IMO funding your emergency fund should come first. We should only invest once we have saved enough money for emergencies to cover future expenses for at least six months or a year. If you lose your job or the price of bitcoin goes down after you have invested, you won't have anything left with you. However, there might be adjustments to plans along the way. if you see any opportunity that you are certain will give you enough money if you invest in it, then it is worth taking the risk.
There is absolutely nothing wrong with what you say because if someone already has mature enough intentions and planning for long-term investment, of course the funding must also be mature enough. As you said, someone must have an emergency fund which must be prioritized as the main point before funds that will be used in their own investments for the long term. Because it is also very possible for an investor who invests in Bitcoin not to withdraw the funds that have been invested when market conditions become bad or when the price of Bitcoin itself experiences a correction like now.
So I think that's right, because that's what should be provided first before someone immediately takes investment steps with a simple plan, but not with sufficient consideration. I often liken it to a long journey with the preparation of two provisions that must be separated first before they are actually used in different places. So in this case the emergency fund is the main provision and investment funds are the second provision so that an investor can carry out his investment with enough discipline in something.
How much of emergency funds do you think will be first reached before then planning on beginning one's investment budget. This could be from your own perceptive but I see it as being a waste of time, where as I know how much of Bitcoin I must have loaded in my portfolio.
@teamsherry on his opinion decides to load his emergency funds for a six month space, do you know how much dips, call it a significant entry price that one should have DCA during that time.
One thing we should know, even in the process of saving that emergency funds, we still have to face certain problems which means we also have to alter the loading up of the emergency process, like still taken money from their to solve some life challenges.
I believe money from your cost of living has covered a lot of expenses and for the emergency fund is just there to cover up little more expenses, so why not convenient doing both.
While waiting for long time as much as six months to build your emergency funds before investing would be a really slow process for me and also a lot can happen between the time he/she wishes to start investing and the six months of waiting to build your emergency funds up before you start investing, since we are talking about possibilities, we could also consider that the newbie could get tired or even use the money for something else, or something more realistic this individual may start to be confused on when his emergency funds would be large enough to start investing.
So my advice would be same as always advice on this thread, start investing with DCA even if it's a small amount then use a percentage to build up your emergency funds, but let's also consider that this newbie might not know very well how to chuck down his expenses to save more or use other strategies. Let's consider this example, this person earns about 200$ every month and has not built or have any savings prior to him making his decision to invest in bitcoin.
And he choses to allocate up to 25% of this earning into DCA as a start, he could instead divide his allocations Into 10% for DCA and 15% for building up his emergency funds or vice versa.
This way his emergency funds would be ahead of his investment while he finds out how he can fix his overall monthly or weekly expense and allocate more to his DCA or his emergency funds. And when he feels comfortable with how much he has in emergency funds then he could either decide to allocate all 25% to DCA and set hi.self on track or use that 15% for dip buys or any strategy he favours.