This emergency fund is exaggerated at times, it is not the money to pay your usual bills but for unforeseen situations, "which may never happen," so why not try to multiply it with Bitcoin in bull season? Needless to say, your funds in Bitcoin are accessible at any time if at all you have a reason to withdraw it or some of it. Why not take the risk instead of keeping it in the bank and letting the bank make money on you while you earn nothing? This can only be dangerous if you don't have access to your BTC. And who knows, you may never have a need for the emergency fund for years, which makes it wise.
No investment journey is smooth and for that reason, you should expect the unexpected, because some unforeseen circumstances must definitely play out during your investment journey since you arw investing in a long-term investment. Examples of unforeseen emergencies that can occur during your bitcoin investment is sickness or accident, the lost of your job, a heavy storm blow of your roof and some others. If such emergency happens and you have not set up your emergency funds as you are investing in bitcoin, your bitcoin investment will become your emergency funds and you will sell your bitcoin to take care of such emergency. If bitcoin price is dip below your entry point you will sell at loss.
Keeping your emergency funds in bitcoin is not ideal because bitcoin is a volatile asset, it might be that when a real emergency arises, the price of bitcoin will be at the dip which will also make you be at loss when you are selling your bitcoin that you use to keep your emergency funds. Since emergency can come up at anytime unknown to us, it's good that your emergency funds should be in cash for easy access when it arises. Emergency funds can also be top up when you feel it has reduced, and this is why you use have an emergency funds of at least three months of your monthly income as the guage.
You need cash availability when investing in bitcoin but not the cash that you are suppose to use to put into your bitcoin investment. We cannot do without spending cash daily but we can do without touching our bitcoin if you have a good financial management on your bitcoin investment and your financial needs.
The journey of a Bitcoin investor is not smooth. However, if you want, you can make it smooth by investing patiently. And if you have to pay a deficit in the emergency fund, it is better not to stop and try again. If the investor has to pay a deficit from his emergency fund, then it would be better for him to open a stop loss setting. According to the ideal of Bitcoin, try as much as possible to do something alternative instead of selling Bitcoin assets for emergencies. If such a situation arises and you are forced to sell Bitcoin due to illness, even if you have a deficit in Bitcoin. Then have the confidence that you can return to investing very soon. However, any investor should definitely set up an emergency fund, and it should be done in such a way that the amount of your 5-6 months' salary is allocated in that fund. An investor should always keep a fund backup. Because the need does not come for nothing. An emergency fund should be made mandatory in the case of Bitcoin