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

[Cgrexp]

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.

More important than how much money a person is investing is how much impact the money can have on their financial situation. Buying Bitcoin with money kept for other household expenses can never be a responsible decision. It can face significant price drops at any time. If you need money to meet an essential expense at that time, you may be forced to sell Bitcoin at a loss. It is not necessary for someone to invest their entire surplus income in Bitcoin just because they have an emergency fund. In addition to the emergency fund, the investment amount should also be determined by considering other future needs and personal financial goals. Having a backup fund is important when holding Bitcoin in the long term. Even if your financial situation is good at the time of investment, unexpected needs may arise in the future. If you have sufficient emergency funds in advance, it may be possible to meet the necessary expenses without selling the investment in such a situation. If you want to invest in Bitcoin for the long term, you should not only plan to buy regularly, but also create a financial foundation to maintain that investment.

[Xackie]

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.

Your idea makes sense, but in my own case I would first evaluate  how urgent and big the emergency I am facing. Since mu emergency  savings is not enough, I would try to borrow from friends and family since they won't add any unnecessary interest.  If I can't get from any of those options which is unlikely for me, I would then consider selling some Portion of my bitcoin and add it with the initial emergency savings.  I don't like anything related to banks, talkless of borrowing from them. What I fear the most about them is their high interest rate. Common 2k someone will borrow from Opay they will add unimaginable interest rate and continuously disturbing you with calls. If the issues get resolved, then I could continue to rack up Bitcoin and also try to build a strong emergency savings, so that I won't face that kind of scenario again.

[CryptopreneurBrainboss]

More important than how much money a person is investing is how much impact the money can have on their financial situation. Buying Bitcoin with money kept for other household expenses can never be a responsible decision. It can face significant price drops at any time. If you need money to meet an essential expense at that time, you may be forced to sell Bitcoin at

Fuuny how this advice can be repeated numerous times yet it won't have any impact on the minds of those who have already made up their mind to put their last card into Bitcoin and from that same last card, they also want to buy food, pay bills and gamble too (yeah very important for the average Nigerian). 99% of investors are using money they can't tolerate losing and that's just the honest truth. We don't actually have many those I'll call investors in this country, what we have are just those looking to make the best profit possible and thats why the market always shows them shege. The average Nigerian losses all composure when the red days come as they didn't plan for it and that has always been our mistakes as Nigerians, never having a plan but just going as the spirits lead.

[Versatile_choice]

More important than how much money a person is investing is how much impact the money can have on their financial situation. Buying Bitcoin with money kept for other household expenses can never be a responsible decision. It can face significant price drops at any time. If you need money to meet an essential expense at that time, you may be forced to sell Bitcoin at

Buying bitcoin with Money that is kept for other household expenses is totally wrong infact, there's no reason a person would give that would make use say otherwise. Even though we consider buying bitcoin with money that is kept for other expenses what happens when those expenses is matured? because there are some expenses we may feel that it is not necessary at the moment but sooner or later it will get matured, imagine if a person has invested the money they are supposed to use in  figuring out the expenses what are they going to do when the need calls? So this are the reasons why we don't even need to invest with money meant for our household expenses in bitcoin.

[Sonia_123]

If you buy bitcoin and you sell am within six months because of your family expenses that means you nor really plan for the investment na, e don make you be bitcoin trader and not an investor because an investor go see sey him go get financial challenges along the line of him investment so him go plan well, get reserve and emergency funds to back-up him investment so that wen dis kind of problems come that the emergency fund him go take solve dem not to temper him investment, if not you go just end up being a gambler because for six months to come sell your investment profit Neva enter am and you know sey Bitcoin nor be stable coin, so e go even beta sey u take that money do pure water business you go get more money dan put am for bitcoin investment and end up losing your money because if na the period wey Bitcoin dey dip you buy na big problem, plan well before investing in btcoin to avoid heartbreak.

[Tongley]

If you buy bitcoin and you sell am within six months because of your family expenses that means you nor really plan for the investment na, e don make you be bitcoin trader and not an investor because an investor go see sey him go get financial challenges along the line of him investment so him go plan well, get reserve and emergency funds to back-up him investment so that wen dis kind of problems come that the emergency fund him go take solve dem not to temper him investment, if not you go just end up being a gambler because for six months to come sell your investment profit Neva enter am and you know sey Bitcoin nor be stable coin, so e go even beta sey u take that money do pure water business you go get more money dan put am for bitcoin investment and end up losing your money because if na the period wey Bitcoin dey dip you buy na big problem, plan well before investing in btcoin to avoid heartbreak.

Yes you are right, it is very important to have a proper plan before starting investment. But yes if ever after making proper plan you sell your holdings during a major financial crisis then that situation is completely different.

Proper planning helps a person to hold his investment for a long time. For example if a person invests the required amount of money then he will definitely not be able to hold it for a long time because that amount of money may be required before the end of the period and that person may have to sell his holdings prematurely.

If a person invests through discretionary income but if he has not created an emergency fund to deal with the financial crisis then he will definitely be forced to sell his holdings during the financial crisis

[Akaenyi]

As a Bitcoin investor you should buy your Bitcoin from your discretionary funds, same way you should also make provisions for emergency funds from your discretionary funds so that you will not be pressured to sell your Bitcoin prematurely to solve your emergency. But if an emergency happens and the emergency funds that you have on hand is not enough to cover the bill you have to source for funds to take care of your emergency. Surely you can sell your Bitcoin to pay for the emergency because left unattended to the consequences will deverstate you so if you cannot raise money from anywhere to pay the bill of your emergency then you don't have a better option than to sell your Bitcoin. You can make money and replace your sold Bitcoin but you cannot recall a dead person with money.

[Bryan jessy]

Bitcoin investment is something a person needs to plan and prepare very well financially, if a person has a paying job then engaging in another personal business is advisable, there is no way someone will have this two means of income and be stranded to the extent that the only option left is to sell off his Bitcoin because what if that period the price is low that means he will be selling at loss, and aside all this a discretionary funds is necessary for emergency situations unless the situation is so overwhelming and requires a lot of funds to handle that is when tempering the investment happens, else touching ones investment should be the last thing an investor should do that is if he is in a critical position.

[SmartCharpa]

School fees are not part of an emergency fund. You already know that you have school fees to pay, whether for yourself or your children, and you still invest the money in Bitcoin. You are not investing, you are gambling mate. Unless you no longer want your children to go to school, we should avoid such things.

Bitcoin price can drop any the time, that is a big risk with the money you have already plans for. School fees, house rent light bills are normal expenses of our life. These are the things you should make sure are handled before taking any risks.

Moreover, we cannot tell about health conditions, people can get sick unexpected, if you know your health condition, that’s another reason to have a backup plan, if any of these happen you can use the money available to solve the problem.

[7juju]

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.

I don’t like this idea. First as a bitcoin investor, you are supposed to have an emergency funds that will serve as a cover for your bitcoin. Not just the emergency funds alone, you should also do well to have reserved funds available. If an emergency happens and the expenses is bigger than the amount in your emergency funds account, you then take from your reserved funds and add it up. If the emergency is so big that both money in your emergency funds and reserved funds account are not able to take care of it, you sell from your bitcoin to complete the money.

Borrowing money and using bitcoin as collateral is not wise. If you can’t pay up the loan, your creditor will take the bitcoin. In both cases you are going to end up losing your bitcoin. You will pay interest on the loan. But if you sell, you will buy back when your money come. That interest you would have paid can also be used to buy back more bitcoins.

[osasshem]

As a normal paid worker, you don't need someone to tell you that you'll need to pay your wards school fees, because this is something that comes at its time, therefore you should be ready for it before it comes and its not an emergency, it is a regular bill that has season.

To everyone, emergency related to health is something that can hit at anytime, and it doesn't care if you are ready or not, that is why before taking the step of making investment, it should be made sure that you have something generating regular incomes, then funds for emergency as the case may be.

This emergency funds might not be enough to handle the situation, but it will play a part of not affecting your investment that much, that's the essence. Therefore, as an investor, you should have what it takes to protect your investment before making investment.

[Patrol69]

More important than how much money a person is investing is how much impact the money can have on their financial situation. Buying Bitcoin with money kept for other household expenses can never be a responsible decision. It can face significant price drops at any time. If you need money to meet an essential expense at that time, you may be forced to sell Bitcoin at

Buying bitcoin with Money that is kept for other household expenses is totally wrong infact, there's no reason a person would give that would make use say otherwise. Even though we consider buying bitcoin with money that is kept for other expenses what happens when those expenses is matured? because there are some expenses we may feel that it is not necessary at the moment but sooner or later it will get matured, imagine if a person has invested the money they are supposed to use in  figuring out the expenses what are they going to do when the need calls? So this are the reasons why we don't even need to invest with money meant for our household expenses in bitcoin.

You should not use any money that you may need for investment, but you should always use the kind of money that is left after meeting all your needs, that is, the money that we know as discretionary income.

After investing, many people may think of doing something like this: they will spend less on their needs and invest the saved money in Bitcoin, but this plan cannot work in the long run because if you spend $100 to run your household, you will have to keep $120 there so that no need is left unfulfilled. But if you keep $80 for household expenses instead of $100, then an investor will have to face many problems later. When such problems arise while continuing the investment, it will not be possible to continue this investment, and besides, this investment will feel pressure, and with such pressure, it is not possible to continue the investment for a long time.

[Anayochukwu]

I don't consider school fees or family responsibility as an emergency situation and also anyone that wants to invest in Bitcoin should also know that there's a need to set aside emergency funds for situations that might get out of hand, even when tutoring about Bitcoin investments I never for a second skip that part because that's one way to invest in Bitcoin and succeed in it. Every long term investment needs a backup to enable it stay and remain an investment longer as you have planned for it and if by any chance I don't have an emergency funds to sort myself out I would rather borrow money than pull out my investment.

[Cossyblack]

Emergencies are unexpected occurrences, anything you don't expect that happens is an emergency. School fees is a bill that you already know that you must pay before or towards the end of a semester, it is something you are aware of,  so I can't categorize it as an emergency.

Before anyone invest in bitcoin, they should have a source of income because that is where they will be getting their discretionary income from and invest in bitcoin. If you don't a source of income but you have a discretionary fund, you can invest your discretionary fund while you search for a job or learn a professional skill to earn an income from. You can't go into bitcoin investment when you haven't secured a job to sort out your basic needs and figure out some discretionary income to invest because you'll need a source of discretionary of income.

[Fiasem20]

‎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?

Emergency fund dey important well well,e go make you continue your bitcoin investment in a way wey you no go put hand inside when your investment neva mature.If you dey hold bitcoin for the long term and unexpected emergencies pop up Wetin con be the essence of the emergency funds shey na to use am clear emergency bills but in case where the emergency bill big pass the emergency fund then you fit withdraw small portion of your bitcoin investment take solve the emergency case especially when the case na health complications,e better make you dey alive than to die leave your bitcoin all in the name say you dey hold for the long term.Most people dey even use their bitcoin as collateral,na that one I no encourage at all.