Re: Buy Buy Buy or Sell Sell Sell?

If an investor cannot keep an emergency fund or a reserve fund (backup fund), then he will put his investment at risk. Because an emergency fund is kept for danger. If an investor gets into danger while running his investment and there is no one to help him. Then if he has to sell the investment to get rid of that danger, then he will have no end of regrets. You can face many obstacles and dangers while investing. Therefore, an emergency fund or a reserve fund is necessary to deal with any emergency situation.

Danger never comes in a hurry. If you keep an emergency fund, it means that you are going to invest risk-free. Those who do not keep an emergency fund or a reserve fund often lose their investment after being caught in a storm.

Having an emergency fund is indeed a must for everyone, whether they are investing or not. But when investing in bitcoin, of course, an emergency fund can be likened to a shield. Because its use is to cover emergency needs when the funds allocated for needs have run out. So in such conditions, emergency funds can be used. But if you assume that when investing and having an emergency fund will be free from all risks, I think that assumption is not quite right. Because you need to remember that having an emergency fund does not mean eliminating all risks, but rather to be able to minimize the risk so that it is not too big. Because basically the risk can never be completely eliminated when investing in any asset, including bitcoin. So don't misunderstand the use of an emergency fund, because if you assume that all risks are gone when you have an emergency fund, of course that is very wrong. Although bitcoin is indeed a fairly safe investment asset, investing in bitcoin still has risks, although not as big as other assets.

It's good we have any emergency fund because unexpected things happened unannounced instead of running up and down looking for where to get money you just deep hand into your emergency fund and sort out your issues without the next man even knowing but in bitcoin investment it shouldn't be a thing of must before you get started with your bitcoin investment, you can still start with your bitcoin investment if you have a left over income (Discretionary income) you are very free start buying bitcoin and sort your emergency fund along the line.

Guideline for what you need to do to make Bitcoin investment long-term is that you set your savings goals in such a way that they are achieved through your discretionary income and it is a very simple consideration. Here you should avoid the complexity and follow the right method such as following the DCA method correctly and keeping it continuous. And in between set the amount of floating cash fund or emergency fund amount with you in such a way that you can keep yourself more disciplined in terms of accumulation.

I have this idea about some investors who may be careless about maintaining discipline in their investments because their emergency fund amount is initially very low or they may not have any amount available. They are worried about the amount of discretionary income to invest in Bitcoin because that amount is very low.

To maintain investment consistency, I recommend a strategy that is very realistic for an investor to follow, such as if your discretionary income is 5% of your total income, then it can be considered very simple to allocate 4% of it to Bitcoin accumulation and the remaining 1% to an emergency fund. Therefore you can cycle for four years but even if it is not a decent holding for you, it will become a great habit to hold Bitcoin and will encourage you to cycle more.