- To ensure my Bitcoin investments don't unduly affect my peace of mind amidst market fluctuations, I've estimated the amount my family needs for expenses over the next five years (let's say it's $200,000). I keep this sum safely in a bank account, untouched for investments or other purposes, solely reserved for expenses. By doing so, I've found that my state of mind is significantly more relaxed, and it prevents me from making hasty decisions, such as selling my investments for daily expenses.
I feel that this is a miscalculated plan because government policy might change anytime and all your funds in the bank will become affected and your supposed peace of mind will be taken away from you.
In my country, there was a time when the central bank decided that no one was allowed to withdraw up to a certain amount and it affected those that saved huge amounts of money in the bank. But imagine you converted a reasonable amount of your wealth into crypto assets, no government regulation or decision will affect you.
Plus, $200,000 is a huge amount of money that you can decide to hodl a reasonable fraction of it while saving the ones you will need for your upkeep. The fluctuation shouldn't bother you that much if you don't invest all of the $200,000. oncest part of it and patiently wait till the returns become something reasonable