Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Mayor of ogba
on 27/02/2025, 22:23:54 UTC
⭐ Merited by JayJuanGee (1)
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.
We almost always make a mistake (not everyone, many) and that is, when we make a long-term plan, we do not create a support fund at the same time. How does this happen? Let me explain a little more, a long-term plan is a plan that is implemented over a long period of time. And a long-term plan gives us a little more profit. If there is no support fund, that is, if that fund is not used during a disaster during this long period, then it is natural that the planned long-term plan will be damaged, so before making any long-term plan, we should always create such a support fund, whether it is a stable income or a volatile income in my opinion.
You have been registered on this forum for a long time, and I believe you have been posting in this thread for a long time also, but I am surprised to see you say that we don't make provision for an emergency fund when we are investing in bitcoin for the long term when an emergency fund has been discussed in this thread so many times. All old investors in this thread know about the emergency fund and the major role it plays in bitcoin investment, so I believe all old investors who have been investing in bitcoin for the long term have made provision for an emergency fund so that they could probably solve their unexpected problem anytime it arises. Since most businesses in a country accept fiat as a medium of exchange, it is better to save your emergency fund in fiat so that you can easily use it to solve your unexpected problem when it arises.