Now coming to why you should form an emergency fund and what is its use, basically so that your investment is not irregular, that is why many investors form an emergency fund. The use of an emergency fund is when you have a financial crisis, but your investment may be irregular, so that an investor's Bitcoin investment is not irregular during a financial crisis, that is why those investors form an emergency fund with their own extra money and use it later.
Once an emergency fund is used, when the financial situation of the person is normal, then the amount of money that he took from the emergency fund and invested in Bitcoin can be added back to the emergency fund. This way, every investor will not have the possibility of irregular investment. Since I have used an emergency fund, I know that this is a really effective strategy for investing in Bitcoin consistently.
In fact, even if you don't invest in Bitcoin, it's important to create an emergency fund. Emergency funds are created for urgent needs, you may get sick at any moment and you will need money if you are sick, so if you have emergency funds it will not affect your investment. Maybe some investors reserve emergency funds to maintain regular investments, but it seems most investors reserve emergency funds for urgent needs. I personally reserve emergency funds for urgent needs, I do not reserve emergency funds to maintain continuity in investment. I will never buy bitcoins using emergency funds, because investing consistently in bitcoins is not mandatory.
There's one thing most people don't understand whether you are investing in Bitcoin or not you need to have an emergency funds, having an emergency funds is very important in our life, my dad had an emergency funds when I was growing up and till date I still think he's emergency funds is still intact and this emergency funds was used in a lot of situation especially when we are sick he dip hands into the emergency funds to pay for our hospital bills and this has made him not to take loan till date so one of the advantage of having an emergency funds is to prevent you from taking loan, taking loan we always remove a lot of money from you because when you are paying back you pay with interest so whether you are investing on bitcoin or not you are supposed to have an emergency funds because it will save you from a lot of stress and panic when you face an emergency situation that needs to be solved with money.
So whether you are ready to take your bitcoin investment serious or not have an emergency funds.