Investing in Bitcoin with an emergency funds is a huge mistake of investment and a bad idea. Emergency funds are basically kept for emergency purposes and needs, If we definitely use emergency funds to invest and we probably have a situation where we need to sort out emergency needs, We would have no choice but to use our Bitcoin investments and that will affect us accumulating our Bitcoin holdings. It’s also important we should have reserved funds and floating funds. It’s better to use Reserved funds to invest in bitcoin than use our Emergency funds. It is better to be disciplined in managing our emergency funds instead of using it to invest in Bitcoin. Effectively managing our Portfolio is important and having a good strategy in managing our assets is very crucial in our journey to accumulate for long term.
This should not be done by people since we don't know on when emergency situation came. That's why its better to be prepared than have nothing when they are struggling. Much better if they pause for a while than thinking about using their emergency funds or sell their Bitcoins since with that they could think about better approach when they have enough money to invest again.
I always have huge admiration on Microstrategy since even if they face backlash when Bitcoin dumps they just paused their accumulation and planned everything everything well. Now they are back on track and gaining good momentum with their investment. This is what people should look at and they should not create problem that might give them a bigger problem in future. So having good strategy is really important plus we must know well how to handle our finances since I believe this will help us succeed on our investment on Bitcoin.