Truly, the emergency funds is very vital for our bitcoin investment, the importance of having an emergency funds cannot be overemphasized as it goes a long way to protecting and sustaining our bitcoin investment. But, not having an emergency funds doesn’t mean we can’t own or start an investment in bitcoin, what you need to start or accumulate bitcoin is just a discretionary income. The idea is, as far as you’re accumulating bitcoin and hold for the long term without panicking to sell or selling when it’s not yet appropriate to do so. It’s advisable to get started in accumulating bitcoin first and along the line we can be building up our emergency funds with time, but not having an emergency funds shouldn’t prevent one from investing and accumulating bitcoin when your discretionary income is available.
Just as a sensible income is needed to start investing, 2 more things are needed
1 Basic knowledge about Bitcoin
2 Faith in Bitcoin
There are many investors who are not motivated to invest despite having money. They definitely need to have a good understanding of Bitcoin at the beginning. But in most cases, the picture that is seen is that they get stuck in the middle due to lack of investment knowledge. There are many people who cannot maintain their investment after investing in Bitcoin. The purpose for which they invested is not successful. An investor should definitely give importance to several things while investing in Bitcoin. At the beginning of the investment, it should be seen whether he has the capacity to invest. If he has discretionary income and if he can invest in Bitcoin regularly for a long time, then he can benefit from Bitcoin investment at some stage.
Many people hesitate to invest in Bitcoin not due to a lack of funds, but because they lack a clear understanding of the asset and how to manage their capital over time. Successful investing requires more than money, it demands a plan and the discipline to stick with it. Most newbies often enter the market with excitement, hoping for quick profits, but without grasping Bitcoins volatility and long term nature, they may lose confidence, sell impulsively, or abandon their strategy altogether, undermining their original goals like wealth growth or portfolio diversification.
As by my own take I will say before investing, it is crucial to assess your financial readiness. This means ensuring you have discretionary income, money left after covering essential expenses like rent, food, and taxes. Using funds meant for basic needs can lead to forced selling during emergencies. Consistency is also key in investing steadily over time, regardless of market fluctuations, helps smooth out volatility and builds a stronger position for long term growth.
Discretionary income forms the foundation of sustainable investing. From this pool, you allocate discretionary funds, the portion specifically set aside for Bitcoin. This separation protects your financial stability while allowing you to build a disciplined investment habit. Ultimately, Bitcoin investing isn’t about perfect timing, it is about consistent contributions and informed decisions that compound over time, positioning you to benefit from its resilience and potential.