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.
I cannot proclaim to know, with any precision, at what point guys might start to diversify into assets other than bitcoin and cash, yet it seems to me that if guys had put one year or more of the size of their income (or their expenses) into bitcoin, then presumptively they are simultaneously growing their back up funds too.. and so the growth of both of these (especially the back up funds) would justify putting and/or keeping back up funds into other assets, besides cash.
Overaccumulation stage (such as fuck you status) may well be 10 years of expenses (valued at the 200-WMA) or more, and so it seems unlikely that a guy would need to accumulate up to the heights of that level before it might start to make sense to diversify out of something other than bitcoin and cash.
These are not easy guidelines to try to discuss, since there could be some point that it is not even making sense to keep putting value into bitcoin, even though the guy is also not at point where he can start to sell bitcoin either, especially not time-based sustainable withdrawal.
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 .
Even though you admit that there would be problems to not have enough back up funds (emergency funds), you also seem to be downplaying the idea of back up funds and suggesting that guys merely need bare minimum of back up funds and everything will be o.k... which surely seems like problematic (and risky) thinking to me... If a guy is investing into bitcoin for 4-10 years or beyond, then a lot of things can come up during that time in which income might go down and/or expenses might go up, and surely one of the larger mistakes that guys make is to sell too much bitcoin too soon because they are thinking that their holdings are in sufficient profits and maybe they are even presuming that they are going to be able to buy back cheaper.. and part of the reason that they had put themselves into such a situation is because they do not have enough cash and/or back up funds on hand... so guys need to be careful when they are downplaying the importance of back up funds, which frequently the first whole cycle can cause guys to fail to build their bitcoin holdings because they get sucked into trying to play the cycle because they either do not have enough cash or they believe that they do not have enough cash.
Hello mates, this thread is sort of a new one to me,I mean I am welcomed and could get a summary of what we have been and previously discussed
Since this is a self-moderated thread, I was thinking that I would delete your post, but instead, I decided that I am just going to use your post as an opportunity to call you retarded.
In other words, read the fucking thread or at least read the portions of the thread that are of interest to you rather than expecting other members (perhaps you are asking me to do it?) to do the work for you.
Trolls request that others do the work for them and they create obligations for others rather than being helpful in themselves. There are not too many places on the forum in which trolls are welcome, especially if they make it obvious that they are trolling and/or lazy fucks.
Many guys (who are not retarded and not trolls) will at least start out by reading the OP, and then maybe they will read through some recent posts posts in the thread... so then they have some ideas about some of the various themes and/or some of the recent posts.
