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

[atookz]

During the crisis, like when my ill child needs to spend a lot of money, or I lose my primary occupation or anything at all, I would definitely not sell some or all my Bitcoin. This is due to the fact that I separate long term investments and emergency funds. I have long-term investment in my Bitcoin, which I would not utilize until the moment passes. But there is also an emergency fund that I have stashed away and can access whenever necessary, or even insurance. I distinguish them since I am not interested in risking my investment objectives, that is I will not sell assets in the declining price trend since I will be losing. An emergency fund is not a complete solution because it cannot be used against unexpected events but it may be useful. And even if I have to use my Bitcoin, the emergency fund will help, and most of my Bitcoin will still be safe.

[Dogedegen]

If Bitcoin is your emergency fund, then you are doing things the wrong way. I can indulge your hypothetical scenario here but you must understand that the person who finds themselves in this situation has already made a big mistake. Cashflow management is difficult, nuances and can take many different versions despite what many spam in the Speculation section. It is not easy, and almost nobody knows how to do it properly. I believe only a very small minority of humans actually really consider this topic at all.

A portion of your monthly income must always have 2 components:
1. Bitcoin DCA.
2. Emergency fund.

The percentages can be subjective so I am not going to propose exact allocations. Some people prefer to grow a really big emergency fund that can practically cover any kind of emergency and long periods of difficulty, others do not like having so much money sitting and doing nothing. The key is that you grow both consistently, and never skip. Then when you find yourself in an emergency you will tap your fund first. If you drain the fund you will look for some alternatives such as getting a loan and only lastly would you consider Bitcoin.

Your question is very realistic and many people have to face such situations.

No it is not.

If a really serious situation happens then you should sell some amount of Bitcoin. Because you originally invested in Bitcoin for your future. If life hits you hard then using your savings is not a failure but a wise thing to do. You can continue to buy Bitcoin later if you want.

You are not supposed to use Bitcoin this way, you are mistaken. Bitcoin holdings are supposed to be separated from emergency funds.

You hired Bitcoin and set it up to give you long-term strength

Hired Bitcoin?  

During the crisis, like when my ill child needs to spend a lot of money, or I lose my primary occupation or anything at all, I would definitely not sell some or all my Bitcoin. This is due to the fact that I separate long term investments and emergency funds. I have long-term investment in my Bitcoin, which I would not utilize until the moment passes. But there is also an emergency fund that I have stashed away and can access whenever necessary, or even insurance. I distinguish them since I am not interested in risking my investment objectives, that is I will not sell assets in the declining price trend since I will be losing. An emergency fund is not a complete solution because it cannot be used against unexpected events but it may be useful. And even if I have to use my Bitcoin, the emergency fund will help, and most of my Bitcoin will still be safe.

There's somebody smart here, yay! We are in agreement.  

[Zigabel]

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 a very valid topic for a conversation. Firstly we need to consider the reasons and purpose for which whe decided to invest in Bitcoin and also Hold. We cannot say we are just Holding for the sake of Holding, we need to understand that we needed to safeguard pit future and that is one of the Reasons that prompted the Holding, you will not have your assets functional if you allow it just lay fallow in your wallet without necessarily putting to use this asset in the long run, and purposes like this which are very vital and essential to our existence is always a very valid reason to sell, your Bitcoin as an asset is only valuable and useful to you if you are alive because if you are not, it end in your wallet with almost no one been able to access it if you had not shown them how to get access to it.

If you have a life threatening emergency and your Bitcoin will help enough, it is very ideal and reasonable to sell off, you can later accumulate your coins again through the use of DCA if you so wish. You will still gwt to sell off your Bitcoin in the future, so it is almost same thing, even as a reserve you need a functional reserve that gives you value, one of the essence if for it to be accessible and useful in times like this.

[@nn@_pen9]

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?

If your child is critically ill and really needs quite a lot of money, if I were in your position, I would prioritize the lives of my beloved family over the investments I have made, I would first use the emergency funds that I have saved up so far. and if it is not enough, I will have no choice but to sacrifice all my Bitcoin assets and I will sell them to cover the amount or fees that must be paid even though the fees are not enough. We can start investing again at any time if everything is under control and we can start again when our financial situation improves.

[Antotena]

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?

'Forever' is subjective, anytime you come across such kind of statement, they are not saying don't sell nit there should a sole reason why you are doing it and it should be after you have gained some profit from it. There is nobody on earth that doesn't have the need money, after all we are making investments because we want to see the value of our money or asset grow in the future. If you need money and you don't have means of money, you can see some part and take care of the need and buy back later when you have money.

There are other means some people use their Bitcoin as collateral, they deposit there Bitcoin on the decentralize finance as collateral and borrow the amount they need but the money they take is usually below liquidation. If you borrow way to more than your liquidation, your asset will be automatically sold and you wouldn't be able to get back your Bitcoin again, you will be with nothing again.

[Finestream]

If you take a loan and you don't have a reliable source of income that will pay for it, then that will only create a bigger problem in the future. So I won't hesitate to sell a portion of my bitcoin if that's the only way to solve the problem, after all I can always buy again and continue hodling.

However, lets' not normalize this kind of mindset. Emergency fund is a must, regardless if you are jobless or not. Your investment profits are not your emergency funds, but its intended to build financial freedom and stability in the future. Have your emergency fund separate from investment fund, that's the most effective way to have a successful investment.

[TheUltraElite]

I dont think that never sell bitcoin sentiment actually runs correctly, people spend their coins in times of their needs and in case nearby merchants are accepting them.

If you have an emergency and you needs the bitcoin liquidated to cash, then go forward with it, nothing is bigger than emergencies and money use should not be compromised there.

You can also try borrowing but this carries risk, prefer to liquidate and still if you need money, borrow.

[Shineup]

What's the purpose why we're investing and to be prepared when these unforeseen events have come. That's why the money that we can get from our investments like in bitcoin are for these usages. Even if we want to hold for so long but, if in times of important moments our problems will be solved by that sale, then I will sell some of it. I am not a borrower and I don't think that it's an easy thing to do, so we have our choices and what is convenient in those hard situations, we should choose what's best for us. So that's my choice, I'll sell but not everything.

Same here with me am not good at borrowing, for Bitcoin investment setting out various back up funds including emergency funds is very important but in a situation where all the back up funds has been used in a case of critical conditions selling part of your Bitcoin is not bad at all, unforseen situations will always be there and we don't know the length of it, I consider health conditions as a critical situation that worth selling part of our Bitcoin.

[hyudien]

Of course, I'd sell some Bitcoin if I were in an emergency and my emergency fund wasn't sufficient. Taking out a bank loan would only increase the burden, especially due to the interest. Therefore, it's better to take advantage of what I have first. After all, once things stabilize, we can always buy back in.

[Somto9Light]

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?

As a bitcoin investor you need emergency funds and back up funds this funds is what will guide you throughout the accumulation journey, failure to set up this above mentioned funds can lead you into tempering your bitcoin investment whenever there's emergency. Talking about losing of job, I believe before one will be sack from his job he must have save up enough money or even own a business so this set of people may not temper thier bitcoin investment whenever there's emergency but those that has been working for years and didn't bother to set up a business or even save up enough money is likely to temper thier bitcoin investment because they have no alternative unless they will choose to go for loan to settle the issues on ground which is not even advisable so as a bitcoin investor it's advised to set up emergency funds and backup or reserve funds incase of emergency.

[BlackHatCoiner]

It's, indeed, a stupid question. If emergency hits, and you have money, the answer is you pay. You don't borrow and pay, you just pay. You're an individual, you're not Michael Saylor borrowing at negative rates with a couple of billions of dollars backing him.

Also, "HODLing" is never meant to be forever. Life is finite, and it is great, so you better live it. Bitcoin just repairs the broken time preference of the individuals, allowing them to think of the future. You should absolutely spend some of your money here and there, because some day you're going to die.

[Frankolala]

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.

[malekbaba]

May allah save us from all sorrows.When an emergency comes, I think the best choice depends on your situation. For me, I would rather sell a small part of my bitcoin than take a loan, because debt creates more pressure when you are already stressed. Bitcoin will always give another chance to buy back later, but getting stuck with interest or repayments can make life harder. If the emergency is serious, health or family comes first. If someone offers a short-term, interest-free loan, then maybe that can help. But in most cases, solving the problem quickly is more important than holding every bit of crypto.

[Alone055]

First things first, one should always try to only invest in cryptocurrencies with money that they know won't be needed in the near future, but still, I know that sometimes, even if you have emergency funds, but if the emergency is more severe than normal emergencies, and you might need more money, in such situations, the first thing one could do is see if they have anyone who would lend them some money for the time being, and can wait until their situation gets better so that they can return it. This can save them from selling their assets at a loss if the market is not in an ideal situation for selling.

However, if there is no way for them to get any funds from anywhere, they will definitely have no choice but to sell at least some of their assets so that they can deal with the emergency situation. One thing should always be remembered, we can always make more money in life if we work hard, so we should never neglect important things only because we will waste some money. If someone very close needs you at an emergency, you should do whatever you can to make sure they have all your support, especially if you know that the person you are doing all this for will do the same for you if you are ever in their situation.

[Joy_learns_crypto]

No one is telling you not to sell your bitcoin for when emergency hit people only tell you not to sell your bitcoin because you are panicking about the price or you want to take profit.
I will sell my bitcoin when ever an emergency hit me rather than borrowing. Not selling your bitcoin but borrowing to settle your emergency is like borrowing the money to buy bitcoin.
Although I have emergency funds saving so when emergency hits me I don’t have to sell my bitcoin or borrow.

[SOKO-DEKE]

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?

As for me, it all depends on the condition of the Bitcoin market at that time and it also depends on the interest I will pay if I take a loan. So I need to compare the two conditions and then choose the best option.

Just imagine I bought Bitcoin when the price was around $125k and by the time I need the money, the price has dropped significantly let say Bitcoin has fallen to $50k or $60k. If I have the option to take a loan with a low interest rate, I would rather take the loan than sell any part of my Bitcoin. But in a situation where the price of Bitcoin hasn’t dropped that much, I would prefer to sell part of my Bitcoin investment and solve the problem.

It is because of these kinds of unexpected problems that we are always advised to build our emergency fund, so we can handle such situations. So let  not forget. having an emergency fund is very important in Bitcoin investment.

[JoyMarsha]

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?

I don't think any of us are hodling our Bitcoin forever. There will be times we will love to sell our Bitcoin holdings because of the profits made.
If somehow I faced difficulties, no money at hand, I don't mind selling some part of my bitcoin holdings to sort myself out for the problem I faced. I can't have money in Bitcoin, to let the problem I have that need money to get it solved lingered for long. You know that Bitcoin can be reinvested, but the problem you have at hand, if not attended to immediately, will cause you a lot that you will regret.

[Cryptohygenic]

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?

First holding your bitcoin forever means you will only have a bitcoin portfolio and since you are not holding forever, you apparently have no no bitcoin.
Also, if you have emergency financial needs and you only have funds on bitcoin, borrowing will be a very high risk because you are to pay with interest and at a time of repayment will be problematic because, you still don't know when the price will rise since volatilities is uncertainty and you will have a specified duration to pay your debt.

[MusaPk]

We are investing in Bitcoin to make sure we have sufficient money available in future or at critical times. If you have emergency in real life and for that you need to sell your Bitcoin then don't hesitate in doing that. We can buy Bitcoin later but as OP mentioned in case our loved ones are in hospital and we can help them by selling our Bitcoins or borrowing money then to me selling Bitcoin is the best option. I am against loans because you have to pay interest over it, if we have Bitcoin then why taking hassle of loans.   

[Graph001]

If Bitcoin is your emergency fund, then you are doing things the wrong way. I can indulge your hypothetical scenario here but you must understand that the person who finds themselves in this situation has already made a big mistake. Cashflow management is difficult, nuances and can take many different versions despite what many spam in the Speculation section. It is not easy, and almost nobody knows how to do it properly. I believe only a very small minority of humans actually really consider this topic at all.

A portion of your monthly income must always have 2 components:
1. Bitcoin DCA.
2. Emergency fund.

The percentages can be subjective so I am not going to propose exact allocations. Some people prefer to grow a really big emergency fund that can practically cover any kind of emergency and long periods of difficulty, others do not like having so much money sitting and doing nothing. The key is that you grow both consistently, and never skip. Then when you find yourself in an emergency you will tap your fund first. If you drain the fund you will look for some alternatives such as getting a loan and only lastly would you consider Bitcoin.

Your question is very realistic and many people have to face such situations.

No it is not.

If a really serious situation happens then you should sell some amount of Bitcoin. Because you originally invested in Bitcoin for your future. If life hits you hard then using your savings is not a failure but a wise thing to do. You can continue to buy Bitcoin later if you want.

You are not supposed to use Bitcoin this way, you are mistaken. Bitcoin holdings are supposed to be separated from emergency funds.

You hired Bitcoin and set it up to give you long-term strength

Hired Bitcoin?  

During the crisis, like when my ill child needs to spend a lot of money, or I lose my primary occupation or anything at all, I would definitely not sell some or all my Bitcoin. This is due to the fact that I separate long term investments and emergency funds. I have long-term investment in my Bitcoin, which I would not utilize until the moment passes. But there is also an emergency fund that I have stashed away and can access whenever necessary, or even insurance. I distinguish them since I am not interested in risking my investment objectives, that is I will not sell assets in the declining price trend since I will be losing. An emergency fund is not a complete solution because it cannot be used against unexpected events but it may be useful. And even if I have to use my Bitcoin, the emergency fund will help, and most of my Bitcoin will still be safe.

There's somebody smart here, yay! We are in agreement.  

I think you should be more realistic. If you think that you will never touch Bitcoin even in a real crisis, then the idea that you will never touch Bitcoin is not discipline at all, it is your blindness. Honestly, critical situations never bother your investment philosophy. When life hits you hard or someone in your family is at risk or your income stops for months, the idea of "I will not touch my Bitcoin" will not last even 5 minutes. Because you are a human being, not a robot of some artificial system that life's worst situations will not affect you in any way.

Real emergencies can break your well-laid financial plans. You can save for years, yet one bad day or week can destroy this entire financial system. A major fraud can burn your entire emergency fund like it was nothing.  I would never want something like this to happen to you but God forbid if something like this happens to you then you will not talk about long term investments but then you will rush for any liquid asset and that could be Bitcoin. And one of the most terrible things in our life is that when we need money the most, if we have Bitcoin, its price can go down. Because danger always comes together and that is why it is a serious situation.

How do you protect the future where your present is broken. If you cannot stabilize your present then how do you secure your future. How do you hold on to Bitcoin where your life or your family's life is at stake. If you think that even in a really serious situation you will not sell Bitcoin then you are wrong because then you are deciding to gamble with reality Another hard fact is that reality always wins.