Quote from: Mayor of ogba on Today at 04:47:06 PM

Quote from: Zanab247 on August 19, 2024, 05:08:31 PM

Even though you invest all your money on BTC and have emergency money that can make you to exercise patience till the bull run occur before you can sell

An emergency fund is money set aside to solve unexpected financial problems and not to be used to solve daily expenses. So, if any investor invests his whole money into bitcoin with the idea that his emergency fund will allow him to hold his bitcoin for a long time, that investor will end up selling his bitcoin to survive even though he is at a loss because his emergency fund cannot take care of his daily expenses for a long time. If anyone wants to get it right with a bitcoin investment, that person should invest what he or she can afford to lose and also keep an emergency fund, a reserve fund, and a float.

Having a continuous flow of income is what is most required if you’re investing in bitcoin for a long term, either through DCA or lump sum. Emergency funds are important to be set aside even before you make an investment in bitcoin. It is very important to know that having your weekly or monthly income running, setting aside the money to be used for expenses on a weekly or monthly basis, setting aside emergency funds then ultimately investing the rest in bitcoin is the more preferable approach in order not to feel tempted or have any need of touching your portfolio to solve any other financial issues that arise.

Unforeseen circumstances happen but if you’re able to plan your investment well before starting, you will not need to touch from your investment funds to solve any issue that comes up. With a continuous flow of income, and an emergency funds also, when faced by an emergency financial crisis you don’t need to panic if the emergency funds won’t be enough and can’t solve the issue that may come up. What you need to doin such situations is to just halt the investment, solve the financial problems you’re facing. After that, you can then keep some emergency funds down again and continue your investment as before.