I think everyone should do a lot of study on this before investing.
It has been emphasis here severally that you don't need to study much about bitcoin investment before getting started besides investing doesn't require deep knowledge before you can accumulating Bitcoin with the little you know about bitcoin investment you can get started if you have your discretionary income ready and then learn more along the process, sometimes trying to know all about bitcoin investment before getting started might lead to procastination of not even getting started before you realize your self you might use up your discretionary income which you would have to get started with for other unnecessary purposes, so getting started when the opportunity is there is very unique.
Is this applicable to everyone? Here we are talking about how poor people can invest in Bitcoin without having to spend their emergency funds so that they do not lose their Bitcoin easily.
A wealthy person can save their earned money in a few steps, while a poor person cannot, so he has to consider many aspects when investing. For example, if a person's monthly savings amount is $100, he can invest $100 in this case, he has to keep an eye on the emergency fund.
I just wanted to point out that he should never invest the entire $100 in Bitcoin because in case he needs some emergency money, he may not be able to collect money from any other source and have to convert Bitcoin into fiat currency, then he may not get the value obtained from Bitcoin.
Therefore, he should invest five, ten, or 15% of that $100 in Bitcoin and keep the rest invested in local currency or gold as an emergency fund so that he can use it when needed.
In an emergency, are you sure of paying with gold? Saving your emergency funds is not a tactical approach...a clearer manner, saving it in fiat remains the only option.
I agree that the main idea of emergency funds is to have them in cash - mostly due to concerns of liquidity, so it is a bit of a distraction to suggest gold as a good place for emergency funds.. even if gold might be some choice that works for some guys who are able to figure out gold's liquidity. .but it is not a very common option that can cause some confusion for guys to be referring to gold as if it is liquid and/or even practical for many folks. when there may well ONLY be a few places around the world where it is easy to exchange gold and/or to transact in it, so for example to convert it into local currency and/or to pay rent (and/or other bills with it)...
Emergencies don't give notice before they hit. Investing in bitcoin is basically a discretionary income based venture. If anyone thinks that investing aggressively is by investing all your discretionary income, your energy my all be lost when nature demands a payback
Well to the extent that you are suggesting that a guy may well need to have various back up funds (that likely includes emergency funds) in place prior to his being able to be as aggressive as he is able to be, meaning to use 100% of his discretionary income to invest into bitcoin, I agree with you, yet you seem to also be suggesting that every paycheck, emergency funds have to come out of that, which does not tend to be true, since once an emergency fund is build up (or even extra backup funds are build up), those funds do not need to continue to be built up from discretionary income every pay period, and at that point 100% of the discretionary income could be used to buy bitcoin without necessarily going overboard with the investment technique.
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Surely investing from emergency fund is not the right way to go about it, but I would like to say something regarding this fact and see if it works. sometimes an investor may not have enough money in his discretionary fund for the week maybe due to the level of expenses for the week, but since he has enough money in his emergency fund, he can choose to take from the emergency since there's no emergency alerm in that intial time to replace it back, probably before it could get to the normal time when he's supposed to invest in bitcoin by then things must have been figured out. I know this would be a little bit tough because he would have to return the money which he took from the emergency fund and this can probably affect him in the following week as he will be looking for a way to get that certain amount which he set to go with, of which this seems like a play to me, this is why is advised to make a proper planning before diving into bitcoin investment to avoid playing around the market.
Guys can do whatever they like, and so it could take a bit of time to build up an emergency fund that is at least 3 months of expenses, so while the emergency fund is being built up there can be shortages of cash in which the income does not cover all of the expenses, and if the emergency fund is the only money available (besides the bitcoin investment) then of course, the emergency funds would be spent from before spending from the bitcoin.
Ideally, a person ends up building back up funds beyond the emergency funds, which we tend to refer to as reserve funds, and reserve funds have more flexibility. Sure, reserve funds can be used for emergencies, but they also can be used for a variety of expected expenses and/or later investments.
I frequently like to consider that the emergency funds are the last source of funds that a guy has available before he has to tap into his bitcoin, and we are trying to avoid tapping into our bitcoin except for at a time that is completely of our own choosing, so if we had already built up our emergency funds (to 3 months of expenses) and then maybe we have another 2-6 weeks worth of expenses that are in various categories of reserve funds, once we run out of reserve funds, the we likely are going to realize that we are not in a good place because the next thing that we want (or need) is going to have to come from our emergency funds if we do not get paid before the time that we want or need it, so in that sense it could be problematic for us to be tapping into our emergency funds for non-emergencies, yet the judgement is ultimately in our hands regarding how to deal with matters in which we might not have any other funds besides our emergency funds and our bitcoin, and if we may or may not know how many days it is before we receive our next paycheck.. and whether it might be worth it to tap in to our emergency funds for some kind of a temporary expense, perhaps based on an expectation that our paycheck is going to be sufficiently large enough to cover the emergency fund amount that we had tapped into.