Consistently doesn’t really have to be a process of buying with huge amounts that is why it is necessary to always have a reserved funds, and emergency and floating funds. This can really help us to dive into the market and enable us to be consistent and aggressive to buy smart.
In all your consistencies and aggressiveness in your purchases, leave your emergency fund out of it, plan your purchases around your discretionary income, manage your cashflow properly so that provisions for your consistent purchases are made without your emergency fund being utilized in the process. This is necessary for your holdings to survive longer. Taking chances with your emergency fund is only endangering your portfolio.
exactly I agree with you on this one no matter how consistent and aggressively an investor want to be in accumulating bitcoin he or she should never use his or her emergency fund to accumulate bitcoin, because using your emergency fund to accumulate bitcoin is a very wrong approach to bitcoin investment and it can endanger your bitcoin investment and make you sell in lost when emergencies arises and there is no emergency fund to handle those emergencies, which is investing mistake, only accumulate bitcoin with your discretionary and avoid been tempted to tap into your emergency fund to accumulate bitcoin aggressively or consistently, for that is the best way to approach bitcoin investment.
Yap, but sometimes you may come across some Bitcoin price that you are less likely to face any difficulty in increasing the holding more aggressively and holding it for the long term but a part of the backup fund can be used. Suppose you have a one year or two year backup fund that is ready for the long-term cycle and if the dips event occurs in between aggressive buying can greatly positive affect the increase in holdings.
Investors can follow a method that they additionally save floating funds with their backup fund to get the dips season and buy more. In that situation, those investors may not need to use the backup fund. Some may consider keeping the backup fund for more than six months. Your investment success may depend on your financial situation. If you have additional funds for more than two years, it may be a lazy fund (Bitcoin stashing could provide further financial advancement) but accumulation Bitcoin in the DCA method every week/month can be more positive.
In conclusion I would recommend that you have a backup fund to invest in Bitcoin for the long term, but the freedom to manage each of your financial capabilities and alternative income and floating cash funds depends solely on your own perspective and ultimately, a fruitful strategy for growing your Bitcoin stash.
You need to create your backup fund or emergency fund depending on your reliable income or stable income. Because if you depend on stable income and do not create your backup fund or emergency fund, you may face some problems. For example, your emergency fund needs to be 3 times your stable income. Because if you lose your job, then you can live on your emergency fund for 3 months. And what kind of backup fund should be based on your stable income. If you have not created your backup fund, before starting to invest, you need to create a backup fund in addition to investing. You need to invest some part of the monthly salary you receive every month and keep some part to create a backup fund or emergency fund. For example, if you have a monthly salary of $ 200, then in that case, if you have a family expense and personal expenses, if you have $ 60 left to invest, you need to keep money for the emergency fund in addition to investing. Try to keep as much backup fund as you think you need. But always try to keep it at least 3 times your stable income.