But before a newbie start accumulating it is always advisable to have built an emergency funds at least 3-6 months.
I really doubt that it is necessary to build up an emergency fund of 3-6 months prior to investing into bitcoin... People woudl never invest into bitcoin if they have to build up their emergency fund in advance..
Sure maybe the emergency funds and the bitcoin investment could be built up at the same time.. at least until a person gets to around 3 months of an emergency fund.
I speculate that an overwhelming number of folks who do not have investments, they still might well have a practice of having 2-4 weeks of floating cash that they might not call their emergency fund, but is serving as an emergency fund, so if a person is starting from a point in which s/he already has some floating extra money that is already available, then there likely is a need to just consciously build that amount while also beginning to invest into bitcoin, and yeah, sure the investment into bitcoin may well have to be whimpy and/or conservative in the beginning while building up the emergency fund to at least 3 months and then once the emergency fund is 3 months or more, then there well come more liberty in terms of becoming a bit more aggressive in his/her bitcoin investment (DCAing or otherwise accumulating BTC).
Doing that could provably destroy their focus on accumulation and might they might create some misconceptions regarding on what are best thing to do when they are starting up. So what I think much better for starters to do is to focus first in their investment and once they already see the results like they are already gaining with their investment then they could able to start building up the funds intended for emergency situation. Since this could give them clear mind to decide next good actions that can make their life became more better compare when they are starting.
Why are you going from one to the other? Why can't a person build up his emergency funds while he is investing, rather than having to do one first or the other first? Guys should be able to engage in multiple kinds of building at the same time, even if maybe there might be a bit of a focus to build in one area more than the other.. so if we get back to a kind of typical example in which most people probably already have a bit of a cash cushion of maybe 2-4 weeks - though more importantly once they start to invest into something as volatile as bitcoin, 2-4 weeks of cash or cash equivalents should start to feel way under-adequate in terms of how much protection that 2-4 weeks of cash is offering in terms of an investment as potentially volatile as bitcoin.... ..so yeah..maybe or maybe not there could be a desire to first buy the same amount of bitcoin that is equivalent of whatever level of cash reserves the guy has and then maybe to grown them at the same rate until each of them reach 3 months of expenses... yet at the same time, these are surely discretionary matters in terms of how much importance to give to each of these kinds of priorities that may well vary depending on the stability of a guy's actual disposable income and surely there are some guys who have way more solid disposable income.. decently strong income sources and decently clear expenses, yet there are others who have a lot of variability in both their income and their expenses, so the one with more clear and stronger disposable income is going to be in a better position to weigh more on the side of buttressing up his investment prior to his emergency fund.. yet surely anyone could also end up making mistakes in terms of overdoing their investment or maybe even underinvesting.. so the actual balance might well not be the same for each person, and sometimes the extent of the mistake might not be initially realized.
You are correct, before I started my Bitcoin accumulation journey I did research about Bitcoin because I wanted to have a little knowledge about it before I could invest so after my research I decided to invest and I started participating in this forum, I never knew having an emergency, reserve and float funds are key to always keep your investment going even though I had some savings at that time. So what am I saying, if as a newbie you have started your Bitcoin investment before having the idea of emergency funds is advised you also build up your emergency funds together with your Bitcoin accumulation because two of them are very important you can decide to have a target of stoping your emergency funds investment after 3 to 4 months then continue your Bitcoin accumulation, at that point of building your Bitcoin and emergency funds don't be aggressive in your Bitcoin accumulation you can decide to be aggressive after meeting your target on emergency funds and stopping it, in other to have a successful investment you need a strong emergency, reserves and float funds so anything you are doing try as much as possible to build up your emergency, reserves and float funds very well reason being that when a big issue or problem comes up it is only a strong emergency, reserves and float funds that can save you from dipping hands into your Bitcoin investment.
Now in terms of how much attention should be given to emergency, reserve and float funds and your Bitcoin investment I well say give more attention to your emergency, reserve and float funds at that point of building there two together reason being that investing on your emergency, reserve and float funds are for some time why accumulation of Bitcoin will take a very long time for those going for long term investment like me, so you need to give more attention to your emergency funds in other to strong them very well since you will stop it soon some people grow there emergency funds for 3 to 5 months and then keeping Accumulating there Bitcoin investment for years so it will be wise to focus more on your emergency reserves and float funds more when building two together,
After you must have grown a strong emergency reserves and float funds you can now accumulate enough Bitcoin as you want.
For me I will keep growing my emergency reserve and float funds together with Bitcoin investment because is not affecting me in any way I have my percent for emergencies, reserve and float funds and then my percent for my Bitcoin accumulation after reading what JayJuanGee said yesterday about emergency that may eat up your emergency, reserves and float funds and still cause you to dip hands into your Bitcoin investment I have decided to grow my emergency reserve and float funds for some years together with my Bitcoin investment in other to make my emergency, reserve and float funds strong enough to handle challenges and I also pray not to face big issue that my emergency reserve and float funds can't handle, when I will stop growing my emergency reserve and float funds I then become a little aggressive on my Bitcoin accumulation, now that I'm building two things together is not affecting me and funny enough I'm growing them very well.
Any investor can succeed with the DCA strategy, whether in holding or in buying and selling. But the most success will be in case of long term holding, because by buying little by little means you can build wealth, but according to this strategy all investors are successful. If participating in the investment following the regular DCA procedure.
The DCA procedure is only more suitable for buying, not for selling because by buying using DCA the collection of assets will certainly be more perfect if it can be done regularly like with Bitcoin. However, in terms of selling it, I think every investor no longer needs to apply the DCA procedure because every investor can set a target according to their own wishes when they want to sell it again. And even investors who prefer to buy using this method will usually not be more likely to think about selling in the near future before what they are accumulating becomes much larger.
Even though traders might apply somewhat brainless and simplified practices of buying and selling.. DCA tends to be a liong term investment strategy, and it may well not be applicable to engage in DCA selling kinds of strategies, unless you are trying to get out of the investment.. which sounds to me more like a trading rather than an investment strategy.. so long term investing may have selling strategies that are time based and/or price based.. and surely there could be a decent amount of variation.. especially if someone might have taken 4-10 years to build their position, they might end up with other kinds of strategies in terms of if they really want to completely get out of bitcoin or maintain their investment in bitcoin through their which might push them into a much slower and an attempt for a sustainable withdrawal strategy rather than an desire to get out of bitcoin completely...except for traders have other kinds of gambling and/or short term ways of thinking that might not be very good ways to go forward when it comes to an investment like bitcoin.
As a newbie it is always advised to go for long term investment in other to be successful in your Bitcoin investment, I will keep saying that trading of Bitcoin is the worst strategy when it comes to bitcoin investment, Bitcoin is not a Ponzi scheme in other to grow and become successful in Bitcoin you need to have patience and that is why you need to go for a long term investment, some people will hodl only for a very short term like 4 to 6 months and then they sell off there Bitcoin for me that is still trading, Bitcoin should be held for 5 to 10 years in other to see the really benefit.
I didn't come into Bitcoin to make quick money I don't have that mindset because that mindset is why a lot of newbie find them self trading Bitcoin and later loses money and before you know it they run away thinking Bitcoin saying is fake.
I have a friend that wanted to make quick money and that was why he invested in Bitcoin but he got disappointed and that was why he lift Bitcoin till date so please all follow newbie don't have the mindset of coming to make quick money in Bitcoin be patient and grow your Bitcoin little by little using the DCA strategy and as time goes on you will see how far you have gone and you will be happy you invested and had patient.