A person who does not keep an emergency fund with Bitcoin investment may have missed out on an investment strategy. Every investor needs to know investment strategies, whenever you face any danger, you can deal with that danger with your emergency fund.
It is possible to sustain his investment in the long term based on Bitcoin investment plans and strategies, because the more the Bitcoin investment follows the DCA method, the more his investment will be able to accumulate more sales in the long term and in the long term. Therefore, the most important thing should be given to Bitcoin investment strategies, because these steps are definitely needed to sustain the investment.
I don't think emergency funds are that necessary when someone has stable sources of income. For example, when someone is a wage earner or salary earner, their income can simply serve as emergency funds if they plan well.The reason why I feel someone needs emergency funds is when they don't have stable sources of income. These are the people who need emergency funds in case anything comes up in the future. This way, they won’t need to dip into their investment funds.However, as long as someone has stable sources of income, those incomes can serve as emergency funds. The only thing is that if someone wants to enjoy Bitcoin investment, they should use the DCA (Dollar Cost Averaging) method and avoid buying all at once.
Hold on. Did you just say an investor can use his income in place of an emergency fund? How satisfying are you feeling after saying such a thing? No, it doesnt make sense. What if you lose your job or your income suddenly stops coming? To be more realities here now, what if an emergency happens before you next paycheck or your incomes is been delayed for sometime before you are paid?
Investment alone is a risk and your adding another risk top it by skipping the importance of emergency fund. The real definition of an emergency fund is the money you keep aside for unexpected life happenings it is not the one you are expecting to come. No matter how steady your income may seem to be, life is unpredictable, anything can/could happen at any time.
Perhpas you dont know that protecting your investment is another strategy on its own. Even if you are stikcing to one Bitcoin investment strategy this one is also as important as any strategy you are using to accumulate.
Dont sabotage your investment because of ignorance.
A person who does not keep an emergency fund with Bitcoin investment may have missed out on an investment strategy. Every investor needs to know investment strategies, whenever you face any danger, you can deal with that danger with your emergency fund.
It is possible to sustain his investment in the long term based on Bitcoin investment plans and strategies, because the more the Bitcoin investment follows the DCA method, the more his investment will be able to accumulate more sales in the long term and in the long term. Therefore, the most important thing should be given to Bitcoin investment strategies, because these steps are definitely needed to sustain the investment.
I don't think emergency funds are that necessary when someone has stable sources of income. For example, when someone is a wage earner or salary earner, their income can simply serve as emergency funds if they plan well.The reason why I feel someone needs emergency funds is when they don't have stable sources of income. These are the people who need emergency funds in case anything comes up in the future. This way, they won’t need to dip into their investment funds.However, as long as someone has stable sources of income, those incomes can serve as emergency funds. The only thing is that if someone wants to enjoy Bitcoin investment, they should use the DCA (Dollar Cost Averaging) method and avoid buying all at once.
You are wrong mate, you cannot use your income as an emergency funds because it's stable. When you are investing in bitcoin, you need an emergency funds separately from your income to take care of an unforeseen emergency that will arise so that you don't sell your bitcoin and take care of that emergency.
In your monthly income, you have your monthly expenses from their to take care of your basic needs, and the left over is what should be put into bitcoin for investing, so how will you say that you can use your income to serve as emergency funds. Let me highlight you on what we call real emergency that such funds is used for. If you lost your job, how will you survive without preying into your bitcoin investment.
Another emergency is if your roof is pulled of by storm and you haven't been paid, where will you look up to on how to fix your roof. Improper planning leqds to early selling of your bitcoin portfolio. An emergency funds is very compulsory for all bitcoin long-term invetors for them to be successful in the long run.
However, an investor with a large discretionary income, that's someone who have various source of income or investment, might not really have his emergency funds, because he can use one of his business to serve as an emergency funds incase an real emergency happens. This is because he has various places to tap funds from to solve any real emergency. Such person will be at a better position to invest more aggressively.
This is why if you don't have an emergency funds but have your discretionary income to get started, you share it into two parts and invest one part on bitcoin, the other part to build your emergency funds. As you are DCAing every week, same way your emergency funds is growing.
I concur to everything you have said here. What he should know is that life events dont usually follow the market trend and as well is not tied to our income. They come unexpectedly, when we least expect it. At times it comes in the format that one get to lose his job. Imagine an investor who lost his job during the 2017 and 2018 Bitcoin crash. He wouldn't want to sell on this dip but without emergencies fund he will have to sell almost everything to put food on the table, it becomes worst when has a family and they all have their individual needs.
Many persons mistake emergencies funds to be saving in fiat. The essence of emergency fund is so that an investor dont have to sell equities if an emergency occurs at anytime. Another reason for emergencies funds is also for adding more liquidity to our investment when there is a down turn of the market. This is specifically for people who have more than enough active income.