We often get too pragmatic while investing, and don't plan for the future at all. Proper planning is essential to make an investment successful. Even that plan should be from the beginning to the end of the investment. Every investor should consider having a back-up fund and it is better if this back-up fund is more than the amount invested. Because you can divide this back up fund into several parts and prepare different funds for different periods. Be it a reserve fund or an emergency fund, you prepare the funds depending on your needs. But I consider the emergency fund a must. An investor should always be prepared for the unexpected.
The reserved funds don't necessarily need to be bigger than the money invested. Provided you have as source of funds. In most cases, you don't even necessarily need to have the reserved funds set up in place before starting to invest in bitcoin. It is something you can gradually build up even after you made your investment. The most important thing is for you to get started with your investment. Waiting to build up a backup funds or reserved funds before starting your investment is not a wise practice. But often times we see some individuals or groups of individuals who thinks that without the reserved funds being in place, that one can't start investing. Get the investment started right away and figure out everything else down the line.
@Justbillywitt, Why are you mistranslating my sentences? You're misunderstanding 2 places in my sentence, it's better for a back-up fund to be bigger than an investment fund. Here you are not forced to keep increasing back up funds against your circumstances. I want to stand by my statement now. The second point mentioned is that there is no need to prepare any funds before investment. I agree with you, but dude I didn't talk about setting up reserve fund before starting investing in my speech, it's not even required. Start investing first and then take other initiatives. But you need to plan before you start investing. I don't know if any group says it or not, but I never say or say you shouldn't invest if you don't have funds saved up before investing, I often say if you don't have the ability to at least have an emergency fund ready or the ability to get through the emergency without having to invest. Entering into his investment would not be the right course of action. You need to understand that capability and planning are two different things. Planning doesn't mean you have to do everything right away. You can plan before starting the investment if the investment is 'x' amount or along with the investment I will prepare a reserve fund. You should not delay investing to prepare this fund.