Re: Buy the DIP, and HODL!

Technically you should not be using emergency funds to buy dips.. but you can use reserve funds. Yeah of course people call these things different things, but the idea of emergency funds is to have money to live and to pay for your expense if an actual emergency takes place or if you lose your income for some reason, you have a little bit of breathing space.

Reserve funds would be extra money, so you should never dip into your emergency funds for anything other than needing to live because you ran out of other money.

I think this has been discussed some months back. Money that is kept for an emergency is not to invest in bitcoin and if anyone wants to invest in Bitcoin then extra funds Shou be made available if only the person is really ready to invest. There are some banking apps that one can use to lock funds by weekly, monthly and yearly. The person can choose the plan he wants and I normally select two plans to lock my funds in weekly and monthly because I don't know when the dip would come and if it comes, and fall under the weekly plan then I would use it to buy the dip and I will wait for the monthly plan again and once it unlocked I would use the money to buy the dip again. So with that you don't have to spend your emergency funds again.

Now if you buy the dip with the emergency money and something happens within the week and you don't have extra money to solve the emergency need, you have to make a sale of the bitcoin investment you initiated in the week to solve the emergency and if the dip is below the purchase price of bitcoin then you are at the losing side of the investment because you did plan well for the investment. Always keep the emergency funds down the emergency purpose and not buy the dip.

Any investor who is using his emergency fund to accumulate bitcoin when there's a dip is going against the rule of keeping an emergency fund before investing in bitcoin. That investor will never hold his bitcoin for the long term because, when an emergency hits him, he will not think twice about selling his bitcoin, even though he is at a loss to sort out his life. You know, before you start your day, you have to brush your teeth, and you wake up one morning and notice that your toothpaste is finished. That one is not an emergency because we know we are meant to make provisions for it. An emergency is when you have a delay in your weekly or monthly salary payment at the place of your work. You can use the money you kept for emergencies to live with until you receive your weekly or monthly salary payment. You should also replace the money when you receive your salary to make your emergency fund healthy enough to help you out for a long time.

No good investor that will see emergency fund as something to play with in as much as having the intention to hold long term is the aim of that investor, because is not a matter of using it and later replace back reason been that emergency is unforseen circumstances that can't give you sign before it take place

The example I gave in my post above is clear for you to know that a delay in someone's weekly or monthly salary payment is a good emergency that will make that person use his emergency fund to cover up until the person receives his salary. For instance, you used to receive your monthly payment at the end of each month, but something happened at the place of your work, and you got paid on the 10th of the new month. You will have no choice but to use your emergency fund to sort out your bills because you never expected that your salary payment would be delayed.

If challenges like salary payment or other challenges comes up an investor can always rely on their floating or reserve funds till further notice, an investor can decide to build their emergency funds depend on their income and choice but, I personally build my emergency funds time to time cause it stands as an alternative not because I want to withdraw each time I encounter challenges. An emergency funds can always stand and accessible, it’s not proper using your emergency funds always settling every needs without replacing back the money, emergency funds is not meant to stay empty rather build this fund along side with your invest is important. When gotten to a balanced portfolio with your investment (mature investment) an investor can diversify, All this depend on an investor planning and income.