Quote from: Sim_card on Today at 03:34:53 PM

Quote from: yixichloro2xx on Today at 01:20:47 PM

Your point is valid, maximizing Bitcoin allocation early can accelerate long term gains, but it is also a higher risk approach. The challenge is that without a decent emergency fund, unexpected expenses could force you to sell Bitcoin at an unfavourable price, effectively turning a temporary dip into a real loss.

It's impossible for you to have a decent emergency funds in the beginning of your bitcoin accumulation phase because you need up to a year or two to be able to build up an emergency funds of three months of your income. This is the main reason why it's important to build your emergency funds with the same amount that you are using to DCA for a start til you have built up your emergency funds.

Emergency may come or not, therefore allocating more money to your emergency funds and allow your bitcoin investmet to be two times smaller than your bitcoin investment is wrong because of debasement of fiat currency overtime.

I understand the logic behind focusing on an emergency fund first, but waiting a whole year or two before stacking Bitcoin can cost you valuable entry opportunities. With fiat losing value over time, keeping too much in cash early on means your purchasing power is quietly shrinking........A better way might be to grow both at the same time but not necessarily equally, but in a proportion that gives you quick access to emergency cash while still building your Bitcoin position. This keeps you financially flexible without missing out on potential upside. What matters is finding that balance where you are not overexposed to either risk or sudden expenses or lost Bitcoin buying power.

Quote from: ruykeri on Today at 05:28:33 PM

What I personally think is that if you invest with discretionary income following DCA, you need to have both an emergency fund and a reserve fund. So that if you face any financial problem in the future, you don't have to sell Bitcoin. However, before starting investing, someone thinks in two ways: first create an emergency fund and then start investing or start investing while creating an emergency fund. However, what I think is more beneficial is to create an emergency fund along with investing in BTC. Let's say someone's income is $1000 per month, here his discretionary income is $250, which is about 25% of his income. So if he wants to create an emergency fund for 3 months first, then he has to wait at least 1 year if he wants to deposit his entire discretionary income. If he does not invest in Bitcoin in this one year, then he will miss out on this one year opportunity. So the most correct way i think is that if he wants to invest monthly, then he will invest some part of his discretionary income in Bitcoin and along with he will also continue to form an emergency fund with other part . In this way, he will not lose the opportunity of investing in Bitcoin. And the emergency fund will also be formed.

I get point, If someone waits until they have fully built a 3 month emergency fund before touching Bitcoin, they risk losing a whole year or more of potential low cost accumulation. With Bitcoins volatility, delaying entry can have a significant long term impact on overall returns.
The smarter approach is to split discretionary income between both goals. For example, with $250/month available, allocate a portion to Bitcoin and a portion to the emergency fund simultaneously. That way, you are protecting yourself from unexpected expenses while still building your Bitcoin stack consistently. This dual track strategy keeps you in the game and avoids the trap of having to sell BTC later to cover emergencies.