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.
Are you refereeing to investment plans or investment strategy. They may sound alike but they are different if you dont know. A plan is how you get to achieve your investment and that includes every steps that needs to be taking as well as setting a goal. While a strategy tend to be like a pattern you use for investment. It can be a contiguous pattern but some persons tend to adapt a new patter when there is a shift in the market structure. What you listed so far is nothing but an investment plan that every investor should take into priority. You dont have to call it a strategy as a strategy for Bitcoin investment are the well known DCA, Lump sum, Buy the dip and so many others.
Every strategy is good for investment but not all plans can yield success in investment. If you observe there is no one way of planning our investment and my reason for saying this is because every investor tend to choose what should be their priority that tally with their goal. It could be risk management and many others.
Bitcoin investment is not a bed of roses because it requires a structured plan and a strategy for accumulation. You cant skip either making plans or choosing a strategy they both work together if you want to succeed in your investment. You also need to know that long term plans like you earlier stated is best because of the long term benefit which Bitcoin has proving over the years what i can do. Aside that there must be consistency and discipline not to make impulsive decision. It often seems to be a lot for new investors to comprehend but deep down once you have started it will become much more easier to be able to invest as long as the investor does not have any thing to do with short term. Only those who think they can jump in and get little profit every now and then faced difficult challenges and we dont call it investment rather trading. Well everyone has to take responsibility of their action, there is no profit in taking a risk that is not worth it so i dont think anyone who see a good way of doing things and shift to the way that will cause them regrets and had i known.