I get your point, and yes going all in, can amplify gains during a bull run, but it also exposes you to unnecessary risk. Holding emergency cash isn't about being negative, it's about being prepared. Imagine losing your job or facing a health issue during a bear market if all your money is in Bitcoin, you might be forced to sell at a loss. That’s not strategy,that’s desperation.
Smart investing isn’t just about chasing profits, it is about staying in the game long enough to realize them. Keeping some cash on the side actually protects your Bitcoin stack, because it gives you the freedom to hold through dips instead of panic selling.
So yes bet on Bitcoin’s future, but bet wisely. Risk management is part of the strategy.
Why always assume the worst and lose gains because of it. You are saying two negative things needs to happen all at the same time.
First, the price of everything should fall, so we are in a bear market, AND then we are going to lose our job at the same time. Isn't that really weird that you want to lose possible gains for a back to back possible bad things?
I get ur point man, that he should be more positive about life and all which is good one, but it is not really about wanting those bad things to happen. It’s about managing risk and normal circumstances of life, even with the fact that staying positive is good, sometimes market can flip fast, and sometimes bad news does stack up. I believe what he is just trying to drive in is been prepared in case things go south, not saying they will for sure. It is more like having an umbrella in your bag just in case it rains, not because you’re hoping for rain or something…
I do not agree that it's being "prepared", it is being paranoid after a point. If you really want to, 10% of your portfolio could be USDT, and that way you could have some emergency fund.
I understand where you are coming from, but I think it is still smart to separate that from your emergency fund. For me, I would say once you’ve saved up at least 3-5 months worth of living expenses jst as Ruttoshi said earlier, that should be enough…. After that, then you could rather focus on stacking more BTC….
But the emergency fund itself should stay in something stable and not Bitcoin like you mentioned, for easy accessible, like local fiat or USD, because in a real emergency, you do not want to be stuck selling Bitcoin during a dip or something.. It’s not about fear, it is just about being prepared every though you’re still bullish long term….
It seems to me that each of us should be prepared for a variety of scenarios, even extreme scenarios and losing your job and the bitcoin price falling are not outrageous scenarios at all.
Exactly, thats the point, we just have to be prepared, life is full of uncertainty and anything can happen…
If every investors apply this, I think people would no longer complain about high volatility and asking whether they should sell or not.
Many people are too obsessed when they have money which they don't use and they're also greedy, hence they're trying to maximize the profit they can make by investing as much as possible.
It might be possible for some people who can still able to perform under high pressure, but most people seems not able to do that.
True man, that is exactly why I always talk about separating emergency funds from what you invest. Once your safety net is in place, whatever is left becomes your real investing power. Most people panic because they are overexposed, not because Bitcoin is too volatile. If folks only used true discretionary income, they would handle the swings way better… Thanks for sharing your thoughts though… .