Forced selling, when investor has no choice but to sell.

[aNot!FicaT!on]

I am thinking about one thing, basically in the case of Bitcoin investment we talk about not selling frequently and only holding for the long term. But one thing is that not all selling is due to fear or instability, there are some situations where a person wants to hold Bitcoin for the long term but real life situations can force him to sell which is called forced selling.

Suppose, an investor has bought Bitcoin with extra money excluding his necessary expenses and plans to hold it for a long time in the future. He also has an emergency fund. But suddenly there is a major medical emergency, the cost of which is several times more than his emergency fund. Then what will he do in such a situation?
Usually when someone in the family falls into such an illness and the situation reaches a very critical stage, then people sell their assets and continue their treatment, but in such a situation if a Bitcoin investor says that “I will never sell Bitcoin”, but he has no choice, then how will he greet the situation? And so he has to sell his holdings without looking at the profit or loss.

Similarly, if he loses his job or source of income for a long time, the emergency fund may be able to cover a few months of expenses, but if the income is stopped for a long time, then after that fund is exhausted, the situation reaches a point where it may become mandatory to sell some of the Bitcoin to meet the necessary expenses of living.

Actually, when the situation reaches such a stage, I think it is not wrong to sell Bitcoin without looking at the profit or loss. He is not selling it intentionally, he is selling it out of compulsion, and so it cannot be a wrong decision, because he has to handle the situation and survive and keep his family alive, right? So during such a critical situation, this is not the time to look at the profit or loss, but rather the time to keep himself and his family alive.

However, the entire investment should not be sold, but the situation can be managed by selling a part as needed, you should sell as much as you need according to the situation and get yourself back to normal as quickly as possible.

It is certainly important to have a plan to hold Bitcoin in the long term, but people's lives, families and urgent needs are more important than that plan. However, after this, you should deal with the urgent problem as quickly as possible and return to financial stability, so that there is an opportunity to hold Bitcoin again in the future.

[Pablo-wood]

But one thing is that not all selling is due to fear or instability, there are some situations where a person wants to hold Bitcoin for the long term but real life situations can force him to sell which is called forced selling.

This is why it is always advised to invest with decretory funds. Money kept for investments are not funds that might be needed anytime soon and for one to be a successful it is best to have other streams of income that can handle emergency bills except there be an unavoidable situation that might warrant selling to meet this needs.

Suppose, an investor has bought Bitcoin with extra money excluding his necessary expenses and plans to hold it for a long time in the future. He also has an emergency fund. But suddenly there is a major medical emergency, the cost of which is several times more than his emergency fund. Then what will he do in such a situation?
Usually when someone in the family falls into such an illness and the situation reaches a very critical stage, then people sell their assets and continue their treatment, but in such a situation if a Bitcoin investor says that “I will never sell Bitcoin”, but he has no choice, then how will he greet the situation? And so he has to sell his holdings without looking at the profit or loss.

Extra money isn't really extra if it doesn't have a shield against unplanned expenses. There are always situations in life that we cannot predict, especially serious medical emergencies. That is why I think people should avoid putting every available asset into Bitcoin while ignoring their need for accessible cash.

Bitcoin is a long-term asset, but it should not become more important than someone's health or family's basic needs. If selling Bitcoin becomes necessary to save a life, then selling it is not a failure or a violation of some never sell rule. It simply means the purpose of money has changed at that moment.

[Jasmyne]

But one thing is that not all selling is due to fear or instability, there are some situations where a person wants to hold Bitcoin for the long term but real life situations can force him to sell which is called forced selling.

This is why it is always advised to invest with decretory funds. Money kept for investments are not funds that might be needed anytime soon and for one to be a successful it is best to have other streams of income that can handle emergency bills except there be an unavoidable situation that might warrant selling to meet this needs.

And that’s why it is also advisable to be sure of your income before investing, don’t just invest because others are investing and I can assure you that someone with no good source of income can’t invest.
Having discretionary fund is the most important because that’s what you will use to invest but your emergency funds is very important too, more especially low income earners. A low income earner who invests bit by bit to be able to accumulate enough bitcoin should never neglects the need of an emergency funds, because if he neglects it, it will put him in a tight position where he would be forced to sell when having an urgent need since he barely earns enough funds.

[DiMarxist]

This is one reason why people need to have a good financial plan and expenditure. When it comes to investment of any nature it always good to invest with discretionary funds. There should be Money that should be ment for the purpose of emergency like the situation that you are saying here. Except the medical emergency is a life threatening one a good financial planning can solve problems like this.

But if the medical emergency is life threatening and the cost of treatment is overwhelming and is beyond your current financial capability then, you have no choice but to save your life First before thinking about investing and Making profit at the first place.

[I_Anime]

Is actually simple , that’s why I usually tell folks that bitcoin investment is not a race, do it at your own pace . Make sure you are investing the right way not the way that will make them thing that you gambling instead of investing. Gambling , like going into investing without allocating your money properly . Many are trying to be aggressive to the point they will start using money that’s suppose to be meant for emergency and back up funds .

Like they say health is wealth. There are some scenarios that will require you selling off from your bitcoin , in order to settle a certain emergency . But still having an emergency fund will also help to light things up , so for instance your emergency money wasn’t enough , and you are required to take from your investment to complete the amount needed for that emergency, your emergency funds is still going to cover up some part reducing the amount you are going to take from your investment.

[Kelward]

E get di proverb wey de for my native language wey concern dis matter and I go try to translate am as much as I can for pidgin English "if you see wetin pass yam you go sell your yam barn" so your yam barn na your Bitcoin wey be your store of value. E get di kind important expenses wey be emergency wey go happen to you and if you no see anywhere to raise money to solve am you no need to think twice before selling your Bitcoin to solve am.

As far as say di value of wetin you want to spend your Bitcoin on worth am e go make sense to sell am because if you still hold your Bitcoin and lose your precious life or di life of your loved ones e no go make sense at all. Your Bitcoin na your property and you no go hold am indefinitely, if you plan to hold for 10 years and an important emergency wey pass your power come happen before dat time abeg make you sell am because na who de alive and healthy go fit to do DCA strategy and begin to accumulate am again.

[Grace333]

From my experience there is a high chance that this might happen when Bitcoin investment is made without setting out an emergency fund and when an emergency comes up there is no way that it can be avoided because it might be anything that requires maximum attention, medical bills and other unexpected events that might happen. In order not to put yourself in such a situation it is important to make plans to reserve an amount of money meant to sort out emergencies. Lastly, forced it is important to have a source of Income because this also helps reduce the urgency of forced selling.

[EluguHcman]

I am thinking about one thing, basically in the case of Bitcoin investment we talk about not selling frequently and only holding for the long term. But one thing is that not all selling is due to fear or instability, there are some situations where a person wants to hold Bitcoin for the long term but real life situations can force him to sell which is called forced selling.

I think puting these whole factors you have specified, there is actually non of the investors that is selling their Bitcoins in the rightful action.
By right as an investor, you are to avoid any pressing situations that would warrant you to sell by force or market emotions.
On the process of planning your long term investment you should be preparing to have savings as reserved to use in sorting your immediate needs and as well, work on controlling your emotions against negative news or even short term market actions.so that.

Like the saying of "don't put all your eggs in one basket" may imply, some investors are ignorant to that and invest all their incomes in Bitcoin and did not consider that they are investing for the long term and they will definitely have some personal expenses to take care of.

Although, there are circumstances that will occur and forces one to sell which can be considered not so bad but selling by market news is a decision that will make you regret it in time coming.

[SatoPrincess]

This na one of those cases of Who no go, no know. I don dey such situation before, and I sell my bitcoins. No go risk your health say you dey save bitcoins because na who dey alive fit count money. Bitcoin no dey run, when things come back to normal you fit always buy am back.

[Princess Leah]

From my experience there is a high chance that this might happen when Bitcoin investment is made without setting out an emergency fund and when an emergency comes up there is no way that it can be avoided because it might be anything that requires maximum attention, medical bills and other unexpected events that might happen. In order not to put yourself in such a situation it is important to make plans to reserve an amount of money meant to sort out emergencies. Lastly, forced it is important to have a source of Income because this also helps reduce the urgency of forced selling.

You're right but the OP is referring to a situation that one's avaliable emergency fund is not enough to settle, like life threatening situations that requires more funds. At that point i think the person has to put life first and do everything possible to survive, yes there would be loss in the investment but when life is threatened then loss doesn't really matter cause the person can restart the investment when all is well.

 Well, such kind of situation doesn't always occur but if it means that the person can sell some portions and add to the available emergency funds to settle the health bill then is not a bad decision, as far as life is involved then saving it comes first. "Afterall where there's life there's hope".

[Obim34]

It is certainly important to have a plan to hold Bitcoin in the long term, but people's lives, families and urgent needs are more important than that plan. However, after this, you should deal with the urgent problem as quickly as possible and return to financial stability, so that there is an opportunity to hold Bitcoin again in the future.

Make sure to pray you don't find yourself in such a situation, selling at that instance is valid. Especially in a death and life situation, you don't compare the value of life and whatever possession you've acquired, success and wealth are sweet, however, it doesn't come close to a life on the line, if selling your Bitcoin is the price you have to pay to redeem yourself, consider it a good reason to sell off early, nobody has the right to judge.

[CryptopreneurBrainboss]

It is certainly important to have a plan to hold Bitcoin in the long term, but people's lives, families and urgent needs are more important than that plan. However, after this, you should deal with the urgent problem as quickly as possible and return to financial stability, so that there is an opportunity to hold Bitcoin again in the future.

Always try your best to prevent situations that only ends in you selling off your investment come your way but there are times you can't run away from unfortunate situations like this and when this happens, go ahead and solve the problem if there's no way to get the money because it's important to not have any life threatening problem for you to be able to hodl well. Emergency funds shouldn't be joked with as they're supposed to solve problems like this that's why I like to have multiple backups for emergency and they can be kept in different forms like fiats, property or other means. Selling your Bitcoin should always be the last option because that's a golden opportunity you're letting go of like that and when you get back on your feet,  invest back immediately but don't forget to keep better emergency funds.

[icebar]

Investing in Bitcoin depends entirely on one's own plan. An investor may encounter unforeseen circumstances, if it is within his means, he will certainly try to solve his problem. But if it is beyond his means, he must be forced to do so. Of course, family or life comes first, then investment, but there must be enough effort to solve the problem. There are many investors who forcefully sell Bitcoin, when necessary, but when he has the ability, he may lose interest. Therefore, Bitcoin should be held if possible, and if not, then sold as needed. Only that investor knows best what he needs. The investor must carefully review what kind of asset Bitcoin is, what its prospects are in the future, and how much improvement he wants in his financial situation. However, in my opinion, although it is difficult, if you can hold a portion of your Bitcoin without selling it completely, there will be enough interest to invest in the future.

[Joy- maker]

I am thinking about one thing, basically in the case of Bitcoin investment we talk about not selling frequently and only holding for the long term. But one thing is that not all selling is due to fear or instability, there are some situations where a person wants to hold Bitcoin for the long term but real life situations can force him to sell which is called forced selling.

This your thread be like textbook, so I no finish an. The fact is that there are people who have decided within themselves that they will hold the Bitcoin they are accumulating for long term before deciding to sell. But nobody knows tomorrow and now hard time don come heat and the only way out after spending their emergency funds na to sell their bitcoin investment. As person wey life don put for hot pot, if na life and death you gas sell your bitcoin make you take see front first, because person wey dey alive fit still buy back the bitcoin wey e sell later and continue e long term holding.

[Odusko]

It is certainly important to have a plan to hold Bitcoin in the long term, but people's lives, families and urgent needs are more important than that plan. However, after this, you should deal with the urgent problem as quickly as possible and return to financial stability, so that there is an opportunity to hold Bitcoin again in the future.

Always try your best to prevent situations that only ends in you selling off your investment come your way but there are times you can't run away from unfortunate situations like this and when this happens, go ahead and solve the problem if there's no way to get the money because it's important to not have any life threatening problem for you to be able to hodl well. Emergency funds shouldn't be joked with as they're supposed to solve problems like this that's why I like to have multiple backups for emergency and they can be kept in different forms like fiats, property or other means. Selling your Bitcoin should always be the last option because that's a golden opportunity you're letting go of like that and when you get back on your feet,  invest back immediately but don't forget to keep better emergency funds.

Those that have surplus capital can easily hold bitcoin for long term without forceful selling to cover up for emergency expenses like health, bills and others because before they invest in bitcoin for long term they will also have the same budget for their emergency funds balance; that way, they are far from touching their bitcoin investment to cover household or emergency health expenses.
Even at that, we must also acknowledge that no investment no matter the duration set for it, cant outweigh your medical care, housing bills and other's it call forceful selling, which is very different from panic selling when we're dealing with bitcoin portfolio liquidations. Since health is wealth, one can always buy back whatever bitcoin they use to cover their health expenses.

[Different patterns]

I am thinking about one thing, basically in the case of Bitcoin investment we talk about not selling frequently and only holding for the long term. But one thing is that not all selling is due to fear or instability, there are some situations where a person wants to hold Bitcoin for the long term but real life situations can force him to sell which is called forced selling.

I understand your sentiment here, but I will only talk about this paragraph, where you talk about real life situations force some people to sell their bitcoin holding, yeah, I believe that real life situations exits, to anyone at unexpected moments, which is very understandable. But what I have to say is that, bitcoin investment is totally different from any other investment, that alone should make any investor who really want to invest, should treat bitcoin separately, initiate bitcoin is long term investment, at least before begin you should have your plan, any situation that will make you sell your bitcoin, you can find solutions to it right from your starting, by creating backup funds or emergency funds, which can help you whenever your are in need of money or you have little emergency, without you selling your bitcoin.

[Jubilee58]

Well, it is true that because of circumstances surrounding someone, you can be forced to sell your Bitcoin investment regardless of weather you are on profit or loss, and especially when someone is not buoyant enough to handle such situation. So far we cannot eliminate contingencies or unforeseen events in the course of our Bitcoin investing and investor might tamper with his or her investment in other to solve any financial issue confronting him. However, keeping our investment safe, and secured till the time of maturity should be our priority because the reason why we engage in some of these investment is not to solve problems with it but for future financial growth, and financial stability. If you allow yourself to sell your investment when it is not properly matured, you are definitely doing more harm to yourself than good, and instead I recommend looking for an alternative means, you can borrow money, and still repay with time instead of tampering with an investment that will change your financial story on the long run.

[HajiBagi]

I won’t blame anyone for selling their bitcoin when they don’t have any choice, i see many people are saying that it is good to invest with what you can afford and some are saying that is why they advise people to have an emergency fund or invest with discretionary capital when they want to invest in bitcoin, sometimes don’t have a choice, and we can’t change what life have destined to happen to us, there are financial problems you will have that your emergency funds can not solve the problem.

This kind of situation has happened many times and you have to sell your bitcoin if you don’t have a choice, because you can not have a bitcoin and be thinking about borrowing money from other people or taking loan, we invest for the future but when we are in a tight situation that we don’t have a choice, we need to sell our bitcoin and use it to solve our problems, when there is life, there is hope.

[Davidloki]

A critical situation other than health crisis is not really a tangible compulsion to sell assets, that's if the assets was not bought under duress or with unstable finances. As much as it's important to always invest with discretionary income, in the case of a health issue, I don't think anyone would still consider holding their assets while their life is on the line.

The purpose of long term investment is strictly for profit generation, and there should be a target for that investment too. A price close to the target price is also not a bad sell option, there's no need to criticize anybody selling to settle challenging issues.

[Obulis]

Some situations or circumstances leaves the selling of asset(s) as a way out of this time inevitable, mostly when there's actually nothing else to do (emergency funds is not enough, maybe family and friends has done the best they can also ) and this is to avoid similar or harder situations or circumstances in the nearest time. Some can even be a life or death situations like medical problems. Under such condition, selling your Bitcoin asset (favourable when it's just part of it) becomes a good idea. That means going against your holding plan but not to forget these isn't for just anything but a situation where being helpless might not even be enough to qualify. Like that of life and death, it's when you are alive that you can keep Bitcoin accumulation on.
But in a case whereby there's other assets (physical), I would suggest selling them instead of Bitcoin.

Nobody wishes for a situation like that, but these makes it important for investors to observe good investment plans while accumulating Bitcoin because that will help in situations like this. Like appropriate funds allocations.

Some things are actually hard to imagine, just like these matter, situations where you are left with no option except selling your asset.