Quote from: Out of mind on Today at 03:25:19 AM

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.

Short term investing is like trading, but there is risk involved in investing for a short period of time. However, having funds is the most important thing when it comes to investing. If you don't have funds, you can't invest. If you have enough funds, you can invest some amount from there. When you invest you may face loss due to volatility in the market but if you have funds at that time then you can reinvest and get profit from it. So I also think it is very important to have an emergency fund to sustain the investment and an investor has a high expectation of profit in it. But long term investment is best as compared to short term placement and profit is easy here.

Your points are not clear enough, there should be nothing like having a loss in Bitcoin investment when the investor is tied to holding and not selling. Those who suffer losses are the people who find confinement in trading than holding, the market is said to be volatile, if it goes upwards, issues an increase in price value and downward which reduces the dollar value of the amount of Bitcoin held. Originally, the amount of Bitcoin held remains the same whether an upward or downward movement, that means not recording any losses. There should really be no misconception on this subject, it's all about buying and holding without the option of trading, should be a long term goal.