When emergency hits. Will you sell your bitcoin or borrow and keep holding?

[BitBakerr1]

If you are investing in Bitcoin you need to have a backup funds and inside this backup funds we have emergency, reserve and float funds when you have all this funds available you can just use it for any emergency issues that comes up you don't need to go and borrow money to solve your emergency issues, as a Bitcoin investor if you always borrow money in other settle emergency issues you are in a big mess and you may end up losing your Bitcoin, each time you borrow money from someone you will always have to pay with interest so if you are an investor and you don't have all this backup funds I listed you need to start building them and you can start doing it alongside your Bitcoin accumulation, without having a backup funds your Bitcoin investment is at a big risk of crashing.

[pawanjain]

Hello everybody, I have one big question to ask that I think many people face which is, we always hear people say here and on other platforms ‘you should never sell your bitcoin’ and HODL it forever but I don’t think it is applicable in real life because god forbid an emergency can come up with you like one’s child can get critically sick and the hospital bills are too high or you lose your main job and does not know what and where next to go for a rescue. 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?

This is the reason why we all should have one emergency fund which consists of 6 to 12 months of our monthly expenses.
During an emergency we can use this fund which will be parked in liquid deposits.
In case I don't have this fund and if the option is between borrowing money and selling bitcoin then the decision will depend on the current price of bitcoin.
If the price of bitcoin is near its ATH then I will consider selling the funds and sort out the emergency and if its in a bear market then I will consider borrowing from a friend.

[arwin100]

Hello everybody, I have one big question to ask that I think many people face which is, we always hear people say here and on other platforms ‘you should never sell your bitcoin’ and HODL it forever but I don’t think it is applicable in real life because god forbid an emergency can come up with you like one’s child can get critically sick and the hospital bills are too high or you lose your main job and does not know what and where next to go for a rescue. 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?

This is the reason why we all should have one emergency fund which consists of 6 to 12 months of our monthly expenses.
During an emergency we can use this fund which will be parked in liquid deposits.
In case I don't have this fund and if the option is between borrowing money and selling bitcoin then the decision will depend on the current price of bitcoin.
If the price of bitcoin is near its ATH then I will consider selling the funds and sort out the emergency and if its in a bear market then I will consider borrowing from a friend.

I agree and this is why most of traders or investors experience failure because they didn't prepare on other important things and they put everything they have on their investment.

If there's emergency situation occurs here they are dumping all the coins they bought and that's huge loss already in their part. Some may say that its fine to start all over again but imagine all the efforts just wasted because of those some situation which they can avoid if they are well prepared. So all of us should have emergency funds since this will secure us on emergency situations. People should not downplay its importance since if they manage to set up this I think they have higher chance to succeed compare to those people don't set up this kind of funds.

[Outhue]

I don't need to sell Bitcoin when emergency comes, I have fiat for this reason, I plan to hold as many Bitcoin as I can for a very long time and that's why I even feel comfortable with spending some part of my Bitcoin, this is about me and I am not advising anyone to walk the same way as me.

You do what you think it ls best for you, because no amount of money is worth anyone's life, if you are in a position where it is very bad and the only option to get out of that bad position is by selling your Bitcoin then do it, the move won't be the end of you, but learn from it and prepare yourself better for emergencies another time. Make sure you save money for emergencies as you are saving for bills and other things, do not allow your Life emergencies disrupt your long term DCA plan.

[lizarder]

Hello everybody, I have one big question to ask that I think many people face which is, we always hear people say here and on other platforms ‘you should never sell your bitcoin’ and HODL it forever but I don’t think it is applicable in real life because god forbid an emergency can come up with you like one’s child can get critically sick and the hospital bills are too high or you lose your main job and does not know what and where next to go for a rescue. 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?

That's why it's not a good move to invest all your money in bitcoin because you never know when something happens and we need money suddenly for some reason. You can carry out investment activities based on accuracy, for example making a certain percentage of funds in preparation for life. You can divide it according to your abilities, such as investment, savings or emergency funds so that when you suddenly need money, your investment in Bitcoin is not disturbed and you don't have problems.

Just imagine when you suddenly need money and the price of bitcoin is below the average purchase price, do you think selling bitcoin in that condition is a good decision? This is the reason you need to have a clear plan in living your life because we are not only talking about investment, but there are life processes that also need to be prepared well.

[Fiatless]

I agree and this is why most of traders or investors experience failure because they didn't prepare on other important things and they put everything they have on their investment.

If there's emergency situation occurs here they are dumping all the coins they bought and that's huge loss already in their part. Some may say that its fine to start all over again but imagine all the efforts just wasted because of those some situation which they can avoid if they are well prepared. So all of us should have emergency funds since this will secure us on emergency situations. People should not downplay its importance since if they manage to set up this I think they have higher chance to succeed compare to those people don't set up this kind of funds.

There can be a situation that would consume all you emergency funds and still need more money. Life is more precious than Bitcoin. You or your family members need to be alive and in good health for you to enjoy your money. If selling my Bitcoin will save the life of my child, I would gladly sell them. Yes, it took me so much effort to accumulate, however the pain of losing a loved one will be to much to bear.   

[Nothingtodo]

In case of an emergency at any time in a person's life, people must save something so that they can spend from that savings in times of danger. If such an unexpected danger arises and in that case, if a situation arises to sell Bitcoin, then of course I will sell Bitcoin. It must be remembered that Bitcoin is not bigger than my child, but my child's life is bigger than Bitcoin. If you take a loan from a bank, the debt will increase over time, but if you can sell Bitcoin to pay for your child's treatment, that will definitely be better than increasing your debt to the bank. I want no one to face such an unexpected danger in their life and to be able to spend from the savings they have made in the past during times of danger. That is why cash funds or savings are definitely important in human life.

[Z-tight]

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.

[ejikeme24]

If you are investing in Bitcoin you need to have a backup funds and inside this backup funds we have emergency, reserve and float funds when you have all this funds available you can just use it for any emergency issues that comes up you don't need to go and borrow money to solve your emergency issues, as a Bitcoin investor if you always borrow money in other settle emergency issues you are in a big mess and you may end up losing your Bitcoin, each time you borrow money from someone you will always have to pay with interest so if you are an investor and you don't have all this backup funds I listed you need to start building them and you can start doing it alongside your Bitcoin accumulation, without having a backup funds your Bitcoin investment is at a big risk of crashing.

It is never right to start an investment without setting aside emergency funds or reserve funds irrespective of the investment you're into, because failure to set up emergency funds or reserve funds could also affect one in other investment whenever there's emergency so this emergency funds/ or back up funds is required in other investment. But it's very essential in Bitcoin investment since it's a Long term investment, because emergency may not arise when we expect as it can happen at anytime so all investors is advised to make their emergency funds available at all time Incase of any emergency.

[Patikno]

Hello everybody, I have one big question to ask that I think many people face which is, we always hear people say here and on other platforms ‘you should never sell your bitcoin’ and HODL it forever but I don’t think it is applicable in real life because god forbid an emergency can come up with you like one’s child can get critically sick and the hospital bills are too high or you lose your main job and does not know what and where next to go for a rescue. 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?

You should know that holding Bitcoin requires a strategy. For example, you can use the DCA strategy to gradually pay off your Bitcoin, and this won't affect your emergency savings. So, you can compound your Bitcoin and hold it long-term. We know we need an emergency fund, a fund for daily needs, or any other fund necessary for life. Therefore, you must be wise in allocating your finances, managing them as best as possible, without sacrificing current or future needs. I think you need to digest every piece of information you receive, don't accept it blindly without further research.

Even if a situation like the OP described happens to someone, they should sell their Bitcoin. Nothing is more important than health or life. You can recoup your wealth through work, but your health or life is a different matter. Then, once all the problems are resolved, you can try to reinvest in Bitcoin in good condition.

[Localhostspeed]

It is never right to start an investment without setting aside emergency funds or reserve funds irrespective of the investment you're into, because failure to set up emergency funds or reserve funds could also affect one in other investment whenever there's emergency so this emergency funds/ or back up funds is required in other investment. But it's very essential in Bitcoin investment since it's a Long term investment, because emergency may not arise when we expect as it can happen at anytime so all investors is advised to make their emergency funds available at all time Incase of any emergency.

So you are saying that you have an emergency funds with you now as you say this thing? We don't have to try to be perfect online when in offline life is difficult for everyone. Life can happen to you and I especially when you don't expect it. You can see a healthy person today and the next day he is diagnosed of Cancer or kidney failure and it's not because they don't plan their life or eat healthy things, it's life that happen to them and nobody expect it.

When such kind of predicaments comes around, the first thing that will come to your mind is how to be healthy, investment will not matter to you again, it's good health that will be ringing on your head every day. It's when you have good health you can even think about investment. If something terrible happen to you and you die, the people you left behind are going to cry and mourn you and after some months, your property including that Bitcoin you refused to sell will be sold and use for another things. Learn to value your health before any investment.

[qwertyup23]

The purpose of an investment is for your money to mature by taking advantage of the time. Basically, you use your "savings" in order increase its value overtime either as an investment or maturing interest rate. But the common denominator remains the same- you exchange it for MORE money in the process.

The question is, when an emergency hits, would you use your BTCs? Personally, the answer is a huge YES.

Like what I mentioned above, the purpose of an investment is more money on your pockets. But an investment is futile if you have no savings left to answer for such emergency; so somehow, you are forced to use your BTCs (as investments) and convert them to cash in order to answer for that emergency.

Again let me reiterate, when your investments mature, it is always be converted to money. So see your investments as a double purpose- either for maturing long-term; or holding it for such an emergency.

[Renampun]

When such a situation comes, it is much better to sell the Bitcoins you own, the reason is simple: it's quicker to get cash than forcing yourself to hold onto assets and borrow money, which is a more complicated and time-consuming process. no need to force yourself too much to keep holding even when you are experiencing an emergency, your investment in bitcoin doesn't need to get you caught in a difficult situation just to maintain the principle of holding forever, just sell it and then pay what you need. but after that consider managing your finances again and then investing slowly to rebuild your investment.

[Solosanz]

There can be a situation that would consume all you emergency funds and still need more money. Life is more precious than Bitcoin. You or your family members need to be alive and in good health for you to enjoy your money. If selling my Bitcoin will save the life of my child, I would gladly sell them. Yes, it took me so much effort to accumulate, however the pain of losing a loved one will be to much to bear.   

True.

Many people always think as long as we prepare, even the worst thing happen to our life, it won't ruin our life. However, preparation to fight against every possibility in this life. When there's a poor parent ask donation for their child, they will blame the parent for being irresponsible, they shouldn't have a child if they're not able to provide the child. But, the parent might be rich before and then after Covid lock down happen, their business collapse and no companies want to hire them to work either due to skill, age bracket, etc.

[bitzizzix]

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.

Yes, there are several steps to take before Bitcoin becomes an option.
And when my emergency fund is insufficient, sacrificing or selling something valuable to meet an urgent need due to insufficient funds is also a good idea, in my opinion. Because we can buy it back by saving outside of the emergency fund and also by investing in Bitcoin. Another option is to buy it back with a small portion of Bitcoin's profits when the price rises and be in a profitable position to buy back what was sold to meet a previous urgent need if what was sold was truly important. So, there are many other ways before Bitcoin truly becomes the only last resort.

[ejikeme24]

[Edited out]

So you are saying that you have an emergency funds with you now as you say this thing?

It is non of your business if I have emergency funds or not, you think I'm just saying all of this when I don't have emergency funds? A real investor can not forget about having emergency funds especially when investing for Long term, because failure to do that would make you sell your holdings for short term when there's emergency need.

When such kind of predicaments comes around, the first thing that will come to your mind is how to be healthy, investment will not matter to you again, it's good health that will be ringing on your head every day.

Don't you think you're going to far? I know that there will always be an emergency no matter what that is why you need to set up emergency funds so that whenever emergency issue arise you won't be running around or trying to temper your investment but to dip your hand in your emergency funds to sort yourself out, investment is not something you will just dive into without a proper planning.

[mindrust]

Depends on my allocation percentage at that moment of emergency. If I think I hold “too much” then I will be selling some coins instead of loading up on the debt. If I decide that I still don’t have enough coins, then taking a loan is the way to go. I can’t give you a straight answer like “i’ll be hodling” or “i’ll be selling” right from today before the day of emergency arrives. Circumstances change, so my response changes. Even the cost/size of the emergency matters. Not all emergencies are expensive. Having a brain surgery is an emergency but most of the time the health insurance pays for it.

I guess it is a nice idea to have a balanced portfolio just because of this reason. It is always a good idea to have some cash position too.

[Agbe]

 If there is an emergency which is need funds to solve, and I don't have physical cash or funds and I have bitcoin investment, I will use it to solve the issue, because it is only those who are still alive can invest and hodle bitcoin and if you didn't use use the invested bitcoin to save your life and you pass on, your Bitcoin will be lost forever as well if you didn't give your seed phrase to love one or trusted one before the incident happened. My advice on this is sell and save life.

[boyptc]

I don't need to sell Bitcoin when emergency comes, I have fiat for this reason, I plan to hold as many Bitcoin as I can for a very long time and that's why I even feel comfortable with spending some part of my Bitcoin, this is about me and I am not advising anyone to walk the same way as me.

That only shows that you're in a better situation compared to the others who's said that they have no other option but to sell the bitcoin that they're holding.

If you're able to spend some just for some matters that you'd like to do it. It means that you've got a good plan that's working for me.

You're holding for a long time and if you want to spend some, it's okay but you're not also going to sell a probable huge portion of it.

[GeorgeJohn]

Hello everybody, I have one big question to ask that I think many people face which is, we always hear people say here and on other platforms ‘you should never sell your bitcoin’ and HODL it forever but I don’t think it is applicable in real life because god forbid an emergency can come up with you like one’s child can get critically sick and the hospital bills are too high or you lose your main job and does not know what and where next to go for a rescue. 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?

Everyone have purpose of holding Bitcoin neither for long-term or short-term, if assumed you don't have a spare funds to take care of your present financial predicaments, and you have some valuable amounts of Bitcoin you're holding, I will advice that you should sell some amount of Bitcoin on your portfolio and Solve your problem...The essence of investors holding Bitcoin is the future purpose, and you can't die left your bitcoin, whereas Bitcoin you have can Solve your problem amicably without been a debtor.