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.
Any type of investment is risky. You said that if you invest in another sector without keeping an emergency fund and in an emergency situation you will solve the problem by taking money from there, you will not have to sell Bitcoin.....
Personally, you should keep enough money that could pay your bills/monthly expenses, then the rest you invest and HODL in Bitcoin without stress.
But IF the price DIPs under or near the 200-Weekly SMA, and IF you don't have any responsibilities except to look out for yourself, THEN you probably should buy Bitcoin with 90% of what's in your savings account.
I think he should test the worst scenario on him, if bitcoin dumps 50% tomorrow and his car broke the same day and his mechanic sends him a 5 minute audio message on his WhatsApp, would he be able to cover those expenses without selling his bitcoins, if he can then I guess he have enough emergency funds and he don't have to worry about how much emergency funds I needed, because the importance of emergency funds is one thing and that we all agree on, but how much we need is what I have shared my ideas on.
Life is so unpredictable and full of wrong turns, but we should manage our bitcoin investments in better ways, if we are easily convinced by the market pumps then we should move our funds to cold wallets where we would think 10 times before moving them back to exchanges for booking 100$ of profit.