That's it, misunderstanding these funds and or misquoting them can be very misleading as one prepares to start an investment journey or even to a newbie. In as much as it's discretionary, we should understand that it hold alot as determining our Bitcoin investment journey. Investors must know that building up emergency funds alongside as we journey through our investment process is very necessary because it's serves as a bedrock and a sustainer of our Bitcoin holdings. Imagine an investor without an emergency funds or a reserve funds, what becomes of his investments when pay slip seizes, or when bills increases or piles up, this simply means that portions of the investment will be taking away against the initial plan of holding for long.
I see it clearly that an investor can't have a successful or super cool investment journey without these two back up funds(emergency and reserve funds). We must carry out proper allocation of funds by ensuring to build up these funds alongside the accumulation process to ensure we don't suffer and panic to sell too often. The proper knowledge of these funds and it's proper application means a whole lot of live to our present and future investment
I think it is best to divide our funds into 3 parts. For example, if a person divides their funds into 3 parts, such as cash, reserve, emergency, then it will be very good for them. For example, if there is a small financial crisis during the investment, then you can take money from cash to deal with your financial crisis. If you lose your job, etc., if there is a crisis that you have to face. Where you cannot deal with the amount of money you had in cash, you can take money from the reserve rathabil to deal with your financial crisis. Emergency fund If you do not have any money, but only an emergency fund, then you can take money from the emergency fund to protect your holdings.
How much money to keep in emergency fund cash and reserve fund should be completely dependent on the financial situation of a person. If a person does not prepare it based on his financial situation, then after a while it may be a problem