How to avoid forced selling Bitcoin holding in financial problem

[Creeper0]

6. You should have the intention to hold for 4 to 10 years or more.

If you lack a backup fund and are investing without discretionary funds, can a 4-10 year holding objective protect your funds? Long-term goals can be price-sensitive, forced selling depends on your investment strategy. Your investment strategy is your safe journey plan to reach the goal you have set for the long-term goals. Protective strategies play an effective role in ensuring that you do not have to sell in the middle of the investment or even touch your investment funds.

Even if the market price falls, there is no problem, because you have a long-term goal and you are not selling right now. Even if a situation arises where you are forced to sell your investment, there is no problem, because you have a backup fund and a defensive strategy.

[Tmoonz]

If you are a bitcoin investor and you don't want to get caught in an unexpected situation with your investment, then try to have an alternative plan for the additional coins you are going to hold in a separate wallet for emergencies. We don't pray for such things to happen, but there are times when things could come up unexpectedly. You will need to exchange your coins to meet some basic needs as a matter of urgency, and that is where you consider your additional fund meant for any form of emergency in cryptocurrency.

Of course no body wish to be found in such situation, and it is not a thing of saying that you must have it all being figured out before getting started, but while in the process of your investment, it is important that we should consider the possibility of such worst scenario happening so we can keep making preparations ahead of time even if it doesn't happen, we can't say that selling our Bitcoin is completely wrong if all your backup funds are exhausted at the cost of solving an emergency problem. You should always know that emergency funds should be kept where it can be easily accessible.

[Youngrebel]

Using emergency funds to buy the dip has to be one of the worst mistake that any investing would ever make because at some point you are going to need money to solve an important need and the reason why it is called an emergency fund in the first place because these needs can come up at anytime. This is your backup in case you have financial issues and when you don't have anything to replace that amount at that point in time you are going to end up selling your coins.

About the second point that you made, it is actually quite understandable but it is almost similar to an emergency fund. if we intend to hold bitcoin more than 5 years we would need to plan that can keep money coming in otherwise there's no way this investment can work.

[Cryptomultiplier]

If you are a bitcoin investor and you don't want to get caught in an unexpected situation with your investment, then try to have an alternative plan for the additional coins you are going to hold in a separate wallet for emergencies. We don't pray for such things to happen, but there are times when things could come up unexpectedly. You will need to exchange your coins to meet some basic needs as a matter of urgency, and that is where you consider your additional fund meant for any form of emergency in cryptocurrency.

Of course no body wish to be found in such situation, and it is not a thing of saying that you must have it all being figured out before getting started, but while in the process of your investment, it is important that we should consider the possibility of such worst scenario happening so we can keep making preparations ahead of time even if it doesn't happen, we can't say that selling our Bitcoin is completely wrong if all your backup funds are exhausted at the cost of solving an emergency problem. You should always know that emergency funds should be kept where it can be easily accessible.

I like to bring up the instance of how Microstrategy sold some of its BTC holdings to cover some major expenses for the company, and this was in the midst of flying the banner of accumulation until they needed the funds and had to sell.

Even though they tried to buy more BTC to hold, it doesn't dispell the fact that they did sell after some period of accumulation and any investor mostly retail investors could find themselves in such a situation where funds are scarce and instead of to borrow, can liquidate some of their holdings to sort the pressing need and re-accumulate when the dust has settled.
There's no shame in trying to survive mostly when the economy is not quite favorable and income is meager to say the least.

[Audrey Simmons]

If you are a bitcoin investor and you don't want to get caught in an unexpected situation with your investment, then try to have an alternative plan for the additional coins you are going to hold in a separate wallet for emergencies. We don't pray for such things to happen, but there are times when things could come up unexpectedly. You will need to exchange your coins to meet some basic needs as a matter of urgency, and that is where you consider your additional fund meant for any form of emergency in cryptocurrency.

It won't work, this survival pattern will not work, do not bother to give it a try.

What you explained is trying to hold Bitcoin as emergency funds, you cannot hold a volatile asset as part of your emergency funds, your emergency funds should be in a stable currency, gold is better as an emergency fund over Bitcoin, or hold in local fiat, but worry about inflation.

[Qhunman]

If you are a bitcoin investor and you don't want to get caught in an unexpected situation with your investment, then try to have an alternative plan for the additional coins you are going to hold in a separate wallet for emergencies. We don't pray for such things to happen, but there are times when things could come up unexpectedly. You will need to exchange your coins to meet some basic needs as a matter of urgency, and that is where you consider your additional fund meant for any form of emergency in cryptocurrency.

Does it matter how many wallet that you create to store your bitcoin? Because it won't make  any difference since you will have to tamper with your bitcoin to take care of the emergency situation that is in front of you. Instead what you should be building seriously is your emergency fund and your reserve fund simultaneously. You need to build your emergency and reserve because it will serve as a shield to your bitcoin investment since emergency can happen anytime. It is actually wrong to used your bitcoin for any emergency situation, it doesn't make you any different from a gambler.

[Franklyn-wood]

Using emergency funds to buy the dip has to be one of the worst mistake that any investing would ever make because at some point you are going to need money to solve an important need and the reason why it is called an emergency fund in the first place because these needs can come up at anytime. This is your backup in case you have financial issues and when you don't have anything to replace that amount at that point in time you are going to end up selling your coins.

About the second point that you made, it is actually quite understandable but it is almost similar to an emergency fund. if we intend to hold bitcoin more than 5 years we would need to plan that can keep money coming in otherwise there's no way this investment can work.

It becoming a common experience for many Bitcoin investor to use emergency funds during  dip which is a wrong approach and creates pressure to the investment, as it becomes more frightening when there are signs that the market is dropping in value, the investor might want to quickly recover his or her money to remain safe with out losing the original value of of the capital invested in the business.
Having to set more secures and long access to the holdings makes it very difficult to easily think of selling the coin out when there is memergency.

[Byebyebtc]

If you can not handle your emotions to keep some levels of rules in Bitcoin, then you should not bother investing in Bitcoin, because what is the use of investing when you will end up selling in without profits.
At the end of the day we all invest for profits, and if your not willing to wait for some couple of years to make that profits, then there is no use to wast your time investing

I will advise individuals not just to learn about Bitcoin, but they should also train their emotions as well

[CryptopreneurBrainboss]

Let us tell you about your situation and give you an idea for those who have already started investing. If Bitcoin will down 50% tomorrow and at the same time your income stopped for a few months, do you have enough cash to run a basic life without selling Bitcoin?

Them never serious to invest if them no get emergency funds and then every day to day funds to use run house necessity wey we go call salary or wages as income wey you dey get then nononvest inside Bitcoin because say that's the only reason why you won't sell. E no matter how you think say your mind strong reach or you go fit endure until the market begin dey make sense.

 Your weight no reach unless you get  income don't  bother, no say you go invest then find money for food tomorrow as no be so things they happen and na why income na important thing to consider before investing in general, no be only Bitcoin matters self.

Even if na DCA wey you want to dey use, that one self need  better job to fit achieve better quantity and outcome. No go follow person mouths say you go fit withstand the makwt sell pressure as we never even see anything, this one wey Bitcoin done fall so na small, unless say we done reach bottom but I doubt.

[Saltysugar99]

If you can not handle your emotions to keep some levels of rules in Bitcoin, then you should not bother investing in Bitcoin, because what is the use of investing when you will end up selling in without profits.
At the end of the day we all invest for profits, and if your not willing to wait for some couple of years to make that profits, then there is no use to wast your time investing

I will advise individuals not just to learn about Bitcoin, but they should also train their emotions as well

If you can't handle emotions, investing becomes risky. But if someone invests with discretionary income, it becomes easier to control the panic that occurs when the price of bitcoin drops. Because if you think about it, when a person invests in bitcoin with his needed money, he will not be able to accept it easily if the price drops. His tension will increase and if he thinks at that moment and sells bitcoin to reduce his loss, he will make an even bigger mistake. Because the price changes in short time of bitcoin is a common occurrence, but when someone sells it depending on the price, he loses his entire bitcoin holding. If he had hold bitcoin, he would have had the opportunity to profit if the price increased in the future. In the end, a strong Bitcoin investor does not mean someone who has no emotions. A strong investor is someone whose plan, cashflow, backup funds and expectations are so balanced that even if he has emotions, he does not easily ruin his long-term strategy.

[Jostern]

Majority of investors do not have a plans for emergency or unforeseen financial losses, Nobody wants to find themselves in a precarious situation, that would leave them to selling their Bitcoin investments holding, I think that is why as an investor that have gotten to his 3 months of investment is always advised to start his or her backup funds, emergency funds and reserved funds which can help with sustaining our Bitcoin investment should in case of a emergency situation, Buying and Holding Bitcoin for a longest term is for the future, and we can’t afford to loose our investment when we have a plan of 1 or 2 circle, there is every possibility that we might end up having an emergency situation that would require money for solutions, or when we find ourselves in a financial Challenge, it’s also better that we also invest in bitcoin with our discretionary income, and certain amount of money that we can actually afford to loose.

[CryptoHeadlineNews]

If you keep these things in mind while investing, even in bad economic conditions, Bitcoin holdings will not be directly affected.

1. You should buy Bitcoin only with discretionary income.
2. You should pay more attention to creating a backup fund.
3. The DCA amount should be kept flexible. This means that the DCA amount can be changed as income increases or
4. You should try to make cash flow strong over time so that the possibility of a worsening financial situation decreases.
5. You should never use emergency fund for dip buying.
6. You should have the intention to hold for 4 to 10 years or more.

Let us tell you about your situation and give you an idea for those who have already started investing. If Bitcoin will down 50% tomorrow and at the same time your income stopped for a few months, do you have enough cash to run a basic life without selling Bitcoin?

I totally agree with you on these factors mentioned above which an individual needs to consider in other to avoid been forced to selling his Bitcoin at an early stage in times of great financial needs, and the Bitcoin is his only source. And it's true that using a discretionary income for this will literally income will definitely not affect you that much, simply because it was a money which you weren't in immediate need of it for that time. And secondly, having a specific time duration when you intend t hold your bitcoin will also help you to not sell until the said date arrives, most especially if you are disciplined. Which is why having everything mapped out will be of great advantage to your bitcoin journey.

[Livingleged]

Majority of investors do not have a plans for emergency or unforeseen financial losses, Nobody wants to find themselves in a precarious situation, that would leave them to selling their Bitcoin investments holding, I think that is why as an investor that have gotten to his 3 months of investment is always advised to start his or her backup funds, emergency funds and reserved funds which can help with sustaining our Bitcoin investment should in case of a emergency situation, Buying and Holding Bitcoin for a longest term is for the future, and we can’t afford to loose our investment when we have a plan of 1 or 2 circle, there is every possibility that we might end up having an emergency situation that would require money for solutions, or when we find ourselves in a financial Challenge, it’s also better that we also invest in bitcoin with our discretionary income, and certain amount of money that we can actually afford to loose.

For this our country e no they easy to maintain good standards of living together with investment like bitcoin and come get enough emergency funds at the same time. Because wetin most people dey earn Na just from hand to mouth, Na just few persons they actually get that money wey them fit even dey get reasonable discretionary Income and emergency funds.
E get wetin I Dey always see for here wey people dey always advise people make them no sell bitcoin at all cost because say them still dey try build portfolio. For me I no dey support that one, It’s all depends on the situation wey go make holder sell part of him coin and when e get am clear again him go continue with the accumulation again. E go too dey foolish to me if someone get bitcoin but facing serious life challenges and him no gree sell to handle that situation to comeback stable again. No be who dey alive they then plan with?

[Tetu100]

Nobody prays to lose their source of income because it must affect your way of living. Since, you have emergency funds on ground, you can use it to survive for the main time before you get another means of income. However, having multiple sources of income is good like setting up a business couple with your job to make life easier because you cannot lose both sources of income at the same time.

Sometimes it’s actually easy to say one should seek multiple income but do we have that opportunity to do that, most even struggled before getting the main income and when they lose it that’s all. Personally what I usually say to people that unfortunately lose their source of income and do not have any other one and also tehor emergency funds doesn’t seems to measure up or help take them out of problems is to liquidate their bitcoin even though it’s actually small percentage because you cannot keep holding on to an asset and be living in problems.

But to avoid situations like this, people need to take action like diversifying their source of income before they get faced with any problem, one shouldn’t be comfortable with their primary source of income, even if you don’t get an extra job, take some funds out and build a business. Yes business is hard but not trying any is more difficult. I think business is the easiest secondary income you can add to a primary one

One important thing we have to portray as humans is to be proactive in live, because its helps alot. We don't have to wait for the problems to come first before looking for a way of solving it, neccesary measures have to be put in place to help fight it when it comes. There is nothing wrong for someone to set up other source of income maybe from your main stream of income. It don't necessarily need to be too big at once, but at least step by step you can figure out something meaningful to aid up just in case of tomorrow you wouldn't be stranded or helpless. However, our emergency funds alone can't save us in times like this, what if your emergency funds get exhausted and you haven't secure a job yet, what will now  happens,  the best in every situation is just to make up a saver ground on time  or prepare ahead is way better.

[ZeroVinsonN]

Who's us?
You know, we can try to maintain a strong cash flow but this is Nigeria and it's definitely not easy for one person to try on multiple jobs or even create multiple businesses for themselves, a vast majority of people can only manage their one job or business and don't have any second option to run to. It's good to advise people to take these measures but how they are going to do it is a different matter all together.
I don't disagree with your list though, we should never be willing to invest with our emergency fund and just like how our discretionary income will most likely be flexible out investment with the DCA/NCA should be too.

I disagree with you dude, how do you mean when you said it is not easy for one person to creat a multiple business? That is not true because a person can open or create as many business as possible provided they have the capacity to do that but the one I will agree is that it is not really possible or easy for a person to work multiple places unless those jobs are part time and not fulltime and this multiple jobs can be really exhausting but in the case of multiple business it is very easy as a matter of fact Dangote has multiple business/companies.

So now you want to compare an average Nigerian to Dangote, how does that even sound realistic to you. Maybe you can create and hold multiple businesses but don't go assuming that doing the same thing is easy for everyone else, some people with one business are barely making enough from it and you expect them to be able to run a second one. Walk into the streets and ask business owner you see how many of such businesses they have and see what their response to you will be, so yes it is not impossible for one person to be able to run multiple businesses you can't just come out and say it's easy, after all I never said it was impossible, I just said it wasn't going to be easy.

[Obim34]

I totally agree with you on these factors mentioned above which an individual needs to consider in other to avoid been forced to selling his Bitcoin at an early stage in times of great financial needs, and the Bitcoin is his only source. And it's true that using a discretionary income for this will literally income will definitely not affect you that much, simply because it was a money which you weren't in immediate need of it for that time. And secondly, having a specific time duration when you intend t hold your bitcoin will also help you to not sell until the said date arrives, most especially if you are disciplined. Which is why having everything mapped out will be of great advantage to your bitcoin journey.

Bitcoin doesn't cause much stress, mentally and emotionally, compared to the majority of real assets. The only stress, however which I consider to be normal for all investors, is to learn all you need before utilizing your capital, the discussion concerning how to invest in Bitcoin is being discussed like it seem too complicated. Bitcoin is one of the simplest investments anybody can get into, make researches and do accordingly.

[Saltysugar99]

Let us tell you about your situation and give you an idea for those who have already started investing. If Bitcoin will down 50% tomorrow and at the same time your income stopped for a few months, do you have enough cash to run a basic life without selling Bitcoin?

Them never serious to invest if them no get emergency funds and then every day to day funds to use run house necessity wey we go call salary or wages as income wey you dey get then nononvest inside Bitcoin because say that's the only reason why you won't sell. E no matter how you think say your mind strong reach or you go fit endure until the market begin dey make sense.

 Your weight no reach unless you get  income don't  bother, no say you go invest then find money for food tomorrow as no be so things they happen and na why income na important thing to consider before investing in general, no be only Bitcoin matters self.

Even if na DCA wey you want to dey use, that one self need  better job to fit achieve better quantity and outcome. No go follow person mouths say you go fit withstand the makwt sell pressure as we never even see anything, this one wey Bitcoin done fall so na small, unless say we done reach bottom but I doubt.

I agree with you. It is not possible to hold bitcoin easily with just a strong mindset. An investor should have a strong income flow so that he has the ability to run his daily expenses. Along with this, he should have a cash flow to build a back up fund. If all these foundations are not ok, then no matter how high the bitcoin market goes, it will ultimately not be able to protect you from the financial stress of your life for a long time. Then the issue of selling bitcoin is not only due to emotion, it is due to wrong financial management. If a person decides that he will do DCA in bitcoin for more than 5 years. But in the meantime, if he invests in bitcoin with his required money, then if any emergency situation arises, then he will not be able to keep bitcoin holding properly. For this reason, an investor should be prepared along with a strong mindset. Especially when the bitcoin market price is down 20% or 30%, a prepared investor may be able to handle it properly.

[iBaba]

~~~

Most people overlook this important part of bitcoin investing, your goal should not just be accumulating more bitcoin you should also build enough financial stability that you will not be forced to sell at worst time, it is easy to say never sell when your income is stable, but sometimes emergency can change the situation. If bitcoin drops 50% and at the same time your income disappears that emergency funds become important as your bitcoin that you are holding.

Personally, DCA should come after basic needs, savings for emergency and your cash flow should be covered appropriately if not you may end up buying with the money you need to survive. The question is are we investing for long term or we are hoping that we will not face an emergency before the next bull market

[Nathrixxx]

Bitcoin will always rise, and at the same time, when it is due for it, we are not expected to make our decision based on how we see the market appear; instead, we have to speculate to know the season and the particular direction the market is taking before making a move.

Sometimes we may be financially challenged and think of falling back on our bitcoin assets by selling from it to meet certain needs as the demand arises; hence, you will discover that some investors will have an additional fund that is meant for impromptu use to prevent themselves from selling at a loss on their bitcoin investment.

[Asiska02]

Let us tell you about your situation and give you an idea for those who have already started investing. If Bitcoin will down 50% tomorrow and at the same time your income stopped for a few months, do you have enough cash to run a basic life without selling Bitcoin?

One will only lose hope and will resort into selling if they didn’t plan well before they started investing. Bitcoin investment necessitates a certain money known as discretionary income to be used for investment, when you don’t own or have such money, investing for the long term may come with some challenges when the unforeseen hits. Bitcoin dropping by 50% is a huge advantage to those that want to buy more, not a sign to start selling off your bitcoin.

Without a proper plan and savings to rely on, when you don’t have a job, your bitcoin will be your first plan of liquidation to have access to the money there. But sometimes the nature of the market will not favor you to take from there, the need why investing while having another savings for emergency is compulsory. Bitcoin is best invested into for the long term, so having a back off funds for the long term to see you through your investment in Bitcoin is also a necessity to have prior or during investing in Bitcoin.