There are many people who decide to buy Bitcoin with emergency funds in this way, there are many mistakes in their thinking, they decide to buy Bitcoin with emergency funds, but they do not even think that an emergency situation can arise at any time, when they need this fund. Buying Bitcoin at the dip price is definitely good and profitable, but for that, we should never remove the safety fund for this. Because as much as you are thinking of buying Bitcoin at the dip price with emergency funds in the hope of making a profit, when faced with a real situation, you will likely lose more than that. Therefore, you should never buy Bitcoin with more money than you can afford, especially buying Bitcoin with a specific fund is never reasonable. Keeping the DCA consistent, if you want to buy Bitcoin at the dip price, then create a separate budget for it as a reserve fund, this is the right decision.
Yes, emergency funds are one of the foundations for our investment in bitcoin to run smoothly. So if for example the emergency funds are also accumulated into bitcoin, it is the same as destroying a foundation that is intended for the success of the investment itself. That is why at that point investors must be wiser in managing their finances, do not let it be just because they are tempted to see the price drop, the emergency fund is used. Of course, this is not the right choice, in fact it can interfere with the smoothness of our investment. So as you said, that we are better off consistently doing DCA and not taking unnecessary risks.
Maybe buying bitcoin when it drops can also be done, but on the condition that we still have to use cold money and it would be even better if we already have enough bitcoin, or have almost reached our accumulation goal. If so, I also agree that buying bitcoin when it drops can be done. So don't let our bitcoin portfolio not reach 20% yet be tempted to take big risks by buying bitcoin when it drops using emergency money. So don't worry and don't panic, because we are investors. Because if we talk about profit with DCA consistently, we have the potential to get a lot of profit in bitcoin. So never get out of our investment path and our intentions from the start.
People often make wrong decisions under stress, which is why wise people always say that one wrong decision can be a lifelong cry. Similarly, those who think that if the price of Bitcoin decreases, they will buy Bitcoin from their emergency fund are also making the wrong decision. Emergency funds are not for investment, but for solving your problems quickly without selling your investment if you ever face any danger after investing.
If someone wants to continue investing from their emergency fund, then they will have to face many types of pressure. For example, if for some reason they get sick and need their money immediately, then they may have to sell their investment. This can create a conflict of interest towards the investment. In the case of investment, buying investments with emergency funds will never be a wise thing to do.