Topic: Challenges that can deprive/ delay one from hodli for long. - page 2. (Read 268 times)

It's a pity that as many as possible are the challenges that can lead us to release what we have hodl when tge situation turns around against our wish that we have to release instead of holding the more, most of these are as a result of unforseen circumstances that are not negligible forus to do without, while some have been that lucky that they always hold their investment till when it is due for sell, no matter how dip the market is or how they have been obligated for a release of asset.

Fomo is one of the things that make some people who are not financially stable invest in Bitcoin without proper thinking and strategy because they don't want to miss out on the people who hold Bitcoin. Don't invest in Bitcoin if you know you don't have any source of income because you will end up selling your Bitcoin at a low price when hunger hits you and there is no other money with you to feed, you will have no choice but to sell your Bitcoin to settle your stomach.

Another thing I think that makes some people sell their Bitcoin is the lack of "Bitcoin fundamentals". When people lack Bitcoin fundamentals and they go into investing in Bitcoin, when there is a price drop in Bitcoin they will be afraid that their money is going to zero, and with this fear, they will be pushed to sell their Bitcoin to recover part of their money before it will go to zero.

Invest with what you afford to lose. It means you should never use all money you have for investment. So in emergencies like sickness, lose jobs, you will have other money like savings to use and don't touch your investment part.

With savings for emergencies, at least you won't immediately touch your investment part to have money. After a while, hopefully you will improve your financial situation with new jobs, get better health.

If you invest all money, in emergencies, you have to sell your investment assets even you don't want to sell or even you know you have to sell it with loss.

As a bitcoin investor, there are some challenges that can make us unable to invest in a long term due to some certain reasons.

Lack of income If you want to invest in bitcoin for a long term, it is important that one should have a source of income which will enable him use some percentage from his income, let me say like 10%. This will enable the investor to be able to DCA with a particular amount regular, and will lead to increase in his bitcoin portfolio, so that during the long run, he can have a significant amount, which he can take profit after the long run when bitcoin has reached his price target. When you don't have a job or a mean of income, this will totally kill your dreams of reaching your bitcoin target. Some people after acquiring bitcoin to an extend, they quit their jobs that pays them, which they used part of it for investing and believe that the price of bitcoin will keep on pumping to survive them, this is another great mistake some newbies does because we need fiat currency if we are investing into bitcoin for our daily use.

Lack of preparation : In whatever investment one wants to go into, it is good that you prepare yourself very well with the knowledge that you have acquire so that you wouldn't be trapped at the middle of everything and go back to level zero. Bitcoin investment needs a proper insight to know how much fiat funds that you have available at even given period of time, which can be used for an emergency needs, so that you don't go back and sell your bitcoin when you don't have fiat on you anymore. In this one needs to know how much income that you earn, and what type of strategy will fit into your cash inflow, either DCA, lump buying or buying at the dip, or rather still using all method based on the level of funds in your possession at that time.

Lack of knowledge : Knowledge is power and leads to one success in whatever he is doing. A bitcoin investor needs the knowledge of bitcoin first before jumping into investing. This will enable him to be able to know the price movement of bitcoin and not to panic and sell, when he sees a slight change in the market or hear any bad new that will affect the price of bitcoin to drop drastically. This is also enable him to know the right time to buy and sell without regrets.

Trading : Trading is like a distraction to long term hodli because you will be busy thinking of making daily income and not having plans to hodli for long forgetting that long term holders benefits more that traders in the long run. Also due to the unpredictable price of bitcoin, it is very possible that you will run at loss, especially when you are a newbie because hodli doesn't need any skills but discipline, while trading needs skills and market strategy. You will be open to loss more of your bitcoin to trading than holding because you might end up making the wrong decision.

Sickness : This is another factor that can make a bitcoin investor not be hodli for long. You will notice that there are some sickness that will make us not able to go to work anymore due to its critical condition. One will not be able to earn anymore but will need to take care of himself and this will make him go and sell his bitcoin. It is better to use your bitcoin to take care of yourself and become healthy rather than die and leave your bitcoin in your wallet.

One source of income :  This happens to those people that their earnings is not big, but could invest in bitcoin from their income Some investors due to hardship from inflation might not have enough money like they use to have to take care of their important needs and families,because if this their bitcoin investment will be tampered. All that they have bought will be sold off at a price that is not their will. If you find  yourself in such situation, it is good to look for another job to add to the one to increase your income so that your bitcoin dreams wouldn't be shattered by inflation.

You can add yours to it as I will stop here.
Let's discuss.