Quote from: adultcrypto on August 20, 2024, 11:59:16 PM

Quote from: Winterfrost on August 20, 2024, 07:04:30 PM

Quote from: Justbillywitt on August 20, 2024, 04:59:35 PM

Newbie or no newbie, it is not advisable to invest all your money in bitcoin. No matter how much you think is in your emergency funds account. It is advisable to always keep your sources of income open even though you have kept emergency funds aside. Because you don't know the kind of emergencies that might come up tomorrow. It could be an emergency that will consume all your emergency funds at once. So at that time you have invested all your money in bitcoin and the emergency funds you have kept cannot solve the problem, at that point what will you do? You will definitely go to your investment. But if you had kept your source of income flowing, you won't be in that situation.

If you invest all your money in bitcoin to only depend on your emergency funds, equally mean that you have a short term hold mentality. Because you are just waiting for a slight upward trend to sell off.

Emergency funds is crucial for a well sustained investment be it short or long term. No matter how short it may look like in between those space the investor can be faced with extreme life expenses that requires immediate attention and emergency funds should be rightly available to solve such problems, mostly at the early stages of accumulating Bitcoin. One other thing to clear off is that our emergency funds is separate from money kept aside to carry out living expenditures, so it is not right to invest all we have into Bitcoin all for the sake of getting out of it a bigger profits.

Experience is applied during the process of accumulating, it cannot be reversed when already put into action by investing more than should have, getting out of it with the only option is to sell too soon which is not recommended, so to avoid this from happening, investors are advised to invest more deligently according to availability of funds.

Short term investment is just like trading and that does not require much of emergency funds because if you understand what emergency fund is, you will know it is best suitable for long term investment because it serve as a protection of the investment itself because that is what the investor resort to when there is issues that need urgent attention which was not accounted for or expected to happen. If someone buy bitcoin and hoping to sell when price rises a little and he see reasonable profits, I do not see the need to keep emergency funds. Therefore, emergency fund is indeed crusial to sustain the investment but it is mainly for long term investment.

Emergency Fund Requirement is a very important chapter for every investor as it is your responsibility to maintain your investment while it is running. Short term trading is a form of gambling. Long-term Bitcoin investing recommends you keep a large emergency fund to cover your household's daily expenses for at least 6 months or more. Growing your emergency fund depends on how long your investments last.
Emergency fund is not only necessary for long term investment but also for every investment. This is because if you invest in Bitcoin and its value goes into a further down trend right away, you may face more losses. If you have an extra emergency fund, you can reduce the UP by creating opportunities to buy more bitcoins in a down trend which can increase bitcoin holdings in the future.