It makes sense to use an emergency fund only when you have no money other than your emergency fund and you are still in an emergency situation. We should not resort to emergency funds at the beginning of a crisis, no matter what kind of crisis it is. If you are laid off from your job or if you or your family member is sick, the first thing to do is to reach for cash flow to cover medical expenses. Then, if you have other funds, take help from them. If those are not enough and you are at the peak of the crisis, then maybe that is the right time to use an emergency fund. Identifying the emergency situation is the most important thing to use an emergency fund. Otherwise, you may end up using only the emergency fund, which is not a good idea.
everyone certainly has different opinions in this matter, but in my opinion, using emergency funds is certainly free to do at any time if for example we are pressed for medical expenses and so on, as long as the most important thing is that we don't sell btc because the function of emergency funds is so that we can hold btc for the long term and so that when we invest in btc it remains comfortable. and it would definitely be better if we could add emergency funds every month or whenever.
The importance of emergency funds should not be underrated in anyway because without it, their is no way your Bitcoin holdings can survive for a very long time without you tempering with it, and we should try to make our emergency funds so big to the level where it can fund our daily lives for the minimum of three months, so that it can withstand any financial trouble that may arise in the future.
Additionally, let's not heed to any temptation of using our emergency funds or part of it to invest in Bitcoin because it's a trap that may derail our bitcoin investment if such thing is not avoided.
Without an emergency fund, it is fatal when investing in anything, including bitcoin, although bitcoin is a good asset to invest in. However, considering the unpredictable price of bitcoin, it is highly discouraged to invest if you do not have emergency funds to meet your needs in the next few months, even emergency funds must be saved every month if you want to invest so it is important to manage good finances.
In many cases, people confidently buy bitcoin by spending all their money because they believe that bitcoin will go up in the near future, but the opposite happens. When something unwanted happens like a disaster or something, you have to sell bitcoin and at the same time bitcoin is also going down, all you get is a loss. So the important point in investing in bitcoin is not to force it too much, don't use lust but invest with a healthy mind so that you can hold bitcoin for the long term without fear when the price goes up and down.