JJG’s Outline of Bitcoin Investment Ideas

[Nwaswago]

After searching, I found this topic on Bitcoin holding related in the Trading Discussion section. I spent some time reading many posts. Where most of them are advising to buy Bitcoin and hold it for a long time. I recently installed the exchanger and set it up. So yesterday I decided to buy some Bitcoin for the equivalent of $240. So today when I entered the exchange, I noticed that the price of Bitcoin has dropped further. If it continues to drop like this, it is not known when it will increase. In that case, I am a little uncertain whether it is better to buy Bitcoin now or wait a little longer and buy when the price starts increasing, then I can make more profit?

Also I have some questions, how do those who have been holding Bitcoin for a long time actually keep their mentality stable when the price drops? Where I am a little afraid before buying Bitcoin .

And if I buy Bitcoin and hold the price is likely to increase. If I buy Bitcoin now, how long will it take for my fund to become 30% profitable?

welcome mate.
You’re already doing good taking a good step,you actually bought. Most people stay stuck in the should I wait? loop forever.

On buying now vs waiting for the bounce,Don’t wait for the green candles. That $240 you put in yesterday is already working for you. If you have mory discrietionary income with time, just buy more. Trying to catch the exact bottom or only buy when it’s going up is how people end up buying higher later. Price can keep dropping for weeks or reverse tomorrow, nobody knows. Just keep adding when you can.

How long-term holders stay calm when it drops is that they stopped looking at the daily price years ago. Seriously. Most of long term holders check the chart way less than we used to. The ones who survive every cycle just treat Bitcoin like a long-term savings account, not a lottery ticket. When it drops they either do nothing or buy a little more if they have a discretionary income available. Fear is normal at the beginning, it fades the longer you hold through a couple of big swings.

Finally there is No honest answer to how long until +30%. Could be 3 weeks, could be 8 months, could be longer. Bitcoin doesn’t run on a schedule. Anyone giving you a confident timeline is guessing. The only real plan is to keep stacking when you can and forget the short-term %. You are early in this Keep it simple,buy what you can afford to hold for years, ignore the daily noise, and don’t stress the dips. You’re already ahead of 90% of people just by having some sats.

[Gragebox]

Emergency funds are important, but, should be built alongside Bitcoin investment,

This the balance most many of our newbies are missing, it not about to build emergency funds first or start Bitcoin first it the both together.

The problem with most of us is that we try to reinventing the wheel for reasons that does not even make sense. It has been sufficiently explained that emergency fund is money needed to protect the investment from sudden sell off, more like a protection for the investment.  If that be the case, there ought to be investment before the need for the protection will arise, meaning that the investor has to get started first then start planning on how to set up emergency funds to protect what he has started. If we continue going back and forth in this, mamy people will even forget the right thing and possibly wonder away.

In my opinion, the most important point is that any kind of financial planning must not be a factor of future delay of all decisions related to investment. Besides, the emergency fund does not need to wait until a bitcoin bag grows sufficiently big. Both should be in the steady formation based on one's financial power. For a person with a low income, it may make sense to just start with a small DCA allocation and emergency fund formation for now. The key point is not to dedicate the money for any income to cover your rent, shopping, healthcare, and some other essential things, and the bitcoin for a long-term investment. There are emergencies that will not wait for an investment case to be created. Smart financial planning will help to handle both tasks without selling the invested bitcoin under an unfavourable condition.

[cocadalcan]

The problem with most of us is that we try to reinventing the wheel for reasons that does not even make sense. It has been sufficiently explained that emergency fund is money needed to protect the investment from sudden sell off, more like a protection for the investment.  If that be the case, there ought to be investment before the need for the protection will arise, meaning that the investor has to get started first then start planning on how to set up emergency funds to protect what he has started. If we continue going back and forth in this, mamy people will even forget the right thing and possibly wonder away.

Instead of wondering which would be started first, how about building both together? What stops a beginner from building both together?Maybe many of you don't know that both can be built together which is why you wonder whether to start the investment before building the emergency funds along the line.
 To be honest i used to be among those who get confused on which to start first untill i learnt that the both cab go together so far the funds for them is available.

If you have extra funds available at the beginning, you can use it as an emergency fund. In that case, you can accumulate lot of Bitcoin from the beginning. And if you do not have a reserve fund at the beginning, you can build up two at the same time but in this case the amount of weekly Bitcoin accumulation may be slightly reduced. If you accumulate Bitcoin regularly through discretionary income, divide this fund into 3 parts and keep one part for Bitcoin one part for emergency fund and the other part as cash with you to meet family and personal extra needs. The more cash funds you have with you while accumulating Bitcoin the more likely it is that your Bitcoin holdings will be safe.

[Different patterns]

Infact we can go into investing in bitcoin without having emergency funds. You should know that we can’t forsake or delay our investment for any reason so long we have discretionary income with available.

This is wrong, and if any Bitcoin investors decides to act this way without putting down emergency funds in place that will protect his or her investment during times of emergency, selling or tempering with his Bitcoin holdings will be the only way out of that emergency crisis, so having it in place as a form of security to protect your investment is the only way your Bitcoin investment can survive for a very long time, because you are surely going to encounter an emergency situation sooner or later in your investment journey.

The only time an investor can invest in Bitcoin is when the investor is just getting started because he would need to start first before he will consider setting up emergency funds. If that is what Cyber-warrior is referring to, he is right……………..

Because a road is free and you can cross at anytime doesn’t mean you should cross without looking. Now you can cross without looking left and right and nothing will happen or you cross and get hit by an incoming vehicle. Starting bitcoin without emergency funds or any form of backups is like crossing the road without looking , there’s nothing right about that.
We are encouraged to invest from our discretionary income because it provides the opportunity to invest, save or spend. For an investor getting started without emergency funds set up, surely he wouldn’t have invested all his discretionary so he’ll have some left over which can serve as emergency funds while he gradually sets it up as he builds his investment.

I agree with you, some investors get excited about getting start of their bitcoin journey and overlook the importance of backup funds, they focus on how much bitcoin they can accumulate and forget that backup funds is also important, because life can also present unexpected problems anytime that you don’t even expect. is not bad to accumulate more bitcoin, but having your backup funds aside that you can have access immediately you have any emergency is also important, what I mean is that unexpected situation shouldn’t interrupt investors long term plan or force someone to sell their bitcoin stash just to take care of emergency.

[SmartCharpa]

The problem with most of us is that we try to reinventing the wheel for reasons that does not even make sense. It has been sufficiently explained that emergency fund is money needed to protect the investment from sudden sell off, more like a protection for the investment.  If that be the case, there ought to be investment before the need for the protection will arise, meaning that the investor has to get started first then start planning on how to set up emergency funds to protect what he has started. If we continue going back and forth in this, mamy people will even forget the right thing and possibly wonder away.

Instead of wondering which would be started first, how about building both together? What stops a beginner from building both together?Maybe many of you don't know that both can be built together which is why you wonder whether to start the investment before building the emergency funds along the line.
 To be honest i used to be among those who get confused on which to start first untill i learnt that the both cab go together so far the funds for them is available.

I believe that both can be build together when the funds are available, but that doesn’t mean that it is necessary to have emergency funds from the beginning, since emergencies don’t happen that often. But you must understand your financial situation and know how to use your money.

Life is unpredictable, and nobody would ever want to be in a situation where they have to sell their bitcoin whether at loss to solve the problem since your plan is to hold for the long term.

However, if a beginner prefer to build both together, then they can maintain a balance between preparing emergency funds and building their investment.

[RockBell]

Emergency funds are important, but, should be built alongside Bitcoin investment, and being .treated as something to worry about later.. and having discretionary income doesn't mean all of it should go be use to buy bitcoin An investor can divide that surplus between regular buying of bitcoin, building of an emergency fund  and  back up funds. The purpose of an emergency fund is to protect the investor from being forced to sell his bitcoin  holding whenever an unexpected situation arises. Consistency matters, but having financial security is also part of a sustainable long term investment plan.

They have to come alongside each other because there is no way you will want to invest and not have an emergency fund, and people understand what it is about because the reason why most people sell is that they don't have things to fall back on, like emergency funds. It helps you avoid selling your coin rather than just investing in it, so we need to be prepared and have all these things ready so that when it happens, you would not have the idea of selling it. After that is settled, you can actually use the remaining time to buy more that is  why DCA is mostly recommended, and all this can come from you using discretionary income

[Charcol]

I think that building an emergency fund equal to 3 months of our income or 3 months of expenses is enough for us. Because 3 months is enough time to find a job if we lose our job. But yes, it is a good decision to create other additional funds for our protection

Let me clarify one thing for you, actually three months of income and three months of necessary expenses are not the same. Therefore, if you use both as the same criterion, you may end up putting much more or less money in the fund than you need. For example, you may earn $1,000 a month, but your monthly necessary expenses are $700. In that case, if you put an emergency fund equal to three months of income for three months, the amount of that fund will be $3,000. But in reality, your three months of necessary expenses are $2,100. Do not underestimate this difference, especially for someone who is trying to collect Bitcoin and build financial security at the same time, this difference can make a huge difference in Bitcoin accumulation. Even if you lose your job, there is no guarantee that you will find a job within three months. It may take one month for some, and it may take six months for others.

[Gravitypull$]

That both can be build together when the funds are available, but that doesn’t mean that it is necessary to have emergency funds from the beginning, since emergencies don’t happen that often. But you must understand your financial situation and know how to use your money.

Don't underestimate the important of emergency funds because emergency doesn't happen often does not mean that you wouldn't be prepared for it. Real life  emergency doesn't announce to anyone when to visit you. It comes in an unexpected time which is the main reason why you must be ready for it the moment you have started your bitcoin investment by building your emergency funds simultaneously with your bitcoin investment overtime till, it gets to three months of your monthly expenses.

It a necessity for a long term investor to survive in his bitcoin investment and become successful in it. Just imagine that you only focused on building your bitcoin investment alone and you are hit with a real life emergency, your bitcoin investment will become your emergency funds because you will have no option than to sell it to solve that problem to avoid it leading to another problem. You might even sell at loss if bitcoin price is below your entry point.

You can share your discretionary income into three parts and put the first part into bitcoin for your regular weekly DCA and the second part to build your emergency funds while, the last part for your discretionary consume. If you invest in the wrong way, you would be able to grow your bitcoin portfolio overtime which is what a long term bitcoin investor should avoid.

[Brizi5000]

I agree with you, some investors get excited about getting start of their bitcoin journey and overlook the importance of backup funds, they focus on how much bitcoin they can accumulate and forget that backup funds is also important, because life can also present unexpected problems anytime that you don’t even expect. is not bad to accumulate more bitcoin, but having your backup funds aside that you can have access immediately you have any emergency is also important, what I mean is that unexpected situation shouldn’t interrupt investors long term plan or force someone to sell their bitcoin stash just to take care of emergency.

Yes I agree with you, starting bitcoin investment with at least a little back up funds is better than not having anyone at all. Most investors start accumulating bitcoin aggressively with all their discretionary income without having a back up funds which they can use to hold on to until when they’re able to figure out another discretionary income to use and accumulate bitcoin next time. However, newbies can start accumulating bitcoin when they have a discretionary income available, and try not to use up all their discretionary incomes accumulating bitcoin alone, they can keep some for Emergency or other back up funds.

[Rhow]

The more cash funds you have with you while accumulating Bitcoin the more likely it is that your Bitcoin holdings will be safe.

Having the necessary cash on hand reduces the likelihood of being forced to sell Bitcoin in an emergency. But do you think that "the more cash you keep, the safer your Bitcoin will be?" If you look at the issue this way, you can ignore the other side of savings. I'm assuming that your monthly expenses are $1,500 and you have already saved $4,500 in cash, which is equivalent to three months of expenses. Your income may be regular and you have no financial responsibilities. In that case, if you just keep increasing the amount of cash savings for a few more years, you may have relatively less money left in your Bitcoin savings. Which can slow down your Bitcoin savings. At the same time, I should also say that if someone's income is irregular and there are more family responsibilities, then more cash protection may be reasonable for them.

[Jewan420]

The more cash funds you have with you while accumulating Bitcoin the more likely it is that your Bitcoin holdings will be safe.

Having the necessary cash on hand reduces the likelihood of being forced to sell Bitcoin in an emergency. But do you think that "the more cash you keep, the safer your Bitcoin will be?" If you look at the issue this way, you can ignore the other side of savings. I'm assuming that your monthly expenses are $1,500 and you have already saved $4,500 in cash, which is equivalent to three months of expenses. Your income may be regular and you have no financial responsibilities. In that case, if you just keep increasing the amount of cash savings for a few more years, you may have relatively less money left in your Bitcoin savings. Which can slow down your Bitcoin savings. At the same time, I should also say that if someone's income is irregular and there are more family responsibilities, then more cash protection may be reasonable for them.

3 months of expenses are just for emergency fund. You also need to have a reserve fund and some cash that will be used to fulfill your daily hobbies or hang out with friends. So from my point of view, you should have more than 3 months of expenses in the backup fund. The total amount of cash in the backup fund may be equal to 6-8 months of expenses.

You may not be able to prepare this cash in 1 year or 2 years. After allocating money for daily expenses and investments, you may not get such an amount of money that you will not be able to accumulate the required cash in just a few years. It may take you at least one cycle to add such a huge amount to the cash fund along with investments. After such a long investment experience, he may not have to hesitate about which fund he needs to give more priority. It is better to have almost equal priority to both the investment fund and the backup fund at the beginning of the investment. Considering the financial situation, it may be better for someone to have a different plan.

[Female King]

The problem with most of us is that we try to reinventing the wheel for reasons that does not even make sense. It has been sufficiently explained that emergency fund is money needed to protect the investment from sudden sell off, more like a protection for the investment.  If that be the case, there ought to be investment before the need for the protection will arise, meaning that the investor has to get started first then start planning on how to set up emergency funds to protect what he has started. If we continue going back and forth in this, mamy people will even forget the right thing and possibly wonder away.

Instead of wondering which would be started first, how about building both together? What stops a beginner from building both together?Maybe many of you don't know that both can be built together which is why you wonder whether to start the investment before building the emergency funds along the line.
 To be honest i used to be among those who get confused on which to start first untill i learnt that the both cab go together so far the funds for them is available.

I believe that both can be build together when the funds are available, but that doesn’t mean that it is necessary to have emergency funds from the beginning, since emergencies don’t happen that often. But you must understand your financial situation and know how to use your money.

Life is unpredictable, and nobody would ever want to be in a situation where they have to sell their bitcoin whether at loss to solve the problem since your plan is to hold for the long term.

However, if a beginner prefer to build both together, then they can maintain a balance between preparing emergency funds and building their investment.

It's necessary to start saving up your emergency funds from the beginning of your bitcoin journey if it's been delay and you start buying bitcoin you might be force to sell off the ones you have accumulated because emergency can also come up at the beginning of your bitcoin investment which no one knows.

We know that emergency is not what we are sure about on when it will happen that's why is important as you are buying bitcoin you are also saving some part of your discretionary funds to your back up funds, any one who left his emergency behind and start accumulating bitcoin is only just gambling with their investment.

[I_Anime]

This is the JJG bitcoin investment ideas thread, so why are participants continue to say the opposite of what I am saying and not addressing what I have already said multiple times.

Sure, you can disagree with me, but you better give some reason why - other wise maybe I should just delete those kinds of posts that just keep making more work for me.

Are there guys who do not understand that if there is absolutely no back up funds, then there is no way to know that you are buying bitcoin with discretionary funds because you used all your money to buy bitcoin.

In other words some back up funds are needed - otherwise gambling is taking place, and are guys recommending to gamble with their bitcoin?  That would seem off topic.

I don’t know if that’s what aggressive buying means to them. Because that seems more like financial recklessness, there’s nothing wrong with being aggressive with your bitcoin accumulation, but buying aggressively with any proper risk management (like setting aside some back up funds ) ain’t smart at all . Usually see folks talking about accumulating without having any back up funds , thinking once they’ve covered their expenses they’re good to go (have nothing to worry about), not knowing they’re only putting their investment in the position of been that emergency funds they refuse to build .

[JayJuanGee]

The example of your road crossing shows one thing financial responsibility plays a key role. Investments made without an emergency fund are risky and leave people in a tricky situation in case of unexpected expenditures. Bitcoin is a very unstable asset and no one can be sure that the market conditions will be favorable in case of urgent need for money. In my opinion, financial security should be ensured before the investor grows his wealth. The best variant would be if everyone had an emergency fund for 3-6 months before the start of investments. But if it is impossible to gather such fund at once, it is possible to make investments starting from the smallest and save money for the emergency fund from the rest. One more aspect is the separation of money on the emergency fund and on investments. Otherwise, poor market situation along with unexpected expenditure may lead to selling of Bitcoin at loss.

Waiting for an emergency fund to be fully built before starting to invest is a foolish decision and a waste of time. Because a person needs discretionary income to start investing. If a person is able to find a source of discretionary income, they can build an investment and an emergency fund at the same time. When we are willing to build a complete emergency fund at the beginning, we will miss many buying opportunities, fall far behind the goal of building a portfolio, etc. We will face many problems. The best decision is to move the emergency fund and investment forward in parallel.

I think that building an emergency fund equal to 3 months of our income or 3 months of expenses is enough for us. Because 3 months is enough time to find a job if we lose our job. But yes, it is a good decision to create other additional funds for our protection

har or more to build up his back up funds to 3 months of his expenses.  Of course, the higher his discretionary funds, then the faster that he could build it up.

Once he gets up to 3 months of his expenses, then presumptively at that point in time he might have had put 3-6 months of his expenses into bitcoin and bitcoin may have grown in value (or maybe not?). There can be reasons to continue to build back up funds beyond 3 months of expenses, especially as the bitcoin investment is growing based on both ongoing contributions and perhaps based on BTC price appreciation.

Guys have to decide the extent to which he might want to continue to grow his cash back up funds or if he might keep his cash back up funds in other kinds of forms.

If the guy has 1-2 years or more of his expenses in bitcoin (whether through adding to it or bitcoin's price appreciation, there could be justifications for him to want to continue to grow his back up funds beyond 3 months of expenses.

[edited out]

 
However, if an investor already have a lump sum funds of three months of his monthly expenses before he consider investing into bitcoin. He can split that funds into three equal parts. The first part for his weekly DCA by spreading it across in various weeks, the second part for his emergency funds and the last part for his discretionary consumption while he continues like this with his further discretionary income.

This is a confusing example. If a person had been saving up money prior to bitcoin and if he got the money up to a sizable amount that might be 1-3 months of his expenses, then yeah, there might be a need to invest part of that and then build the emergency funds and the bitcoin holdings at a similar pace - yet I don't see any reason to consider some kind of a need to discretionarily consume 1/3 of the funds that he had already saved up.

Now if a guy got a lump sum amount in the early parts of his investing into bitcoin, and if he already had DCA going on and he was already putting money into his emergency funds, then yeah, he might have to consider how much of that newly acquired lump sum amount he is going to authorize towards bitcoin investing, savings and/or discretionary consumption.  If we prioritize bitcoin investing, then I see no reason to give equal priority to discretionary consumption, yet guys are surely free to decide for themselves in regards to how much of their newly acquired lump sum they want to assign to each of the categories.

So then as far as allocating, they decide invest, save and/or consume, and then within the portion of the authorized investment amount they decide 1) lump sum (buy right away), 2) DCA (defer by time) and/or 3) buy the dip (defer by price dips that might not end up happening).

Otherwise, poor market situation along with unexpected expenditure may lead to selling of Bitcoin at loss.

Unexpected expenditure should be handled by your emergency fund, that is its essence. Market situation should not make you sell your bitcoin since you're only buying and holding and not trading it.

Yes.  if the unexpected expenses are for basic needs and they cannot be deferred, then we use our discretionary funds, and maybe our reserve funds, and then if we have no other funds we use our emergency funds, and if we run out of all of those funds, then all that we have remaining is our bitcoin, so we should be trying to avoid and/or minimize the amount of bitcoin that we are selling at times that are not of our own choosing.

Sometimes, we may well end up draining all other funds and have no choice but to use our bitcoin, and sometimes we could have had avoided having to use our bitcoin if we had kept sufficient quantities of back up funds.

[edited out]

Finally there is No honest answer to how long until +30%. Could be 3 weeks, could be 8 months, could be longer. Bitcoin doesn’t run on a schedule. Anyone giving you a confident timeline is guessing. The only real plan is to keep stacking when you can and forget the short-term %. You are early in this Keep it simple,buy what you can afford to hold for years, ignore the daily noise, and don’t stress the dips. You’re already ahead of 90% of people just by having some sats.

A person who gets into bitcoin looking fro a 30% price appreciation could not be considered an investor.

[edited out]

......The more cash funds you have with you while accumulating Bitcoin the more likely it is that your Bitcoin holdings will be safe.

Sure, we want to be keeping our bitcoin safe, yet we are not prioritizing cash... we are figuring out a balance to keep our bitcoin safe, and yeah, we do not want to get into a situation where we have to use our bitcoin, so we will likely tend to need to keep extra cash that we likely will not end up using.. .but just keeping as insurance to protect our bitcoin.

[edited out

3 months of expenses are just for emergency fund. You also need to have a reserve fund and some cash that will be used to fulfill your daily hobbies or hang out with friends. So from my point of view, you should have more than 3 months of expenses in the backup fund. The total amount of cash in the backup fund may be equal to 6-8 months of expenses.

You may not be able to prepare this cash in 1 year or 2 years. After allocating money for daily expenses and investments, you may not get such an amount of money that you will not be able to accumulate the required cash in just a few years. It may take you at least one cycle to add such a huge amount to the cash fund along with investments. After such a long investment experience, he may not have to hesitate about which fund he needs to give more priority. It is better to have almost equal priority to both the investment fund and the backup fund at the beginning of the investment. Considering the financial situation, it may be better for someone to have a different plan.

You better have some damned good reasons if you are keeping more than 3-5 months of cash, such as a BIG ass bitcoin investment that might add up to 1-2 years or more of your income.

[2Pizza410000BTC]

The more cash funds you have with you while accumulating Bitcoin the more likely it is that your Bitcoin holdings will be safe.

Having the necessary cash on hand reduces the likelihood of being forced to sell Bitcoin in an emergency. But do you think that "the more cash you keep, the safer your Bitcoin will be?" If you look at the issue this way, you can ignore the other side of savings. I'm assuming that your monthly expenses are $1,500 and you have already saved $4,500 in cash, which is equivalent to three months of expenses. Your income may be regular and you have no financial responsibilities. In that case, if you just keep increasing the amount of cash savings for a few more years, you may have relatively less money left in your Bitcoin savings. Which can slow down your Bitcoin savings. At the same time, I should also say that if someone's income is irregular and there are more family responsibilities, then more cash protection may be reasonable for them.

Yes, it is true that Bitcoin is much safer if you have some cash on hand because when my family needs come or my personal needs come, if I have some cash, I can meet my needs and those of my family with that money. But if I don't have any cash and all my cash is invested in Bitcoin, then it will be seen that I may have to sell my Bitcoin investment for my personal needs or family needs. However, there is no need to keep too much cash at home. You should keep as much as you need.

[Joeboy]

~snip~

Yes I agree with you, starting bitcoin investment with at least a little back up funds is better than not having anyone at all. Most investors start accumulating bitcoin aggressively with all their discretionary income without having a back up funds which they can use to hold on to until when they’re able to figure out another discretionary income to use and accumulate bitcoin next time. However, newbies can start accumulating bitcoin when they have a discretionary income available, and try not to use up all their discretionary incomes accumulating bitcoin alone, they can keep some for Emergency or other back up funds.

The presence of backup and/or emergency funds isn't a prerequisite for kickstarting your accumulation journey..Once folks can realize their discretionary income, then they could very well kickstart their investments...Surely, it worth considering the possibility of emergency situation occuring at the early stages of ones investment journey, which is why it is advisable that folks priorizes their back up funds at the early stages of their accumulation... Prioritizing simply means that folks should also make room for building these backup funds just as they are investing...And they could achieve that by dividing the extra money left after their basic needs and responsibility has been sorted out into two halves, one part is used for investing and the other goes for backup funds...Either funds shouldn't affect the other while building it, since they both can be built simultaneously...
And while building backup funds, folks shouldn't overcommit... They need to find the right balance to avoid slowing or stopping their accumulation process all in the name of building emergency funds and vice versa..

[ZeroVinsonN]

It's necessary to start saving up your emergency funds from the beginning of your bitcoin journey if it's been delay and you start buying bitcoin you might be force to sell off the ones you have accumulated because emergency can also come up at the beginning of your bitcoin investment which no one knows.

We know that emergency is not what we are sure about on when it will happen that's why is important as you are buying bitcoin you are also saving some part of your discretionary funds to your back up funds, any one who left his emergency behind and start accumulating bitcoin is only just gambling with their investment.

If you have enough discretionary income then the best thing to do will be to do them side by side since we really can't tell when an emergency will happen but if you are pushed into a situation where you have to pick one over the other the you are better off investing in bitcoin over your emergency fund but this is only if at that point in time you only have enough discretionary income for one.

It's not ideal to do this continuously though because that will mean that you are only buying bitcoin without ever building your emergency fund, if your discretionary seems to not be enough to try to generate more of it, you can try to increase your income or cut down on your expenses, whichever one is easier for you to do so you can also build your emergency fund alongside your bitcoin investment.

[Barikui1]

Yes, it is true that Bitcoin is much safer if you have some cash on hand because when my family needs come or my personal needs come, if I have some cash, I can meet my needs and those of my family with that money. But if I don't have any cash and all my cash is invested in Bitcoin, then it will be seen that I may have to sell my Bitcoin investment for my personal needs or family needs. However, there is no need to keep too much cash at home. You should keep as much as you need.

Their is a reason we are only adviced to invest from our discretionary income, which is the money that is left after all our basics needs have been met, and their is also a big reason we are adviced to put down our emergency funds alongside our Bitcoin accumulation because at any given time, emergency might come, so if you have it in place, you will have something to fall back to that can protect your investment, not by falling back to your Bitcoin investment.

And in addition, it's very important that your emergency funds is also available in cash, so that if your bank lock you out when you intend making use of it in times of emergency, you will not have any problems in having access to your emergency funds.

[Sobz]

Yes, it is true that Bitcoin is much safer if you have some cash on hand because when my family needs come or my personal needs come, if I have some cash, I can meet my needs and those of my family with that money. But if I don't have any cash and all my cash is invested in Bitcoin, then it will be seen that I may have to sell my Bitcoin investment for my personal needs or family needs. However, there is no need to keep too much cash at home. You should keep as much as you need.

This is why it is important for an investor to figure out income to invest accordingly. Income needs to be managed and plan very well. If it is not being planned and managed very well you may end up in spending on things that are not even important and you wont be able to invest in Bitcoin. And if you dobt figure out well to invest with the amount you can afford lose and you invest heavily in bitcoin and neglecting to keep money for expenses or not having emergency fund, it might be very challenging to hodl but when income is being managed very well you dont have to spend your bitcoin on expenses.

[Ishicryptic]

~snip~

Yes I agree with you, starting bitcoin investment with at least a little back up funds is better than not having anyone at all. Most investors start accumulating bitcoin aggressively with all their discretionary income without having a back up funds which they can use to hold on to until when they’re able to figure out another discretionary income to use and accumulate bitcoin next time. However, newbies can start accumulating bitcoin when they have a discretionary income available, and try not to use up all their discretionary incomes accumulating bitcoin alone, they can keep some for Emergency or other back up funds.

The presence of backup and/or emergency funds isn't a prerequisite for kickstarting your accumulation journey..Once folks can realize their discretionary income, then they could very well kickstart their investments...Surely, it worth considering the possibility of emergency situation occuring at the early stages of ones investment journey, which is why it is advisable that folks priorizes their back up funds at the early stages of their accumulation... Prioritizing simply means that folks should also make room for building these backup funds just as they are investing...And they could achieve that by dividing the extra money left after their basic needs and responsibility has been sorted out into two halves, one part is used for investing and the other goes for backup funds...Either funds shouldn't affect the other while building it, since they both can be built simultaneously...
And while building backup funds, folks shouldn't overcommit... They need to find the right balance to avoid slowing or stopping their accumulation process all in the name of building emergency funds and vice versa..

What you need to get started in your Bitcoin investment is discretionary funds, from the fund you can decide how much is comfortable for you to be accumulating Bitcoin same thing with other discretionary funds, it's at your discretion to know how to allocate funds. It's not necessary that you must have backup funds before buying Bitcoin, what is important is to have emergency funds because life is full of uncertainties, if the unexpected happens you don't have to sell your Bitcoin. You don't have to put yourself under pressure before buying Bitcoin because it is what you're going to be buying for years, if there is backup funds to buy dip you can do so if not just do your regular DCA.