then he never had a sufficiently-sized emergency fund, and he ended up getting lucky that he did not end up having to experience an emergency.. and the person investing 10% was more prepared for such emergency, even though in the case of this hypothetical, no emergency ended up happening... that is another thing with a sufficiently buttressed emergency fund, it might be less than 5% odds that the emergency fund will ever be needed, and so there are choices about how much to buttress the emergency fund, and realizing the fact that there could be some circumstances in which NOT having a sufficient emergency fund could totally wipe a person out... even though the odds still might be less than 5% that such emergency fund will ever come into need.
Yea I agree with you that most times the emergency funds might not be used because no emergency occurred and that is why you must prepare for the emergency funds, so that id a scenario played out for three consecutive months that only 5% of emergency funds or lesser was used, then the remaining funds can be used to buy bitcoin for front loading, while in the other months, you can continue keeping the emergency funds for it to pile up again, if emergency don't occur, but some months emergency will come into the picture. Keeping an emergency funds is of more advantage to the investor, because sometimes, the emergency funds can be put back into your bitcoin portfolio, when it has accumulated to an extent.
From what you have put down here they are all correct but then I am not compromising the truth that 1 - 4 years is long time investment yes way back or far back such investment plan is a short time investment and not even now and I won't adhere to it to fully accept is a long time investment projection for someone to hold as long time investment and of curse not everyone who would understand that 1-4 years is relatively a short time investment and those who weren't a Bitcoiner (newbie invest) may not consider it as short time except you and I know who knows how bitcoin investment works.
It is short term because if you buy during this duration of time and want to make profit, it is a big risk that you are taking since no one can predict the price movement of bitcoin correctly. This is why the basic of bitcoin investment is to invest in a long term, at least one complete circle and above to minimize the risk of bitcoin volatile nature. Ok imagine that you bought bitcoin at 25k last year and bitcoin price is 40k, you sold and cash out making profit unknown to you that the next month bitcoin price will hit 50k and you are with your fiat. If the price hits 50k and above to 100k, you will regret your actions of taking profit early and no matter that you made profit, you will still be blaming yourself because you don't have the opportunity to buy back. There are so many scenarios that will play out that make 1-4yrs time unethical to invest in bitcoin.
Exactly.. a person (newbie into bitcoin/investing) can start out by dedicating 5% to 10% of his income into the investment, and after a few years increase that to higher amounts.. but surely if it remains unfeasible to increase the investment amount to more than 5% to 10%, then such person should just do what he can, and even 5% to 10% will likely add up, even though 5% is likely only equivalent to having had invested a whole year's salary after 20 years of employing such strategy, but 10% has chances of having invested a whole year's salary after 10 years.. and sometimes these higher levels of aggressiveness (when possible) can make really stupendous kinds of differences in therms of the progress made and how the quantities might add up to significant, meaningful and potentially life-changing amounts.
That's actually good figures to invest but knowing newbies they don't easily go with long term investment that's why they also need to experience first how to trade well in the market and after that for sure they would realize that Hodl is so good for anyone and for that they can start this 5% or `10% part of their salary for their investment.
No newbies don't need to think of trading at all before they can learn on how to invest because it is a waste of time and resources. It is not that I don't understand what you mean because newbies wouldn't listen until they have lost in trading. But there are some newbies who have the zeal and passion to invest in a long term, those ones that listen to advice and want the best out of their invested funds. Such newbies should only focus on buying a certain amount of bitcoin that will not affect their income regularly through DCA to increase their portfolio. The only thing that they need is to sacrifice their patience and actions to buy consistently. It is less stressful, when they trade, they might lose focus on their bitcoin accumulation goal because there might not be happy with their loss.