My point is that i have a handful of sources that can provide me with funds in a situation of an emergency, and i would only look to BTC if it is still insufficient to solve the problem, and at that point there is no other choice but to sell BTC.
you are right sir, no body can prepare perfectly for every possible emergency coming their ways. This is because in most cases some of these crises like major health issues , family emergencies, or sudden disasters that need urgent attention like in the case of a neighbor whose house got in flames due to reasons even unknown to him but suspected to have been caused by electrical sparks, such situations can need way more money than what most of us have saved even when you have planned a good amount of emergency funds. In this case I also think it will be good if somebody can tap into other sources such as their assets you can easily liquidate or reach out to reliable people or businesses that you think can help.
Sometimes those people we see who regret selling their bitcoin did it too early because they had no layer of protections to their bitcoin investments layers like saying i have allocated some money to go into the emergency funds, i have also devised other means through buying of assets that can be later liquidated quickly, also borrowed other businesses or invested in their growth with shares or bonds that you can later reach out to borrow you or take your dividends out from it, making it easier for you to maintain your bitcoin investments.
Haha, that's a stupid question, especially why would you hold Bitcoin, especially if you hold it for the safety of your life. In that case, if you can't guarantee your life with Bitcoin, then what good will Bitcoin do you? Suppose you died holding Bitcoin, then after your death Bitcoin increased many times, but in that case you are no longer alive on earth, then what is the benefit of holding Bitcoin?
Then you understand whether the Bitcoin you hold is more valuable than your life or your life is more valuable to you.
Well not exactly, if there are no other funds available, then it's out of the question, but that's already a problematic scenario, right? You always have to have savings in fiat currencies as well, in this scenario you're mentioning, your savings will basically be a volatile asset like Bitcoin, which is wrong. I personally hold Bitcoin but also have savings that are enough for me to go jobless for quite a few months, if something unexpected was to occur, I wouldn't have to escort in using my Bitcoin.
I guess you are able to do this sir because you have a job that is bringing you alot of income from it and I also guess that it is because you are disciplined enough that you are able to save your money in fiats aside from the bitcoin savings too and it makes send that way.
People who do not have a high paying jobs might be handicapped in trying to save their money in both fiats and crypto due to the money not enough, but some people are also not disciplined to save their money in both ways and it is very advantageous to do so, because you get to touch your fiat first without having to touch the crypto until when the fiat has been exhausted an the emergency still needs more attention then you get to touch just a little from it to augment or you might not even need to do such if your fiat was able to settle the bills.
If faced emergency hits rather than borrowing money i think it's more wise to sell our assets and as a parent or the person who have a family i think the family needs is more necessary than everything and if selling all of my current bitcoin can safe my wife or my children life then i will not hesitate to do that because family is number 1 and bitcoin is something we can buy which i mean although if i have already to sell all of my bitcoin but as long as i have a jobs i still have the opportunities to buy more by DCA method overall i wanted to says although bitcoin is the future asset but it is not everything because for emergency hits safe my own family is the most important rather than insist to hold my bitcoin
I think it is better we think it this way, that bitcoin is just a money that we can earn it back again but it again or build it back over time with the methods you suggested which is DCA approach which is a method that has been improvised to allow you invest in your portfolio in a manner which will be less demanding once things get more stable for you again and one should also consider you will still have your job or income but when you allow your family to be lost, you cannot replace them again and that will be considered gross negligence in all ramifications, so yes sir I believe in your submissions with no doubt. Family should always come first and no investment however promising is worth more than the health or life of your wife, your child or any of your loved ones, then it will be a case of what is the essence of gathering the funds when you can use it when in such circumstances .
What is the point of never selling bitcoin and holding it forever? I think everyone set a goal when they will start selling their crypto. Bitcoin isnt piece of art to look at (however we can look and holdings and get inspired).
Topic name says it all, if emergency hits and money will be the solution, I would sell everything to make things solved. I would start with fiat first, leave some cash for solving little issues quickly, and start selling crypto. If it is life and death situation, then time is the most precious resource and everyone would do everything to get more time or to make something quick.
Maybe it's an art to some people, that's for people that have enough to handle their financial debts. Some people will rather borrow money than sell their Bitcoin and it's understandable if they do that. Seeking Bitcoin will involve tax and buying back is going to look like you are giving a percentage share to government and tax. Since borrow money are not tax, it's better to do that and then pay back the money with little interest instead of paying 30%.
You are right. some people have alot of money to point that they can borrow easily and keep their bitcoin and like u said they may not want to sell their bitcoin because selling it means paying tax on the profit they had gathered and in some countries the taxes could be as high as 30% whic is a lot of money to think of while to them borrow has smaller interest maybe 10% or 15% with no tax, so by the time they compare both they prefer to borrow than to touch their bitcoin to avoid those taxes.
But for me as a beginner I think it is safe to sell a small part of bitcoin if I really need money for family or big problems where family is more important than the tax or interest to me. I will try to save normal money in the bank first for the emergency needs then keep my bitcoin for long time.
