I would really love to hear what y’ll think about this, do you separate your funds like this? Have you ever made the mistake of using your emergency savings to invest in Bitcoin? Let us learn from each other. Drop your thoughts.
To sustain a Bitcoin investment, you definitely need both discretionary income and emergency funds. Because you are not following the Bitcoin investment DCA method for a short period of time, it is a long-term package that will protect your Bitcoin investment so that you do not face danger for a long time.
In daily life, dangers are surrounding people, so the emergency fund will guard your investment every moment. Because the more your income increases, the more Bitcoin you can collect according to the DCA method.
I agree with the two recommendations you made for long term Bitcoin investment sustainability. Another thing I would like to add is that when you implement your own strategy for long term management it will be consistent with your daily life and expenses how you organize your investments and grow your Bitcoin holdings. In the long term effort you will encounter many problems and sometimes you may get upset and feel pressured to withdraw your valuable holdings. What should be the amount of emergency fund, how many months it is safe for you and your investments, your income and discretionary funds these are important things to decide for yourself.
In some instance and depending on the financial solvency and less solvency of the investors there is an opinion in favor of keeping three months or six months or even one year in an emergency fund but it is advisable to be against holding excess amounts of fiat currency such as three months or an additional three months.