I don't completely agree with your opinion about having an emergency fund before investing in Bitcoin. For new and relatively low-income people interested in Bitcoin investment, would you advise them to collect an emergency fund or invest in Bitcoin even after having basic knowledge? Of .
None of us should ignore the emergency fund. Although a person can have an emergency fund without buying investments, this habit will help him to be disciplined. He wants to buy BTC from his emergency fund. Because it takes 4-10 years to build a decent Bitcoin stash. During this time, he can start his emergency fund after buying BTC.
However, it is necessary to have an emergency fund after buying the investment. If a person spends 80% of his discretionary income on his daily living expenses, then from the remaining 20%, he should invest 10% and 10% for emergency fund. It is a misconception that you do not have to have an emergency fund. If you have discretionary income and do not have luxury expenses, then it is better to insist on building an emergency fund along with buying BTC. You should keep an amount equivalent to 3 months of your salary in your emergency fund.
However, if you feel pressured to buy BTC while you have an emergency fund, the best decision would be to immediately close the emergency fund and focus on buying Bitcoin.
I think you have little knowledge or misconceptions about Bitcoin investment, discretionary income and fund management, which is why you have given some confusing statements. The idea of investing in Bitcoin is very simple, the longer you invest, the more likely you are to make a profit. Investing for a long time means less risk. Now, to be able to invest for a long time, you must have discretionary income. The amount of money left over after a person's monthly expenses is their discretionary income. When investing in Bitcoin for a long time, various types of financial problems may arise in the future. To solve all those financial problems, some backup funds need to be saved in advance. These are basically divided into reserve funds and emergency funds. The emergency fund is the part that will be used as a last resort before any minor financial problems are solved by taking money from the reserve fund.
An example of how a person should invest is if someone's monthly income is $1,000, out of which all his basic expenses such as rent, food, electricity, and drinking water, including all transportation expenses, are $500. the remaining $500 as discretionary income.He will invest $300 out of $500 as a discretionary income in Bitcoin, keep the remaining $100 as an emergency fund, and use the remaining $100 for his personal expenses. When he has three months expenses worth of money in his emergency fund, he will invest that money in a reserve fund or more aggressively in Bitcoin. Then in the future, if he needs a lot of money for some kind of emergency, he will first see if the problem can be solved from his reserve Fund . If the amount of money is much more, then he may not be able to solve it from the Reserve Fund alone, then he will use the Emergency Fund. In this way, he will be able to solve the financial problems without having to sell the Bitcoin he holds and take money from his backup fund.