In some cases where you have exhausted your discretionary income for bitcoin investment it's not bad if an investor uses little of his emergency fund to purchase bitcoin and still make a replacement back to your emergency fund when things are alright but emergency fund shouldn't serve the purpose of discretionary income using your emergency in a one time purchase of bitcoin doesn't give you a bad method to invest in bitcoin.
Investing with emergency fund and gambling are the same thing. Because when a person gambles, there is no guarantee that he will not lose his money or make a profit. Just like you have created your emergency fund to protect your investment, if you invest with emergency fund then there is no guarantee that you will not face any kind of financial crisis. If you invest with your emergency fund then how will you deal with unexpected financial disasters. Anything can happen at any time we can never predict the future so it will never be the right decision for us to invest with emergency fund.
If you see a fall in the market and you want to buy aggressively you have money but you do not have it in your hand. You will get that money in your hand after some time or some days. In this case you can invest by taking a loan from someone if you want. But you have to think in advance whether you can repay the loan or not, then you can invest by taking a loan
Borrowing money to invest in Bitcoin is not a wise move at all, in fact it is one of the fastest ways to put yourself in a trap…. Bitcoin is already volatile on its own, it does not need the added pressure of a loan with interest eating into your back.. When you borrow to buy Bitcoin, you’re not only risking your Bitcoin stack, you are also risking your ability to hold through the dips.. Instead of stacking and building calmly, you will always be under pressure to pay back, and that pressure can force you to sell your coins at the worst possible time..
Doing that is simply endangering your Bitcoin stack and everything you are working to build.. The whole essence of Bitcoin investment is patience and discipline, but once you add debt into the mix, you destroy both.. What will then be in your mind is let Bitcoin increase so you can pay off, you will barely thing long term which is the whole reason for investment and if it retraces a little from you entering price, you’ll definitely be pressured and left with a double loss, Bitcoin(which wasn’t meant to be a loss) and a loan still waiting for repayment… To be honest, I am saying this out of experience, because if you ever go down this path, you will never think long term at all…. All your decisions will be short sighted, just trying to cover the loan instead of letting your stack grow…
That is also the reason why we emphasize discretionary income whenever investment is being discussed. Discretionary income simply means the extra cash left after you have taken care of your essential expenses and obligations. It is the money you can truly afford to risk without it shaking your life.. Investing with this type of money gives you freedom to hold long term, while borrowing or using critical funds only exposes you to unnecessary danger…..