Investing your emergency funds looks a bit new to me, ordinarily i was thinking it was cash reserve you can fall back on hence there is real emergency, but investing in gold that is still prone to heavy market instability shouldn't be seen as emergency funds, in my own view, if it gets to the point you would have to put your emergency funds in gold reserve as an investment, why not just empty everything into your bitcoin investment at once since it's already looking like the emergency funds can be invested.
Why are you calling it emergency funds when you know you still going to invest in money in other things? Either gold or other investment, don’t invest your emergency funds in them, because if their is an emergency case, you are going to regret why you decided to invest the money which is suppose to be used in taking care of any emergency when the need arises. If you decide to invest your emergency funds in bitcoin or other coins, when you need the money, then you might be selling at lose because you won’t really have choice at that moment than to sell even if you are in big loss. My emergency funds are always in my local currency, and it’s always in my bank account.
I made a comment regarding diversification few days ago which I have quoted below.
Well I am not sure for others but for me I think investors especially new investors should focus on Bitcoin investment first and keep accumulating as much as they can because managing multiple investment requires a certain level of experience and financial stability. So before diversifying you should ensure that your investment goals are clear and won't be compromised. If it will be affected then it's better to prioritize accumulating more Bitcoin until you have achieved what you are set out to do or at least reach a certain level that won't be affect your goals.
No need to rush into diversifying, there is no deadline. You can always diversify when it's safer.
Some people fail to understand that emergency funds are meant for emergency situations and if they must diversify they can't rely on their emergency funds else they will compromise all their investments. Managing two investment even with emergency funds is not so easy then think of managing them without any emergency funds.
Putting your emergency funds into Gold is not ideal and can't be regarded as emergency fund anymore rather another form of investment on it own. Doing so will definitely affect your investment when emergency situations come it make managing it very difficult and you will ending touching part of your investment which will lead to your investment plan being compromised and your investment goals not achieved.
Many of us likely know that best practices is to keep emergency funds in your local currency, yet there are folks who will keep emergency funds in dollars rather than their local currency or they might keep emergency funds in some other form that they consider to be liquid, and sure gold might be o.k. for part of the emergency funds.. if maybe you might spend from your gold before spending from your bitcoin and sure gold could be somewhat liquid depending on where it is held.. yet at the same time, there could end up being downward volatility with gold when you need the funds, yet I don't consider it completely outrageous to keep some emergency funds in gold.. and ultimately guys have to decide these kinds of things, including that there are some guys who fail to create and maintain any emergency fund, so then by default their emergency funds end up being their bitcoin, which surely could end up causing them to get partially or completely wrecked.. so they are taking decently high chances when they keep their emergency funds in any currency other than their local currency.. yet even with some local currencies, guys do not want to keep more than a week or two in their local currency if they currency does not tend to hold its value very well..
We often do a lot of work without preplanning, we do it without thinking about what will happen 2/3/4 weeks, months, years after doing the work? We work without thinking about what can happen which later makes us face difficult problems.
Most of the time we invest our emergency fund in the wrong place due to which we have to pay later.
We do not understand which type of collection should be invested in which sector.
I think everyone should do a lot of study on this before investing.
As long as you have a means of income and after you have taken out your monthly expenses and needs out from your income, if you still have leftover funds, you can use that to invest into bitcoin because that's your discretionary income which some people spend on whatever they love. Some use this funds to drink, club, go to the bitcoin e.t.c. It's wise to use such funds for bitcoin investment and keep on buying regularly weekly, consistently and persistently for 4-10 years and above.
No matter as little as $10 and above, as long as you can hodli and don't sell, you will be surprised at the quantity of bitcoin that you would have accumulated overtime. There is power in little gathering because it will pile up to a great height beyond your imagination. Therefore, there's no need of waiting to learn a lot about bitcoin when you can get started and learn along the line as you are investing with DCA because you are on a long-term journey and have all the time to learn whatever you want to know about bitcoin.
Setting up your emergency funds is also important as you have started your bitcoin investment so that you don't sell your bitcoin when an unforeseen circumstance arises. This is why you need to set up an emergency of at least three months of your income. You can divide your discretionary income into two part, DCA weekly with one part and use the other part to be building your emergency funds till it gets to three months of your income. Cash flow management is important and also looking for other means to increase your income will increase your financial strength so that you can increase the amount that you are using to DCA in order for you to reach your bitcoin target faster.
Bitcoin investment is one of the best to throw some value into for the future because bitcoin is still in her early days and the price increases overtime, so don't miss out this opportunity to accumulate bitcoin for your future. What will it profit you to gain almost all the bitcoin knowledge and nothing to show for it.