The reason and advantages of an emergency funds cannot be underemphasize. Knowing how volatile Bitcoin is it becomes a healthy decision to keep up with probable ideas that will tend to make the investment profitable. Emergency has been part of life and planning ahead has been the best thing to do without thinking twice. Ordinarily, every day businesses or some entrepreneurs has failed because of getting loss thinking their business is flourishing without keeping backup funds for the business. The case is the same for Bitcoin even if it happens in different manner but at the end they all serve the same purpose which is to keep the investment healthy and growing stronger than before or just stable.
To individuals who are into business or other forms of investment, it is important to have more than one stream of income in the case one doesn’t turn out as expected, you’ll have other backbone to rely on, getting knowledge of emergency fund as a business man or a 9-5 salary earner is very important in the cases of emergency not just when it applies to Bitcoin investors.
But to newbies who probably has Bitcoin as their first known investment, not having an emergency or backup fund shouldn’t be a reason to not starting Bitcoin investment already. In as much as you’re willing to learn, starting accumulating already and simultaneously learning about Bitcoin and sorting backup funds and/or emergency fund should be a nice approach, all you need for a start is being able to sort out your discretionary fund and knowing how to buy and store your and store your Bitcoin. Limiting oneself from investing because of the absence of emergency fund isn’t really ideal from my perspective.
I largely agree with your statement to an extent, having different streams of income is good, but again as a new investor who’s just getting started with bitcoin investment, you must not wait until your have different streams of income before you can start investing in bitcoin ad all you need is to figure out a discretionary income to start your bitcoin investment. And even if you wish to diversify at some point in your investment, it is important to have focused on accumulating bitcoin with your discretionary income and reach your investment target, and build a healthy portfolio before thinking of diversifying into investments of having multiple streams of income so that you won’t have divided attention with your bitcoin investment because the moment one start having a divided attention they are liable to fumble with their investment goal or target. After reaching your accumulation target or perhaps over accumulation then you can easily diversify into other investments and not when you’re still in accumulation stage.
It is better to have a little back up fund than not having at all, So yeah individuals can decide how much back up funds they might be needing to start bitcoin investment. Not having the emergency funds readily available shouldn’t be a barrier for not starting bitcoin investment as one can get started with a discretionary income and along the line be building an emergency funds. Most times you can decide how much of your discretionary income you wish to allocate towards buying bitcoin and how much of it you will allocate towards building the emergency funds .
