I think you have very little idea about fund management. In fact, neither emergency fund nor reserve fund is formed to buy Bitcoin whatever its DIP or not. And those who follow the DCA method and buy Bitcoin for a long term with discretionary income do not worry about the fluctuation of Bitcoin price. They only buy Bitcoin regularly. Bitcoin is for long-term investment and it is important to form a emergency fund and reserve fund because many types of financial problems can arise in daily life. If those financial problems cannot be solved, then it will not be possible to invest for a long time. Then it will be seen that Bitcoin may have to be sold to solve the financial problems. As a result, he will not get the profit that he would have gained after long-term investing.
Now it is important to know when and how to use the reserve fund and emergency funds. Suppose a person is investing regularly and suddenly he faces a financial problem. Then he will first try to solve the problem with the money he has in his hand, if that is not possible, then he will take money from the reserve fund and solve that financial problem. Now, if the financial problem is very big, like a medical treatment that requires a lot of money, then if he cannot solve it with the money from the reserve fund, then he will take money from the emergency fund and after his problem is solved, he will bring the reserve fund and the emergency fund back to their previous position by depositing the money there.Not only this, it was found that suddenly the person's income source stopped, the job was lost, then if he cannot find a job very quickly, then after his reserve fund runs out, he will be forced to take money from the emergency fund to meet his daily living expenses. If it happens that he is unable to arrange a new income for many months and his emergency fund is also exhausted, then he will sell Bitcoin as a last resort. Another important thing to keep in mind is that emergency funds and reserve funds should never be used to buy Bitcoin whether price drop or not. Always buy Bitcoin with discretionary income.
I think a lot of people underestimate how important it is to separate emergency and reserve funds from Bitcoin buying. If you blur the lines, you end up in a situation where the first real-life problem forces you to sell Bitcoin at the wrong time, which defeats the whole purpose of long-term investing.
The way you explained the order of using cash on hand, then reserve, and only tapping the emergency fund for very serious issues makes a lot of sense. It shows that having those layers in place is what actually gives you the freedom to hold Bitcoin without panic. At the end of the day, discretionary income is the only money that should go into Bitcoin, because that’s the money you can truly afford to let sit and grow for years.
From the beginning of buying Bitcoin an investor should consider the floating cash and financial management issues from the emergency fund as important. Giving this management line a separate importance to continue on a long journey shows how careful you are about Bitcoin. Financial management should be arranged in separate tubes. The size of the tubes depends on your financial capacity.
The need for an emergency fund will be when it surrounds you and you are going to be financially devastated. Before that, many investors may be flexible about its importance. Apart from serious issues you should try to meet those urgent needs through floating funds. Among the things to panic about while investing are the price drop and sudden emergency needs. It may be the loss of a job or a reduction in income source or a serious health risk.
Bitcoin stack made through discretionary income that is accumulation Bitcoin year after year without any financial crisis or fear. To maintain and contiue financial liquidity.