Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Creeper0
on 22/06/2025, 15:47:16 UTC
I don't think it's understandable for an investor to sell part of his Bitcoin holdings because he finds himself in a state of crisis, then what happened to his emergency funds. This where the use of Emergency funds falls in or plays a vital role for an investor in this kind of dire situation. Instead of tampering with his portfolio to sustain himself during the period of this conflict at hand, rather he should make use of his Emergency funds to take care of  himself since the conflict/war in his area have stopped him from accessing a job that will earn him money for the time being. It is only an investor that haven't setup his emergency funds at the time this kind of emergency situation struck that will be force to tamper with his portfolio. This is why it is very important for an investor to start building his emergency funds simultaneously with his Bitcoin investment using his discretional income once it's ready and available. Emergency funds are setup to protect our Bitcoin investments from any unforseen occurrence that may arise in the future.
I think an investor should plan his backup funds (emergency fund, reserve fund, cash flow and required funds) in such a way that he can handle an emergency for about 7-8 months. I am not saying that it is mandatory to keep such a huge amount of money in the backup fund. It may be mandatory to keep only 3 months of expenses in the emergency fund, but we should keep as much cash flow and reserve fund in our plan as possible. The combined amount of cash flow and reserve fund can be like 5-6 months of expenses. I think if someone can plan such a plan with a backup fund, then he may not have to touch his investment fund. Because most of the times emergencies do not last that long.