You should never ignore emergency fund in your investment management every investors should know this by now that emergency fund is very essential for an investor to set aside.
Emergency fund is also an important for life management, as an investor you should feel the need of emergency fund as human being that you are.
emergency fund is not only for common person, even investors who owns billions and millions also need an emergency fund for the smooth running of there investment.
Long-term investment requires not only emergency funds but also some other strategies.
There are certain strategies that must be followed in order to invest in your Bitcoins for the long term.
Basic knowledge.
Long term investment plan.
Adopt Dca method.
emergency fund.
Long Term Investment Plan:- You must make long term investment plan. Reduces risk and brings success in long-term investments.
Basic knowledge:- Basic knowledge about Bitcoin is a must. Bitcoin is financial freedom, investment, security and digital economy of the future. Works differently than conventional assets (like stocks, gold, real estate). Investing in it without proper knowledge has high probability of loss.
Adoption of Dca method:- Investing in DCA (Dollar-Cost Averaging) method every week increases BTC yield and reduces the amount of risk. Because investing in steps reduces the risk. You are buying BTC every week when the btc price rises at the beginning or end of the month. When my btc price drops you are buying btc every week which means your average purchase price is also average. Using DCA method does not need to pick the right market time.
Emergency Fund:- Long term investment may or may not have emergency fund.
But I'd say it's better to have an emergency fund for long-term investments. Because of the need to have an emergency fund so that there is no hindrance in the investment field in case of financial problems during the long-term investment.
A long term investment plan in DCA method will be good for you. Those who are experienced can invest freely in any strategy. New and old everyone can invest in DCA method.
I would say investing in a new position is not a complicated matter if certain strategies are followed properly.