Quote from: I_Anime on Today at 05:03:29 PM

Is very important to able to differentiate between Emergency funds, reserve funds and discretionary.especially when you are into bitcoin investment. They all have their roles to play when comes to investing in bitcoin , emergency funds just like the name implies is to take care of emergency like unexpected expenses, so is not for accumulating or being aggressive whenever there’s a dip that’s where reserves funds comes in , which can literally help to buy the dip while keeping pace with your normal dca method, discretionary income which plays the role of money you can spare for investing, or money you can choose to save but as an bitcoin investor is best for accumulating.

I agree with you, because it is very important for all bitcoin investors, especially newbies investors to differentiate between discretionary income, emergency fund and backup fund so that they won't invest wrongly and end up selling their bitcoin investment at early stage of accumulation in lost. Both Discretionary income, emergency fund and backup have their own different role to play when it comes to bitcoin investment. Now let me break it down to my own best of knowledge, discretionary income is a leftover money after you must have settled your basic needs and expenses either for the week or for month depending on your cashflow, from that your discretionary income you set aside money that you will use to invest in bitcoin, less say your discretionary income is $100 you can decide to invest $50 or $60 in bitcoin and then allocate the rest of fund to your emergency fund and backup fund. Now less come down to emergency fund, emergency fund is that fund you will use in handling all the emergencies that may arise along the line, less take note emergency fund is not to be invested in bitcoin it's only for handling emergencies, I know the thing that always push investors to invest wrongly in bitcoin is when dips occur in bitcoin, some guys will always want to take advantage of the dip no doubt, but not by using your emergency fund to take advantage of dips, because you are endangering your bitcoin investment if you invest your emergency and emergencies arise no emergency fund to handle those emergency. Now less come down to back up fund, backup fund can be use to handle emergencies too if you run out of emergency fund, backup fund is also a fund for buying the dips when they occur.