Quote from: SOKO-DEKE on Today at 09:46:36 AM

Quote from: Cryptoprincess101 on Today at 07:55:12 AM

Quote from: Ronsbit on April 03, 2025, 11:25:02 PM

Quote from: BITCOIN4X on April 03, 2025, 10:40:32 PM

Emergency funds are the foundation for keeping your investments safe without being touched by various unexpected funding needs. It's like when you build a house, you need a strong foundation to support the entire building so that it is sturdy, without a foundation your house tends to collapse easily. That's how investing is, you must have an emergency fund as part of how you keep your investment assets untouched by unexpected funding needs.

Some inexperienced investors may only focus on investment goals instead of having emergency funds. They don't know what the consequences will be when they need funds as soon as possible, while all existing funds have already been invested. It could be that they have no choice and have to sell some or all of their assets, which will clearly damage the investment plans they have worked hard to build.

You are right that some investors do not have an idea about emergency funds and how it works but rather, they solely depend on their profit, which sometimes does not go down well with them and when their business begins to shake or have issues, they sell their assets just to solve the problem and in some cases when it overwhelms them, they get frustrated and that is the end of their business.

I once had no idea about this aspect of emergency savings till it dawned on me. That was when I realized that I had no savings. I made a budget for it and began my emergency savings, and it has helped a lot when I am in need of financial backup.

Keeping emergency funds will make you grow in an investment because even in normal Fiats savings, you can't save all your money in the bank and you are left with nothing, it will make you to keep tampering with that amount you kept as savings since you don't have any back up funds to attend to emergency situations. It is true that a lot of investors don't keep emergency funds because they have no idea of it, but any determined investor will always make provision for funds that will assist them while they are investing, and they will also know the set back that comes along when you are investing and taking part of your holdings to sort your sudden needs. Emergency funds should be kept in Fiats so that it can easily be accessible whenever you need it for use while your hodlings in bitcoins are very much intact without being tampered, instead you invest more while hoping to get a big investment.

Many people fail along the way of holding their Bitcoin for the long term and start selling at a loss not because of anything else, but because they don't have emergency funds. This is due to the lack of knowledge about how important it is to save emergency funds. In fact, even when I started investing in Bitcoin seriously, I didn't have an emergency fund account, and that affected me a little. It made me sell a portion of my Bitcoin when the price was down. Just imagine if I had an emergency fund, I wouldn't have sold my Bitcoin at a loss during that period.Seriously, emergency funds are very important, and every investor needs to have one aside, just in case of any future emergencies. Yes, emergency funds are supposed to be in fiat currency, but if someone chooses to save it in stablecoins, I think it's not a big problem. Saving in stablecoins can work too.

Emergency fund is such an important thing, without which an investment cannot be sustained for a long time. But this is something that an investor may not realize at first, when they start investing, they do not pay much attention to their financial affairs, or prepare for unexpected situations.
So when they face an emergency situation, they are bound to sell their holdings. Emergency fund must be kept in stablecoins. In fact, selling Bitcoin means losing a good future opportunity and facing losses.
It is now a common thing that an emergency fund is very necessary for everyone in life, but among most investors, there is a lack of a basic plan such as not having an emergency fund. And this is why most investors cannot achieve success from Bitcoin investment. So you need to know these important things, investments do not become successful due to small mistakes. And in that case, not having an emergency fund ready is never a small mistake, but rather it's a very important one.