Re: Buy the DIP, and HODL!

People form emergency funds when they see that a bad situation will arise. Because in the present time, people do not want to expose their investments to any danger, so they give the most importance to prudent income and emergency funds and follow the DCA method every week. As a result of regular Bitcoin purchases, they are ready to earn more financially so that they can make more money with Bitcoin investments. An investor never neglects his investment, because Bitcoin investment is long-term, so it is most important to form an emergency fund to manage it.

Speaking of emergency funds, what's the best way to make sure I don't spend my Bitcoin prematurely?

My idea is to diversify my savings. I shouldn't invest all my money into Bitcoin. I can put some funds into other profitable investments that aren't as strictly a "hold" as BTC. If I use this strategy, I might not need a dedicated emergency fund because I'll have other readily available assets. This means I can use these other funds instead of touching my Bitcoin.

I get where you’re coming from about diversifying, but from my own experience in 2025 that still doesn’t replace a real emergency fund. Other ‘profitable’ assets can also drop or get locked up right when you need them most. I keep a small cash emergency fund separate so I’m never forced to sell my Bitcoin at a bad time. It’s boring, but it works.

Emergency funds are indeed better if they are in cash and not invested in any assets. Investing emergency funds in certain assets does have the potential to generate profits. However, doing so is still very risky. So, the bottom line is that emergency funds remain emergency funds and should not be used for any other assets or for anything else. Emergency funds are used when we are experiencing an emergency. So, the point is, don't play around with emergency funds, even if it's for positive purposes, such as investing. Let emergency funds settle, and if possible, we should continue to increase them little by little to cover the value eroded by inflation. It's undeniable that inflation will continue to eat away at our money. Therefore, we must continue to increase our emergency funds to prevent their value from decreasing.