What Happens to a Nigerian's Bitcoin Plan When an Emergency Comes

[Cryptomultiplier]

A Bitcoin investor should plan for the future of their intended goals and not because they only intend to use it as a hedge against inflation even if that be the case. Even with emergency funds on the line, alternatives should be separate from this plan because it wasn't intended for in the first place, but I wouldn't advise using Bitcoin to collect loans that's why it's better to use it to sort oneself if that's the only means of escape from ones predicament.

[Berry2d]

A Bitcoin investor should plan for the future of their intended goals and not because they only intend to use it as a hedge against inflation even if that be the case. Even with emergency funds on the line, alternatives should be separate from this plan because it wasn't intended for in the first place, but I wouldn't advise using Bitcoin to collect loans that's why it's better to use it to sort oneself if that's the only means of escape from ones predicament.

Investments with plans for future use is sure and certain but difficult to be achieved in Nigeria because Nigeria offers what it like to citizens without considering our own investment plans. Many investors today had a well structured plans on ground but still goes off that path not because the wish to but Nigeria serve them offers above their financial capacity.
The emergence of uncontrollable emergency situations makes some investors go against their plans and not because there investment is done to beat inflation.
Even before now we all are aware that inflation in uncontrollable in Nigeria and investing with the aim of using it against inflation can never be possible to achieve.

[Proty]

Investing in bitcoin using money that is not your discretionary income can force you to sell at loss to meet your essential needs. It is important you invest in bitcoin using money that is not meant for your expenses like school fees, hospital bills and money for your basic needs. Even when  you have an emergency funds, it is still necessary to invest with your discretionary income .To be able to hold for a long term, it is important to have a backup funds so that whenever an emergency occurs, you can always  address the situation using your emergency funds, but this doesn't mean that you should invest using money that isn't discretionary income.

[Exitoral]

Sometimes, it is not only by accumalating. When things are not as easy as it uses to be before, there is no crime in in pausing your DCA and attending to financial matters in your home before you eventually deep your hands in your Bitcoin savings. Pause the the accumulation of Bitcoin and attend to the problem. After it has been done, you come back to your Bitcoin and continue your DCA.

People see it as a crime to stop investing in Bitcoin. There is no crime in doing so. The only thing I will call a crime is when you ignore th financial loophole in your life and still kept on saving. Then when you can't take it any longer, you go into Bitcoin and withdraw. That's not how it is suppose to be.

[Jubilee58]

lot of person have the mentality of buying Bitcoin with the aim of holding or keeping it for a long time they believe in it in the future and want to build something that will benefit them later but however one thing we sometimes forget is that not all things go according to it's plan and emergency can occur at any time and it may affect the way we manage our Bitcoin. in Nigeria unprepared and unexpected expenses such as hospitals bills school fees family responsibilities or business challenges can tend to increase the pressure on someone finance somebody who holds the plan to hold Bitcoin for five years may suddenly be in need of money just after six months.
~

Is school fees an unexpected expenses? I don’t think so.

That’s by the way, moving on from that.. the importance of an emergency fund can’t be over emphasized because it helps in situations that could warrant serious consideration like medical expenses that comes unexpectedly.

Sometimes though the emergency fund alone can’t cover the emergency expenses, you’ll still need to touch from your investments to cover it. But even as that, an emergency fund might reduce the amount you’d touch from the investment in such scenarios.

For someone to manage Bitcoin investing very well, emergency fund is very important to own a sustainable long term investment. We cannot avoid emergency occurrence, and therefore we should make separate savings for it. However, if their is an emergency that your emergency fund cannot take care of, tempering your investment to handle the emergency situation is not wrong, however if your investment is tempered as a result of emergency fund ensure your investment or asset is replaced when you recover financially.
It is common to touch one's investment more especially when you are facing immediate financial challenge, but this is not surpose to change your investment goal, you really have to restore your asset to achieve your financial goals and objectives on the long run.

[Zigabel]

‎In my opinion i think financial discipline means knowing when to invest when to save and when to   consider urgent need first There is no benefit in holding Bitcoin for the future while ignoring serious problems that need urgent attention today.
‎I would also like to know and I hear from other members especially those staying in Nigeria. If you are holding Bitcoin for the long term and unexpected emergencies pop up what would you do? What would you do ? Will you save or consider another option? Why will you do what you did?

When we talk about investment this thing wey you just talk here na the truth,  this financial discipline and intelligence na wetin some pipo dey think say na just by to invest money for somewhere naim mean say you dey financially discipline or intelligent,  dem forget say e actually dey foolish say your basic live survival needs dey suffer extremely and you dey form say you dey invest,  forgetting say na when person dey in dia right sense dem dey fit invest well and na who dey sound and healthy in their best minds dey fit later dey to enjoy their investment at the end of the day.

Investment supposed supposed be wetin you go do when you don take care of other basic needs dem fes and you don see am say you get some money wey remain,  so Instead to waste am, na to Invest am, dat time, na good financial decision we go say you take be that.

[Emeraldo]

Investing in bitcoin using money that is not your discretionary income can force you to sell at loss to meet your essential needs. It is important you invest in bitcoin using money that is not meant for your expenses like school fees, hospital bills and money for your basic needs. Even when  you have an emergency funds, it is still necessary to invest with your discretionary income .To be able to hold for a long term, it is important to have a backup funds so that whenever an emergency occurs, you can always  address the situation using your emergency funds, but this doesn't mean that you should invest using money that isn't discretionary income.

It will be sent as foolishness for someone that want to invest in Bitcoin to use funds that are meant for hospital bill, feeding, transportation and other emergency billsfor Bitcoin investment. Bitcoin should have it separate investment fund and it will be ususual to use money that is meant to important thing to Bitcoin which can name the investor to later sold the Bitcoin that was bought because of quick emergency. Anyone investing in Bitcoin need to be wise so that they don't make foolish mistakes because they want to invest in Bitcoin.

[Patrol69]

I think all investors have a backup plan. When we invest in a long-term plan, we all plan in such a way that while continuing this investment, we may have a financial need at any time or we may have to face unexpected expenses, but for this we prepare in advance.
For example, in the case of long-term investments, investors form an emergency fund in advance so that they do not have to sell their investments suddenly. Basically, the money in this emergency fund is used only when the investor faces unexpected expenses and when the investor has no other way. So I think in this way an investor protects his investment from selling during such unexpected expenses.

[OsaiEmma]

lot of person have the mentality of buying Bitcoin with the aim of holding or keeping it for a long time they believe in it in the future and want to build something that will benefit them later but however one thing we sometimes forget is that not all things go according to it's plan and emergency can occur at any time and it may affect the way we manage our Bitcoin. in Nigeria unprepared and unexpected expenses such as hospitals bills school fees family responsibilities or business challenges can tend to increase the pressure on someone finance somebody who holds the plan to hold Bitcoin for five years may suddenly be in need of money just after six months.
‎The real challenge is not only buying Bitcoin but also having a well laid plan for unexpected.
‎situations imagine somebody who uses parts of his/he income to purchase Bitcoin every month they have a long good and cannot want to sell their Bitcoin anytime soon suddenly a family member or relatives need urgent medical Care and the person does not have enough money on ground it may force them to sell some of their Bitcoin even if the price of the market is low than what they paid.

‎This is one reason why emergency savings is important before installing money into Bitcoin people should consider and remember their easy needs and keep some money available for unexpected expenses this can reduce the pressure to sell their Bitcoin at the wrong time.
‎Another mistake is borrowing money just to avoid the sale of your Bitcoin although holding Bitcoin for the long term maybe someone is taking on debit without a reliable repayment be up and plan can be a bigger financial problem.
‎
‎In my opinion i think financial discipline means knowing when to invest when to save and when to   consider urgent need first There is no benefit in holding Bitcoin for the future while ignoring serious problems that need urgent attention today.
‎I would also like to know and I hear from other members especially those staying in Nigeria. If you are holding Bitcoin for the long term and unexpected emergencies pop up what would you do? What would you do ? Will you save or consider another option? Why will you do what you did?

I still stand on the notion that it is totally unwise to invest when you don't have a good source of income, just as CryptopreneurBrainboss said, problem no dey finish. That's why you need to have a good source of income first before embarking in Bitcoin investment that take a lot of time to mature.

A good source of income will help you cover your emergency funds and as well as your investment capital. If one insist on investing, meanwhile, they have a meager emergency funds, their investment will at some point go into emergency and thus, sometimes force you to sell at a loss. I for once cannot embark on an investment, especially one that requires DCA, and a long period before maturity, when I don't have a good source of income—even though it's called an investment, but at that point it is an expenses.

[VivaMan]

Definitely emergency can come at anytime in life, but when you are fully prepared for it , it will not affect you that much, rather it will be an experience to you in future, in as much as it won't take the life of anyone involved.
Now this is how it works, not just as a Nigerian, but as an average person that earns into monthly.
Let's try and adopt to this development I believe it will help alot of investors.
The money you received your salary, share the money Into 4 parts how?
Example: If your salary is ₦300,000
‎This is how to plan
‎Expenses
‎₦120,000
‎Emergency savings
‎₦100,000
‎Bitcoin investment
‎₦40,00
‎Personal spending
‎₦30,000
‎Airtime/Data 10,000
‎Total 300,000
‎
‎I believe with this, after planning very well it will help you alot not to touch your investment money. Another thing also is to stay discipline and consistent, don't not only depend on one source of income, try to create and have little support no matter how small it is.
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[Sulegzy39]

In my real estate business, for instance, I reinvested the first turnover I received from rent into purchasing more land, and on the second turnover, I began developing the new site. This has given me a hedge, which is possible because I have other sources that take care of my emergency and other basic bills. The capital investment is never safe if the investor has not made allocations for emergency funds, which are very different from basic bills that should also be kept away from your investment or its profits.

The main point of that illustration is to demonstrate how having emergency funds and other sources helps your investment portfolio grow faster than it should if you start using your investment income for non-returning emergency expenses.

[PremiumcryptoHub]

Without having any extra cash set aside, any sudden bill can forces you to sell your Bitcoin early.
Market don’t care about your personal life or problems. When it turns out that emergency happens when price turns out to be low, you see that you lose money by selling at the wrong time.
A separate cash savings is not a waste, This gives a room to protect your Bitcoin so you don’t have to touch in the name of settling any bills but still when u are ready.

Any sudden bill can force you to sell your bitcoins without having an emergency fund for investing, so it goes without saying that a Nigerian investor should plan to set aside extra cash in advance in case of an emergency. Indeed it is certainly conceivable all advisors advise to acquire basic knowledge of bitcoin investment at the initial stage and start bitcoin investment with discretionary income but that does not mean that one should not consider emergency fund or backup fund, this is very important for every Nigerian investor and this fund can be referred as protection charm. Overall we believe that every investor should be prepared to invest in Bitcoin with proper planning, a long-term mindset, and the ability to generate discretionary income.

[Orpichukwu]

A Bitcoin investor should plan for the future of their intended goals and not because they only intend to use it as a hedge against inflation even if that be the case. Even with emergency funds on the line, alternatives should be separate from this plan because it wasn't intended for in the first place, but I wouldn't advise using Bitcoin to collect loans that's why it's better to use it to sort oneself if that's the only means of escape from ones predicament.

I don’t know who gave some people that idea that it’s better to use their bitcoin to take a loan and solve their problem than to sell their bitcoin, because in most cases that’s actually a trap that's not easy to pull out from, the interest attached to it is more than profit that could possibly be made during that same duration.

[Creeper0]

There is a flaw in your plan. First, you need to understand what are unexpected expenses and what are expected expenses. You also need to be aware of which of the unexpected expenses are urgent. Are school fees, family responsibilities and business challenges unexpected? Even if a business challenge is somewhat unexpected, there can be doubts about whether it is urgent or not. Because business challenges are expected, which is why a good businessman is always prepared for these challenges.

And why are you planning to invest with a part of your income? You should plan to invest with some part of your discretionary fund. Although discretionary funds come from your source of income, there is a big difference between a part of your income and a part of your discretionary fund. You should invest with a part of your discretionary fund to avoid emergencies and another part to prepare a backup fund to fight against emergencies.

If your source of income is not able to meet these conditions, then you should probably not invest. Your investment capacity as a common person, not as a Nigerian, is questionable. So to be successful in long-term investing, you need to be prepared for every moment and have a backup plan.

[MyWarLord]

Everything you said is true, actually school fees is not an emergency. School fees are paid every term so definitely you know is a must to pay school fees so it shouldn’t stop you from buying bitcoin to hold for the long term. I know emergency come unexpected, but if you plan well emergency won’t stop you from buying bitcoin and saving for long time for future use.

You should know when to buy bitcoin and also have savings outside your bitcoin investment because it will help you when emergency occurs. Your family responsibilities should be settled first, like their basic needs and expenses, so that even if emergency occur  let it not be about food and up keeps. At least your family needs should be settled before buying bitcoin to hold for the long term, and also learn financial discipline.

[MisFoxie]

Since I am holding Bitcoin for the long term and I don't have any extra funds in that situation I will definitely take a loan by keeping my Bitcoin as collateral on a trusted platform.

Normally If you take a loan using Bitcoin as collateral the interest rate is much lower than that of a bank. Of course you have to keep in mind that if the price of Bitcoin keeps falling there is a chance of getting liquidated. In that situation you may have to add more Bitcoin or repay the loan.

[Itz-prisigold]

I don’t know who gave some people that idea that it’s better to use their bitcoin to take a loan and solve their problem than to sell their bitcoin, because in most cases that’s actually a trap that's not easy to pull out from, the interest attached to it is more than profit that could possibly be made during that same duration.

I think the issue is that there are people who think that if they sell their Bitcoins, they have  automatically failed, even though they genuinely need the money. Personally, I think selling a portion of your holdings at times is more beneficial than having to take on a debt that will be stuck with you for months. Bitcoin is actually designed to meet your financial problems, and not to help you rack up debt simply because you want to continue holding bitcoin.

[devouring-DARKNESS]

I don’t know who gave some people that idea that it’s better to use their bitcoin to take a loan and solve their problem than to sell their bitcoin, because in most cases that’s actually a trap that's not easy to pull out from, the interest attached to it is more than profit that could possibly be made during that same duration.

I think the issue is that there are people who think that if they sell their Bitcoins, they have  automatically failed, even though they genuinely need the money. Personally, I think selling a portion of your holdings at times is more beneficial than having to take on a debt that will be stuck with you for months. Bitcoin is actually designed to meet your financial problems, and not to help you rack up debt simply because you want to continue holding bitcoin.

That will depend entirely on the terms of the loan and your chances of actually being able to pay it off. After all there is no logic to taking a loan if you can't pay it off and even with a collateral no self respecting firm will be willing to give out loans to people they dont believe can pay the loan back so if you will be able to generate enough income in the foreseeable future to be able to pay for a loan then it's can be the better option to selling your bitcoin but if you can't st all pay for the loan then sell your asset, you can always buy again once things have settled down.