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

[Bright0515]

A lot of people end up selling their coins not because they don't have an emergency fund set aside but people forget that there is a possibility that the emergency funds being set aside might not actually be enough to sort out certain needs that arises, this puts investors under a financial constraint that makes them have no other choice but to sell their Bitcoin, there are situations that pushes people to make such decisions and you cannot really blame them for it, things just happens that way. But it is advisable to always make contingency plans so you can keep your investment running.

[Hyphen(-)]

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.

If it comes it’s such situation, as long as you are able to solve the problem with the Bitcoin you have been holding, then there is no regret, because the main essence of the investment is to be used in the future, if you can’t have anything to use, that’s when you will regret, but if you are able to use the Bitcoin investment you have when you have no option, it has served its purpose; you only need to hire more to be in your feet and then plan another investment.

 There is no reason for you to overlook your investment and take loan or borrow money to solve emergent problem, investment can wait, save your life first and plan to buy another Bitcoin.

[Big Dirams]

A lot of people end up selling their coins not because they don't have an emergency fund set aside but people forget that there is a possibility that the emergency funds being set aside might not actually be enough to sort out certain needs that arises, this puts investors under a financial constraint that makes them have no other choice but to sell their Bitcoin, there are situations that pushes people to make such decisions and you cannot really blame them for it, things just happens that way. But it is advisable to always make contingency plans so you can keep your investment running.

You are right because some investors end up selling their bitcoin because their emergency funds wasn’t enough to settle their problem but it is always advisable that we should build our investment along with our back up funds, emergency funds, and reserve funds so we don’t get caught up in situations like this and situations like this are likely to occur those that haven’t been in the system for long so probably they don’t have much emergency funds to to clear up the emergency or maybe some short term holders that called themselves investors but literally they are just trader so they neglect to spare some back up funds just because they will be selling soon.
 But someone who have been in the system for long won’t get really messed up in situations like this to sell their bitcoin.

[Dr.Bitcoin_Strange]

Well, I agree with you, there are some financial situation that one might be in and the only option the person is left with is to either take loan or sell their Bitcoin, it's quite understandable but to avoid such things from happening, while you are investing on Bitcoin, also have a savings account that you are regularly keep emergency funds, so that even if an emergency arises and the money you have in your savings is not enough to solve the problem, you will not have to sell all your Bitcoin but would only sell a little portion of your holding. Like you said, if the person is jobless for a long time, they can spend all their savings, that's true but in such situation the person has to try their best to get a job before the emergency funds finishes. Imagine that the person is not serious with job hunting and they spend all savings and also all the Bitcoin they had, how will they survive? That's why I said, let the person make sure they secure another source of income before they run out of funds.

[Sobz]

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.

Their are some type of life challenge one will face it will demsnd you selling your hodling even if you invest with your discretionary, situations like this proves that profit in Bitcoin investment is not guaranteed.  And if anyone is in terrible condition that has to do with life snd dead, please attend to your life first. Bitcoin hodling is not a life sentence. Hodling has yo fo with discipline by looking down at every other things but to concentrate with hodling but this is not with something that can cause one losing ones life.

[Shadiq]

This is a real fact. Sometimes a situation arises where even all your assets including your savings cannot play a full role, this is not a failure of financial planning, but a victim of circumstances. Many may be directly or indirectly familiar with such incidents.

A strong plan is made around realistic unexpected events. But emergencies are always unexpected. Sometimes this emergency can suddenly appear and surprise you, and sometimes it can surprise you with its size or devastation.

If you have a good financial plan and a strong backup fund, then such a situation will definitely take some time to arise. If you suddenly need such a huge amount of money that even the saved money and all the backup funds combined are not able to handle it, then it is better to prioritize your life rather than investing. Even if you are close to your goal, fight that emergency with all your strength without thinking about profit or loss, this is not a failure.

[PremiumcryptoHub]

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.

Building an emergency fund is not taken seriously in the early stages of Bitcoin investing, but in addition to investment, emergency fund is needed during financial downturn, for which we should all save Naira equivalent to three months or six months of expenses. First of all we should pay attention to the discretionary income for Bitcoin investment, through which the investors will be able to invest easily, but in addition to the emergency fund, the investors should also pay attention to the backup savings because if the means of earning cash flow like investing in Bitcoin is stopped for a period of time, then it will be possible to fill the gap from the backup savings.

So planning is essential to hold Bitcoin investments for the long term, along with discretionary income,Buying Bitcoins regularly and storing Bitcoins in a safe wallet is also important for every investor as these days there has been an increase in the number of crypto to exchange hacking and the number of crypto wrench attacks has also increased.

[ColdLava40]

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.

If you put it that way, it makes it sounds unreal.

No one can force you to sell your Bitcoins, it is a decision you took from the start.

Situations will come where your investment would be the only way out, you don have any choice but to make use of them. Let us not be too carried away by the idea of holding your coins, you should hold them as an investment but when the time comes for something really life threatening you should not hesitate to sell them.

I dont know how many emergency funds we can have but emergency funds might not be enough for a long time.

[Son Of Blockchain (SOB)]

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.

You're spot on, afterall we only have one life and the least we can do is to do everything possible to keep living till we're old enough to finally die, so if selling off an investment or some portions of it would be enough to save ones life then it's not a bad choice. It would only be bad if the person had other means of generating money for the health issues but still went ahead to sell instead of using the available money asides the investment to solve the problem.
 Life threatening problems shouldn't even be a debate when selling off an investment is the only hope, it doesn’t matter whether it's Bitcoin, afterall it's someone that's alive that would be able to invest but who's dead is dead and gone so why shouldn't life be put first.

[Obari]

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.

Even as I be person wey believe and prefer long time investment, that one no mean say we go deny the fact say sometimes, life Dey happen to person and you go just end up Dey find yourself for situations wey pass you and have no other choice than to sell.

You know say, there are possibilities say even people wey Dey invest with discretion funds, still Dey see themselves for situations wey dem no Dey get choice but to touch their savings?

[Versatile_choice]

Even as I be person wey believe and prefer long time investment, that one no mean say we go deny the fact say sometimes, life Dey happen to person and you go just end up Dey find yourself for situations wey pass you and have no other choice than to sell.

You know say, there are possibilities say even people wey Dey invest with discretion funds, still Dey see themselves for situations wey dem no Dey get choice but to touch their savings?

That's in your own case, personally I don't see that situation that would make me think of selling my holdings because I have my emergency funds, backup funds available. As a long term investor you need to prepare yourself very well knowing fully well that there might be some impending emergencies, and then you start looking for a way to create emergency funds and backup funds. If an investor does not have backup funds then it means that the person does not know what he or she is doing, so anyone who is yet to build backup funds for their bitcoin investment should try as much as they could to start building it so that when emergency need arises you will have other alternative rather than selling your investment.

[yixichloro2xx]

A lot of people end up selling their coins not because they don't have an emergency fund set aside but people forget that there is a possibility that the emergency funds being set aside might not actually be enough to sort out certain needs that arises, this puts investors under a financial constraint that makes them have no other choice but to sell their Bitcoin, there are situations that pushes people to make such decisions and you cannot really blame them for it, things just happens that way. But it is advisable to always make contingency plans so you can keep your investment running.

The Bitcoin is yours, there's no need to start feeling guilty because you sold your holdings to solve a very big emergency that your emergency funds can't cover. This kind of scenarios often happens to investors, whereby some investors will want to try and source for money like loan, but where unable to get it, them selling your Bitcoin is the only solution they have. Guys with quality finances (high income) won't have to tap into their Bitcoin because they have enough funds in their emergency savings and reserve/backup funds. But I can't say the same for o low income earners, whose directionary income is relatively small, so these set of investors are liable to sell. The purpose of Bitcoin was to save your money to appreciate and when you need it you can access it . It's your money and effort, there's no bad thing spending it when you have nowhere else to turn to.

[Cryptoprincess101]

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.

Your explanation is correct, the problem is just that most people invest in bitcoin without making plans for backup funds and emergency funds. They never thought about what if an emergency need arises, how will they be able to sort it out without tampering with their bitcoin holdings. It will be a very wrong investment practice to invest all our discretionary income without keeping some funds for other purposes.

It mustn't be a life threatening situation that one can consider to sell his bitcoins if his other incomes cannot take care of such emergency. There are some minor medical conditions that ends up becoming life threatening. Besides, some sickness might come with complications so in such situation it is understandable to seek for health wellness firstly.

[Agbam]

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.

I know that As humans there are several situations beyond our control but we also have the ability to reduce the effects of such situations. That’s why there are a lot of encouragements as investors to use discretionary money for investing and ensure to create sufficient backups. All your money doesn’t also have to be in bitcoin.

It’s important to know that as an investor you’re not supposed to sell when you’re not ready because you might be unlucky and sell at a very huge loss.
Because bitcoin is a volatile asset, it should not be the first asset one intends to sell to offset an emergency situations. First has to be your emergency and backup funds then a non volatile asset in your possession before looking at selling part of your portfolio.

There’s nothing actually wrong with selling your bitcoin but how, when and why you’re selling it matters a lot.

[Mate2237]

There are measures that one has to put in place to avoid falling into such a situation and the first thing to do is to have a source of income before making an investment in Bitcoin, having an emergency fund is good but it won't be sustainable without a source of income in the long run. As an investor you should have channels or different means of income so you don't sell your Bitcoin unnecessarily.


Forced selling can end up becoming a financial loss and this affects your hodling or investment in the long run, like I explained initially it is sustainable to have another source of income, this is better than just having an emergency fund, you can set an emergency fund aside and at the end of the day it's not going to be enough for you to sort out whatever financial problems that you have, which might still lead to you selling your coins.

[Olatundespo]

Op After your thread, I have repeatedly remembered how important an investor's emergency fund is. I have discussed these issues before, it is just worth remembering. Since we are accumulation Bitcoin we need to give more importance to its holding as a future asset. How important it is to have an emergency fund is more important in your article.

Follow some important plans such as -

1. Buy Bitcoin with an amount that is not necessary for your family, that means this fund should be allocated from discretionary income.

2. It is better to use the DCA method to determine a long term investment strategy in Bitcoin and build an emergency fund, if it is possible to build this fund from the beginning and if you do not have extra funds available build an emergency fund gradually.

3. If the need is not met by the emergency fund you have, it is not a wrong decision to be forced to sell part of your Bitcoin holding. If you are in a loss at the time you need money try to raise funds from another source.

So you can solve the unexpected situations that you will face in your long-term Bitcoin investment plan without always relying on emergency funds. You can meet many small scale emergencies with cash funds. For large scale needs, it is also a good plan to try a combination of emergency funds and cash funds.