It is the reason why emergency funds are very important in Bitcoin investment. As Bitcoin investors, we need to have emergency funds in case an emergency arises in the future. This ensures that the investor will not be forced to sell their Bitcoin to solve the problem.One of the main reasons why some people fail to hold their Bitcoin for the long term and end up selling it at a loss is because they do not have emergency funds. If a problem arises and they have no other option, they will definitely sell their Bitcoin to solve the issue. At that period, the price of Bitcoin may be low.This has happened to me before. When I started my Bitcoin investment, I did not have emergency funds set aside. When a problem arose, I had no other option but to sell some portion of my Bitcoin at a loss. It really hurt me.
But in bitcoin investment is very compulsory, because
the profit does not come within a short term rather it takes some couple of years before one can actually get profited.
Profits can come in within a short time, there were people who invested before Trump won and bitcoin surged to 109k, they were in profits and still are, I also bought bitcoin at $74k, I'm in profits as at now too and both scenarios aren't even up to a year old. Profits can come anytime, but as real investors, our goal is not taking short-term profits, else we exhibit trading tendencies, but we are focused on accumulation target, consistency in purchases and a long-term holding period. We are more interested in reaching our accumulation target and if possible a status of over accumulation within our holding period before we can start withdrawing profits in ways that are sustainable at the expiration of our holding period.
Long-term investment plan allows for more profitability and you would surely experience the compounding effect of bitcoin price appreciation on your investment. Consistency and commitment to your accumulation would also see you have much more stashes of bitcoin on the long-run compared to a short-term investor and means more profits for you since the bigger the size of your portfolio, the bigger your profits margin.