While every investors does need an emergency fund available for obvious reasons, you don't have to save up for emergency before you start investing, you can start with your investment first and then start saving for emergency situations later or you can do them simultaneously, and both funds should come from your discretionary funds so as to not disturb your necessary and basic expenses.
Emergency funds are like a fail-safe that helps to ensure your investment isn't disturbed during accumulation, it also makes provisions for situations like you losing your job, it helps keep an investor going until they secure another job and get their income flowing again all while keeping their investment intact.
I'm sure there are situations where investors had to sell the bitcoin stash early to take care of emergencies, it could be an accident and your insurance isn't coming early enough or it's not able to cover your expenses, it could also be a serious health condition that requires alot of money to treat, your emergency income accounts for and helps take care of these situations.
In this case, people's choices may vary. Some prefer to set up an emergency fund before they invest, but there are also those who immediately choose to invest and save up for their emergency fund while at it. However, this should not be an obstacle for someone to start investing in Bitcoin, because they can also invest in Bitcoin even before having an emergency fund. But they need to create an emergency fund as soon as possible because they just don't know when the situation will become unfavorable to them—having an emergency fund will greatly help them face unexpected situations without having to sell bitcoin at the wrong time.
An investor without an emergency and backup fund will find it very difficult to invest for a long-term, therefore it is important to have your emergency funds, not necessarily very huge amount in as much as it can meet up your needs when the need arises for it, its an extra fund, which you need to save within 3-4 months so that it can save your investment from being sold off before the time that you wish to sell it within your long-term journey.
Make me understand something here, are you saying to save up for 3-4 months before starting to invest?? Or are you saying to only save up to 3-4 months worth of emergency funds at a time??
personally, i think that the approach one adopts in making provision for an emergency fund should be one that is finance friendly such that you don't delay investing in bitcoin just because you want to make provision for your emergency fund. remember that the main thing here is that you are
investing in bitcoin and the emergency fund is just what helps you stay invested for the long term. having this understanding helps you to set priority right such that your attention focuses more on building your bitcoin stack above just setting up an emergency fund.
using the first three months to build just an emergency fund is unnecessary but there are better approach of going about it. for instance, for the first five months, you can discipline yourself to use 60% of your earning for your basic needs, 20% for your emergency fund and the remaining 20% for bitcoin investment. for that period of five month, things might go a bit slow for your investment but since you know that you are making a sacrifice for what will eventually help you in the long term, then you should be ready to follow up your plan without being worried of your short term difficulty. at the expiration of that period, you know that everything about your emergency fund is well sorted out and the 20% can then be added to either the allocation for your bitcoin investment or your expenses. again, the way you decide to split your earning is going to be totally up to you to decide but the main point here is that building an emergency fund can still go hand in hand with building your bitcoin stack.
another thing to take note of is that an emergency is not something we know how much it will require of us to get it fixed. there is never a guarantee that what you have kept as your emergency fund as a newbie investor will be enough to sort out the uncertainty that might unfold even though it is possible that you might eventually make use of it. but even at that, it is better to set a reasonable fund aside that can keep you moving rather than expose yourself to the risk of uncertainty.
from the little period i have stayed invested, i have had a first-hand experience when my income source seems to slow down a bit and the urge to take out a portion of my holding creeps in, fortunate for me, i have a working plan that helps me stay invested through whatever short-term storm that arises. failing to set out a good emergency plan or funds on ground is a clear indication that you don't value the safety and longevity of your asset.
You are correct however I will like to make something clear so it won't be confusing to some set of people or make them do something that will affect them later in the future especially the newbies now you said one can discipline his self to use 60% of his earning for his basic needs, 20% for his emergency fund and the remaining 20% for his bitcoin investment now this advice you gave here can lead some people into financial problem because is not clear the reason why I said so is that the only money we should use for building our Bitcoin investment and our emergency funds is our Discretionary income and not money meant for our basic needs if you want to discipline yourself in building your Bitcoin and emergency funds together use only your Discretionary income to do that, if your Discretionary income is 20 percent of your income then divide it 10 percent for your Bitcoin investment and 10 percent for your emergency funds, I'm making it clear here so some newbies will not make the mistake of using the money meant for there basic needs to build Bitcoin and emergency funds all in the name of wanting to discipline there self's because if they do they will surely get into a financial problem that will make them dip hands into there Bitcoin and emergency funds when the time is not right there by destabilizing them.