Topic: Bitcoin reserved funds are not meant for fun spending (Read 375 times)

Not being meant for fun spending is hardly the case when you don’t have a concrete view as to why you’ve taken up certain investments. If you see Bitcoin for an investment and regard it to not be just a currency but an asset of value which is sure to appreciate over time, you would be mindful of how you spend those precious coins. At the very least, you would be more stirred towards investing more than spending because, this is an asset and with the volatile nature of Bitcoin, your sure to profit from long term hodling which by some measure, guides against spending.

I don't really get it because as we know in our daily life and that of our investment and savings, we should know that during our salaries it could be what we earned per week, Bi-week or monthly, when it comes we should be able to split in a way that it would be favorable for you not to affect and contradict your investment and savings. For instance, there is need for keeping emergency fund, reserved fund and that of charity after your investment because when you have all this carved out from your salaries i don't see any reason why you should go temper with you investment anymore.
I know there are people who don't make plans for all these i made mentioned that is why there investment are always being affected, because they would always be at the pressing time where they don't mind touching their investment and with this they can't make a successful investment.

If reserve fund is fully kept i dont think any investor would be wiling to tap into their investment when needs for those funds arises. This is one thing that is important in all type of investment aside bitcoin investment. Emergency funds and reserve funds are similar in some kind  of way although there are things that differentiate both.

Before ever starting up or making your mind up on having a Bitcoin investment, there are some strict things you ought to do and one of these things is knowing the importance of having a reserve fund in your investment journey because this is what will prevent you from diving into some unnecessary tempering of your coins although many people still don't know and carry out this strategy.

Yeah, the main reasons for keeping reserve funds is because in time of minor needs of cash you will take from it and settle anything that needs money to be settled. The purpose of investing is not to use it ASAP, it's a thing that ment for future purpose. However, misconceptions made few people to not get quality knowledge of investment, no matter what one knows about Bitcoin investment, if he doesn't have reserve funds he might terminate his investment in the near future because he's investment is been terminated by himself. Also to meet up on investment, an investor need to have a good source of income, a kind of job or business that provides good income, some reasons why some investors terminates their investments is because their source of income is no longer providing good profits as aways. It's still good for an investor to have more than one source of income.

A significant feature of investing in Bitcoin is the potential for long-term growth. Investing in Bitcoin involves holding it for an extended period of time by adopting a specific strategy through the long-term holding process. As you may have noticed, Bitcoin portfolios offer diversification. While its performance may not be tied to the traditional assets of stocks and bonds, it makes investment strategy diversification managing overall risk and creating a value component. Bitcoin investment is undoubtedly a good process but it will be good for the individual future, but not the exception. If we cut that investment due to urgent need, then it is against reluctance.

no matter what happened never temper with your reserved bitcoin, and if you're not a daily trader, don't be opening your wallet, just ignore it like they never exit. Because if you keep visiting your wallet you be tempted to withdraw if the price is dropping . That's why is adviceable to use your spare cash, not cash you need in two months time to invest in bitcoin. Bitcoin holding has saved many people, and make many millionaires, so if you want to enjoy bitcoin then you have to hold for long.

Whatever the type of funds be it reserve, emergency or float funds, the aspect of all these is so that over investment are secure and safe from selling and re-buying because if you are always tempering with your investment their is a high tendency that you end up scattering the whole investment and spending all the money on things that you didn't plan for and that's why it's paramount to have scheduled all these spare funds to atleast have a good Bitcoin holdings.

Wetin the OP dey try talk about nah money wey we keep aside for our bitcoin investment make we no spend am for nothing. E no mean say investor no fit enjoy or catch cruise but differentiate de money dem,  make ee be say the one for flexing dey go to that purpose. But de reserved money, wey dey set aside for bitcoin accumulation make we no use am for other things like fun spending.  Reserved funds dey important well  well, nah booster to our investments,  ee dey help us take advantage of the market when opportunity like dip come, we fit buy plenty bitcoin from our Reserved funds during that time.

Wetin Op forget to add,  nah to differentiate emergency and reserved funds because some people fit think say the both na desame but emergency funds and reserved funds no be desame. Emergency funds na investment backup, so that incase things wey we no expect come up we no go sell our bitcoin but spend or solve the issue from emergency funds. While Reserved funds na money we keep aside for our investment to dey buy bitcoin continuously and if DIP opportunity come u fit buy from reserved funds .

As a Bitcoin investor, it is very important to always have reserve funds in case any emergency comes up in the future so that you will not temper with your Bitcoin investment before someone can solve the problem that came up. Some people find it hard to be successful in their Bitcoin investments all due to this issue of not having reserve funds that will always back up their Bitcoin investments whenever any problem arises.

Sometimes, there are people who always have the mindset of holding their Bitcoin for a long time so they can make a good profit, but along the way, they start selling and later end up selling all. Many always sell their Bitcoin at the wrong time, especially when the Bitcoin price is down. So, for any Bitcoin investor, having an emergency fund is always necessary to avoid selling your Bitcoin investment later.

If you Dey invest for bitcoin and you no get emergency funds, then anytime wey problem happen, and you need money, na that bitcoin wey you buy, na him you go sell use the money solve the problem. But it’s just better we divide our money if we want to invest, make one Dey our invest wallet, make we leave the other one for either bank or make we leave am for stable coin for wallet wey we go fit easy convert to naira anytime wey we want am.

Most people hardly have reserve funds, most of them always use everything which they have to invest which is not really making sense, I no talk say make we no invest, but make we know put all money for crypto, we suppose get some money outside crypto.

Everything can be done when there is a plan. Although I understand what you are saying, the last thing to mention here that will make you understand it better is a plan. As an investor who is looking up to other investors and wants to invest for a long period of time, you really need to plan well before going to a bitcoin investment, as it will require you to be patient and not touch your funds unless you are in trouble and there is no other way to get another money to continue taking care of you at first until I get married.

Emergency funds has to do with your personal money kept aside for safety purpose of your financial use when the need arises, that is sudden expenses and the amount kept aside depends on the kind of life you live, your monthly income and expenses you make for the month.
In investing for you to accumulate and hodl ing more for a long-term on Bitcoin either by lump sum or DCA aside from your initial budget due to change in price of Bitcoin or otherwise, it has to do with emergency fund . In other to achieve this, you have to be focus and concentrate. Emergency fund is to solve immediate and urgent pressing need, just like sudden I'll health or accident.
While reserve fund are funds kept for things you need and things you don't need that you can spend whenever you want it and on anything just like the fun and enjoyment Op mentioned .

Reserve funds serve for all purpose and act as a safety net for unanticipated circumstances, when you are building your Bitcoin investment is proper you have a reserve funds. However to correct something reserve funds don't have a especially place or circumstance to use it for any unanticipated circumstances that comes up you can you your reserve funds to handle it, it could be for fun for example you are to attend a birthday party and you need money so you can use it to buy drinks and other things you can dip hands into your reserve funds for that, reverse funds is different from emergency funds emergency funds are only for emergencies purposes so let no the difference and it's always advised to have a strong emergency, reserves and float funds in other to make your Bitcoin accumulation journey a successful one because without all this funds in place you will be tempted to dip hands into your Bitcoin investment.

Apparently, I thought you meant having a Bitcoin reserve fund, just like having a reserved Bitcoin fund whenever you use your other Bitcoin accumulated portfolio to take risks like buying and selling, which may be considered trading. However, the reserve fund you are referring to is a general fund and the topic should be Reserve funds are not meant for spending excluding the Bitcoin there.

The reserve fund is extremely necessary and not just something that one should take less seriously. This is because when accumulating Bitcoin there are times when we would want to buy more than we have made up in our minds to buy. We get to tap into the reserve funds and buy then later fill it. Just like you have said reserve fund is not something that one can be scared of touching because it is not an emergency fund that is needed for emergency purposes.

Bitcoin reserved funds should be treated with caution and not used for casual spending. It's crucial to handle these funds with care and be mindful of their value and purpose. Indeed, having reserved funds in investments can offer a layer of stability, by setting aside funds for specific purposes, you create a safety nets and can give an investor advantage to capitalise on opportunities available. It allows you to have a shield to rely on, ensuring that your investment portfolio remains resilient and well managed. The Critical need to manage reserved funds effectively to maximize their impact on our investments by employing strategic planning and careful consideration, we can ensure that these funds serve as a catalyst for our investment growth. Implementing a disciplined approach to spending and allocating reserved funds can help enhance our overall investment strategy and provide a solid foundation for financial success in the long term.

I think the two funds are very important because reserve funds is set aside for installmental payment of goods or services. Like you want to pay something and take it and you don't have the full amount so you have to discuss with owner and pay part by part and when you have completed it then the appliances or goods would automatically becomes yours. And that is reserved fund because the money is reserved foe that purpose so as a investor investor of bitcoin you can use the reserve method to invest in bitcoin with the DCA method and why because the money is reserved foe the purpose to buy bitcoin at a specific time so the reserve funds is the best to invest in bitcoin with DCA.
Then emergency funds are to use for things that you no dey expect so you keep for unexpected expenses and bitcoin investors use emergency funds because they don't know when the dip would come so they have to keep the emergency funds so dat when the dip comes then they use it to buy. So the emergency funds can also be use as di DCA but the best na di reserve funds.

However, reserve funds is not for partying, it's a funds that helps us during the times of needs. Without a reserve funds an investor will always terminate his or her investment because he don't have any backup money that will be used during the times of emergencies. As a good investor of Bitcoin, you should know that you must have a source of income that brings money to you daily or monthly. A source of income is also a backup for any investors because it's the thing that brings money for you to invest and for reserve purposes, with a source of income one will not have the money to invest on Bitcoin or save. Reserve funds isn't a thing one should use for fun because it's very important in future.

as necessary as this is, most of us don't have the luxury of setting all this in place while we accumulate our Bitcoin. Most of these emergency funds and reserve funds are ideal strategies that if followed would give you the best accumilation journey but we know that in the practical context, most persons don't have any reserve funds that's going to serve it function when emergency sets in or use it to buy some extra Bitcoin when there is a correction in the Bitcoin market.

The urge to use our savings for luxury would always come and as a typical Nigerian that has a lot of self entitled people around us, it's easy to spend it on people who will keep coming for help. Those who live a competitive lifestyle with their mates are the most likely to misuse their reserve funds to prove to people around them that they aren't doing badly in their finances.

Of course, person suppose they enjoy but e get wan kind money wey we supposed no think to use for fun or enjoyment, enjoyment no dey finish oh, you fit still enjoy today make tomorrow reach you come see wan wey  dey fun pass the other you fit still come like to follow put body but realising say you don already spend the money you keep for fun then wetin go come be na for the person to go take from reserved funds wey be say na the main source wey him supposed use they back up in progress for the investment waka.


Both no be same thing, reserved and emergency dey closely alike but no be the same thing, once we talk about reserved funds this na the one wey be say e dey for well known purpose, normally we know say at the end of every month we they stalk our store room with food stuffs and wetin we need but aside that e get one particular money we dey hold for hand or bank as back up, that money follow for wetin we dey call reserved funds but emergency funds na separate money wey don dey aside incase of incasity, e fit no happen this month oh but another month something fit warrant wey go require that money, I believe say atleast I don differentiate am.

Literally, a good investor that doesn't want any form of distraction during their accumulating stages makes plans for reserved funds and emergency funds because that is what will make them not to touch the money they have accumulated for their investments. There is a thread where discussions about having reserved and emergency funds is necessary and you can find the thread here Buy Bitcoin, and HODL! so if you want more understanding you can join the discussions going on there.

You will have a broad knowledge about investment in that thread by JayJuanGee, he's well knowledgeable and can guide you on how to go about in your investment in Bitcoin particularly.

Reserved and emergency to me are the same thing since the money is kept for an unforeseen circumstance that may occur in the future. Whether it’s called emergency funds or it’s called reserved funds, they’re use to tackle the same problem. It is necessary as an investor of bitcoin to have enough reserved funds because bitcoin is a long time investment and it is not something that can easily be cashed out from without waiting. In those periods of waiting, you’ll definitely witness important cases that needs money to be resolved, if they happen like that, you can run back to your investment to take the money back from there that you’ve already invested. It’ll make your plan to be destabilized and you won’t achieve your target of accumulation at the time you want to stop buying and start holding.

As an intending or existing investor in Bitcoin, it is very important to have a reserve fund, op you made a very good point, some investors feel that once they invest, there is nothing else to bother about anymore but the truth remains that needs must arise as days go by, this the reason I always stress the need for us to be prepared before investing, reserve funds simply means don't give your all, don't invest everything you have, make sure you have what you can fallback to, investment is nice but it doesn't mean that you should be hungry because you have an investment somewhere that's a no no for me, an investor should be able to lay hands somewhere if anything happens in the process not thinking of how to sell off or tamper some of the existing asset to solve the  problem.

Every investment has duration for its profit to be tapped, once an investor stops half way before time, such investor may  be tagged premature seller or shorterm investor, as a matter of urgency it will be nice if Bitcoin investors take this particular investment plan serious to enable them achieve the longterm goal which is the major reason for bitcoin investment.

We no suppose dey invest everything wey dey our pocket because e no make sense, we suppose dey get reserved wey we go dey use hold body make food no go finish for house. If you no get some reverse you no go fit hodl self because how you go get money for your wallet yet you no fit chop and you think say you go get peace of mind dey hodl Bitcoin. There are only one way to this, you have to invest only wetin you fit afford say you fit lose am (that's you need get chopping money as you dey invest inside Bitcoin). The reserve money needs dey before you invest self and no be say after you dun invest finish before you start to dey find reverse.


If we dey plan ourselves well we no go dey get all this problem. Spending money supposed dey budgeted for already, same as saving money and other basic things wey we go need like if you get car and you wan put down maintenance money. Emergency money supposed be for emergency and not use for something different. The only time wey I go fit say money meant for something else can be touched na if na life and death situation wey be say you go replace the money immediately e dey available (after you dun use am).

@Fiasem20, you don talk better thing, omo saving they save life oh, you no go get moni for saving come they borrow money from friends wen e red na. We save so that e go save us tomorrow,  but person need dey mindful on how e spend moni so u nor go dey touch ur savings. But incase of emergency you no get any option than to use it to dae life first. Bcos if you die, na another person go chop ur money oh.

E good to reserved funds for raining day shall, so wen u getoney money buy more BTC and hold.

Whether reserved fund or emergency fund,the thing be say if you be beginners or not e good make you set aside fund wey you dey use hold your side in other not to tamper your portfolio.Nai make in most cases dem prefer emergency funds,so dat incase of emergency cases like hospital bills, car repair and many more,nai make emergency fund na really the backbone of an investor wey dey invest in Bitcoin.You fit mistake reserved funds for emergency fund or call dem the same things but the thing be say na two different things dem be.Reserved funds na moni wey dey for your savings account while emergency funds na fund wey you suppose get incase of there is an emergency when you dey invest in Bitcoin.

I disagree with you bro on the bolded statement above. How will you depend on people to live and you are investing in bitcoin. Human beings will disappoint you at the very time that you need their help, and moreover nobody is planning you in their budget. I guess that you don't have a family and that is why you are saying that. If you have people that are your responsibility to take care of, you will understand that financial management is very important in life.

Please don't mislead newbies here in the forum because I know that the OGs already have bitcoin investment and they know the best way that they are using to cope without selling their bitcoin when it is not of their will. If you don't have the money to buy bitcoin and having emergency funds as back up in order to safeguard you from selling your bitcoin at loss when an emergency arises, there are newbies who are rich and will love to invest in bitcoin in long term and they need proper guidance on how to go about their bitcoin investment so that they don't face challenges that will make them not achieve their goal.

For a new beginner to invest in bitcoin, you shoukd have it in mind that you should make provisions for an emergency funds that you will use to solve emergencies when they arise so that you will not sell your bitcoin investment. This means that don't use an amount that you will not be able to forget about to buy bitcoin, only use that amount that you will not need in a long period of time to buy bitcoin from your savings regularly every month and gradually you are building your bitcoin portfolio.

I've been hearing about this reserved fund for a while now and I quite understand what it's all about but from what I understand, I'm finding it difficult to understand as you separated reserved fun from emergency fund, I always thought the both are thesame and here are my reasons. The definition of emergency funds also meet that of reserved fund, and come to think of it, as bitcoiners, what the essence of having two separate saving out your Bitcoin investment. Actually I would prefer using all the money for reserved to invest in Bitcoin while I still have an emergency fund to back me up should in case of emergency, if there is any reason to buy anything I've been anticipating for a while, then I'll just have to withdraw from my bitcoin and buy, after the fund might even gain value over that period of time.

Citing from your first line of statement OP,  in the accumulation journey, you are advised to have an emergency fund backup for your pressing needs and use your spare funds, more like find you're not going to need in a long time for your bitcoin accumulation.

You are not advised to tamper with your portfolio until its 4 - 10 years or even more, so that your investment would be profitable and you can spend wisely from it. If you don't have an emergency fund, or a good side hustle that can sort your need, there no need accumulating bitcoin.

Bitcoin is volatile and at the time you want to cash in your investments, it might be a bear market and you'll be cashing out on a loss which defeats the intent of investing in the first place

From my own point of view I no see anything different from the reserve fund you talk of and the normal emergency funds wey people don extensively exhaust with discussion for speculation board. The ideas, approach and usage of both reserve and emergency funds dey similar if not even the same sef. Moreover, taking one time out of life to use jollof no go end for person life because we wan invest and also get reserve. As you dey invest also the get time to chop life small small.

Everything depend on the individual and as far as I am concerned, majority of us do not belong to the category that will have enough funds to finance bitcoin accumulation such as through the DCA, set aside money for basic needs, emergency funds and still keep reserve funds. If we are propounding theories, we must consider the viability of such theories else we will make buying and holding bitcoin so complicated that starters might consider not getting started at all. If you have money to buy bitcoin and still have some to use and eat and take care of your needs with small change to support you when things not plan happens, you are good to start investing. As a Nigerian even if you have money to buy bitcoin and meet your basic needs and have people that you can call to rogger you small thing later you balance them up, you still dey ok to build your portfolio. You don't have to keep emergency plus reserved funds before you go run the matter.

Op I really don't see the difference between hodling and keeping reserve funds. Hodling in the first place simply means owning some Bitcoins and keeping them from spending them. In that case you are simply making a Bitcoin investment for different reasons like battling inflation and most especially to make profit. If not for the fact that hodling is in Bitcoins mainly, it's same as keeping some reserve funds.
Op the backbone per say of an investors investment is the capital and the profit it attracts. Saving in fiat is not wrong rather it is less profitable based on the fact that it's value falls each day because of inflation. Although Bitcoin too is a volatile asset, people overtime have come to accept it as the best crypto investment mainly because of its breakthrough over the years.

Make a budget and add an expenditure for emergencies and unplanned events so that you will not be under pressure when an unexpected event pops up. if you plan to accumulate bitcoin Budget, there are many unexpected events that could occur and prompt some kind of unplanned expenditure, you have to ready.

Having some of your income budgeted for unplanned expenses, is a safe way to make plans for the unexpected.

You are misunderstanding the difference between emergency funds and reserve funds. It is emergency funds that is very important when you are investing in bitcoin and plan to hodli for a very long time. Like you said it is emergency funds that is the back bone and should be your priority when investing.

Reserve funds is the back up to your emergency funds, and that is used to buy bitcoin when there is a dip, repairing of your car or buying a new one. Going on vacation and also going to eat in an expensive restaurant. While the emergency funds is only use when a real emergency occurs that if it is not taken care of it will lead to more destruction. Like when a storm pull off your house roof, when you lose your job, this is when your emergency funds will be spent.

Bitcoin investment no mean say person no go plan to enjoy himself, afterall di main reason wey we de take do investment na to enjoy a better life for future. Di solution to not spending money anyhow na to get budget for your income, you need to get plans for every expenses wey you go make so dat distractions no go enter, anything wey no de for di budget no go follow for expenditures. So person fit to make budget once in a while for fun and enjoyment because all work and no play no good for mental well-being.

Competition no de for Bitcoin investment, person go accumulate and hodl as im power reach from di budget wey im map out for investment. Di most important thing na to comot money for di basic needs of di month, save some money for miscellaneous and emergency expenses, den comot money for your Bitcoin DCA method. Once in a while if no emergency expenses happen, then e good to take di money to entertain yourself, afterall na you work for am.

In the process of our Bitcoin accumulation, it is beneficially necessary we keep aside reserve funds. Reserved funds are money kept aside for future purposes and these incidents are likely anticipated, it is slightly distincts from emergency funds.

Most investors now successfully keep aside their reserve funds but in a way are spending from it for the wrong reasons. These funds are the primary backbone of an investor and should be carefully spent, if wastefully spent then comes the need for financial involvement whereas if there is nothing left in the reserve funds balance then the investor will be left with no option than to terminate part of his portfolio which is a wrong practice for a good investor.

Our reasons as to spending from reserved funds shouldn't be for fun or enjoyment purposes so when a more pressing financial need strikes we should be able to afford it and not cater on how to raise such an amount of money.