Buy Buy Buy or Sell Sell Sell?

[Jewan420]

Truly in every investment general there is always a need for other means of savings which could be known as emergency funds or reserve funds, although they are both two different things but sometimes can be substitute for each other, so actually in terms of Bitcoin investment emergency funds plays a very vital role because is actually one of the determining factor of your investment success because if there is an emergency funds there is no way any unforseen need will stand as a barrier on your investment because you already have other funds that will take care of those needs. Actually this has been one of the challenges most investors are facing because they always get overwhelmed by there investment and forgetting the things that should be put in place in other for there investment to stay strong such as the emergency funds.

Emergency fund is very important when it comes to saving. Emergency funds help you stretch your savings seamlessly. It is very important to create a fund to save for investing in Bitcoin, so that you can use it in times of danger or emergency and your savings do not suffer any loss. You can divide your income into 4 parts.You can use one part for your family, second part for yourself, third part for your emergency fund and fourth part for investments. This method may help you maximize your savings.

Emergency fund is not recommended for investing in bitcoin but no bad to use it because put emergency fund in bitcoin have potential in the future price keep increasing than hold in pocket only, not really difficult for withdrawing emergency fund when saving in Bitcoin due put or hold in exchange wallet and when emergency happening to us we can sell and withdraw to bank account without take 10 minutes. No one can't predicting when happening with something urgent for us and my opinion better put emergency fund in bitcoin investment and seems the same when have parent hold or save their money allocated for children education. Hold in the bank can make it double although we start investing when our children under two or three years and take at seven or ten years later. Its very important allocated our fund for children cost but effective when saving or put in Bitcoin.

This is your misconception. Emergency funds should never be invested in any investment. If you earn bitcoins directly, you can save with bitcoins in an emergency fund. Very few people can earn bitcoins. If you don't earn bitcoins, if you do earn money, investing in an emergency fund or reserve fund to save bitcoins is a stupid thing to do. If that is the case, I would say there would be no need for an emergency fund. You invest and use additional bitcoins above the investment target limit if necessary. If you save in an emergency fund with bitcoins, you may face losses. Danger never comes. Danger can come at any time. When the Bitcoin price falls below the purchase price and you need money at that time, you will face losses. Both the standard of living and the crypto market are volatile. It is not possible to say exactly which is when. So, it is better to have an emergency fund with cash.

[Bravut]

Truly in every investment general there is always a need for other means of savings which could be known as emergency funds or reserve funds, although they are both two different things but sometimes can be substitute for each other, so actually in terms of Bitcoin investment emergency funds plays a very vital role because is actually one of the determining factor of your investment success because if there is an emergency funds there is no way any unforseen need will stand as a barrier on your investment because you already have other funds that will take care of those needs. Actually this has been one of the challenges most investors are facing because they always get overwhelmed by there investment and forgetting the things that should be put in place in other for there investment to stay strong such as the emergency funds.

Emergency fund is very important when it comes to saving. Emergency funds help you stretch your savings seamlessly. It is very important to create a fund to save for investing in Bitcoin, so that you can use it in times of danger or emergency and your savings do not suffer any loss. You can divide your income into 4 parts.You can use one part for your family, second part for yourself, third part for your emergency fund and fourth part for investments. This method may help you maximize your savings.

Emergency fund is not recommended for investing in bitcoin but no bad to use it because put emergency fund in bitcoin have potential in the future price keep increasing than hold in pocket only, not really difficult for withdrawing emergency fund when saving in Bitcoin due put or hold in exchange wallet and when emergency happening to us we can sell and withdraw to bank account without take 10 minutes. No one can't predicting when happening with something urgent for us and my opinion better put emergency fund in bitcoin investment and seems the same when have parent hold or save their money allocated for children education. Hold in the bank can make it double although we start investing when our children under two or three years and take at seven or ten years later. Its very important allocated our fund for children cost but effective when saving or put in Bitcoin.

You are contradicting your statement, emergency funds is not to be confused with investing. If I get you clearly you are talking about investing emergency funds because it has potential to go up which is dumb. In as much as we are optimistic, during such emergency situation there is no guarantee that Bitcoin price would be high, we should stop unnecessary interpretation of stuff because "Bitcoin will surely pump Mentality".

Emergency funds is best save in fait, in 10 minutes unquestionable event might happen, your point lack base. Understand what Emergency really is before you talk...not you interpreting to investing it.

[JayJuanGee]

[edited out]

There is a new world order on the arising and Bitcoin is a big player in that new world order. The shift on the societal plates isn’t one that vibrates the same for everyone to adjust with at its pace. Some might respond slowly while others a lot faster. This depends on how deep you are with the systems that once ran your life.
Someone like W. Buffet, one of the richest men by Forbes doesn’t really see much value in Bitcoin and the systems that backs its bankroll.

Therefore, you can imagine how they would ever tend to see Bitcoin for an asset. For all they know, it’s just some code online, designed by someone and it’s been used or maintained by many on the blockchain technology,,, maybe am not putting this in its best ways but yack, how the hell do they value such.

It comes to the question of how someone truly values a thing. While you might see value in one thing, someone some place else wouldn’t. Even in the real estate business, you don’t get to value the same house and property the same. Neither would you see some property what acquiring at a price.

But, we are talking about asset here and asset should be defined by its qualities and not the feel about it. That’s just an aspect of a human’s sensation and not all of that are the touch feeling or having to see them.
Assets can also exists in the digital realms. Bitcoin is as much an asset as the many of them properties out there, it’s qualities should be the qualifier.

These are not bad points JiiBs, and there can be benefits in terms of attempting to measure and/or value various kinds of assets, and even differing kinds of assets are giong to comparable features and they will have differing features.. so I am not sure about all of the categories of evaluating the value of assets, since surely folks will see differing attributes of assets differently, and sometimes we might also make errors in terms of how we value something and whether we might account for certain aspects of how it is valued.. Maybe some examples of how to evaluate the value of assets might be in order even though many of us already likely employ some of these:

1) how liquid is the asset - meaning how easy to get in and out and how many places can you accomplish such

2) physicality - can be a advantage or a disadvantage - whether we are referring to physical properties (real estate and/or location, location, location), commodities such as gold, silver or oil, or something that is digital (which is not physical)

3) the extent to which an asset stores value - or is being used in that kind of a way (and is it very efficient in the way that it stores value - and upon what kind of a timeline is the value expected to be stored and/or extracted) - depreciating in value or increasing in value

4) does the asset have various utility value.. such as gold being used in industry or jewelry or bitcoin being used to move value or transact over time and space. These can be considered as utility aspects of the value of an asset

5) expected future value of an asset - we may or may not be able to measure this accurately - or some folks can measure better than others, and surely there could be pay-offs for folks who end up being more correct in their assessements - to the extent that they act upon their assessments

6) can the asset be consumed or does it hold its value or depreciate over time based on various market forces

7) how much regulation is involved with such asset - and or burdens of regulation, taxes, governmental monitoring

there might be some subjective and/or objective ways that assets are valuated - and of course, the subjective ways are ways that some individuals might value something greater than others based on sentiments yet objective value is more likely to contribute to market value in terms of how others value the asset - and of course, these can change over time in the sense that some folks might not realize bitcoin to have value in 2010-2012 because hardly anyone except the geeks actually had any clue about what bitcoin is.. but then the more than bitcoin is around, the more people hear about various ways that it is being used and can be used.

9) financialization of assets - when the asset starts to be used through various kinds of financially designed instruments that have terms to ownership - and surely as we know sometimes may well end up requiring 3rd-party custody in terms of the way the financialize products are designed

10)  Likely other kinds of ways that assets could be evaluated for their value that I had not considered off the top of my head

I just went through these categories off the top of my head and surely I am not claiming to have had made a comprehensive list of ways that assets are valuated or even to have had selected categories of valuation that are exclusive from one another, since sometimes the categories of valuation do seem like they overlap in various ways.. and also, I do not proclaim that the value of assets are necessarily stuck in time.. since sometimes assets might have complementary characteristics and/or may not substitute for other assets.. so some assets may in some ways correlate to the value of other assets or sometimes not correlate very closely.. or even inversely correlate.  

With bitcoin we have a kind of phenomena in which many of us proclaim that the value of so many already existing asset classes have become corrupted by various dollar (and fiat) influences, and sure bitcoin is not completely exempted from such corrupting influences, yet bitcoin has some in-built mechanisms of soundness and scarcity that attempt to bring alternative resolutions to the wide-spread corruption of fiat and debt-based systems (in attempts to create more sound incentive systems that are less manipulatable as compared to supply of fiat money systems) - while at the same time bitcoin is not completely detached from fiat money system, since fiat money systems continue to exist along the side of bitcoin so it might be observed that bitcoin has various kinds of interrelation within those already existing fiat value systems while hopefully having enough independence in order to not be so correlated to (or able to become as corrupted by) those debt-based systems to that hopefully bitcoin is going to end up having greater values based on some of its abilities to bring more responsibility (better incentives) to seemingly out of control and negatively spiraling existing systems of value.  

People that can keep their emergency funds in bitcoin are those investors that have accumulated more than enough Bitcoin or feel that they have enough Bitcoin, because they have reached their bitcoin target and if they sell, they will not run at loss either during the dip or when bitcoin price is high. Part of their bitcoin can serve as an emergency funds for them.

Emergency funds, reserve funds and float should be in fiat.

Sure some people who have gotten a huge stash of bitcoin can still keep their emergency funds in Bitcoin but to me it will be unwise for any bitcoin investor to convert their Bitcoin to Fiat simply because they want to attend to an emergency because if it is a time when transactions fee are high and there is so much congestions in the mempool it will be difficult to attend to that emergency needs are that particular period of time since the transaction may be delayed and to withdraw little amount of Bitcoin with a high transaction fee is not ideal. However your ending paragraph is just the best way

For sure it is better for beginner and more newbie investors to consider various ways to make sure that they have their emergency funds, reserves and float in fiat (and not in investible and/or working assets), yet at some point, when a person has acquired a certain higher level of wealth, the amount of fiat that it might take to support himself in an emergency may well end up being a very small portion of his overall wealth, so it becomes less important that such more wealthy person needs to preoccupy himself in terms of how much cash that he may well hold versus having his various assets continuing to be in various "working" forms...

Even within the context of achieving "higher levels of wealth," there would be differences between someone who has wealth that is in the 10-20x the size of his annual income/expenses versus someone who has wealth in the range of 100x to 200x his annual income/expenses... and yeah, maybe some of this is unrealistic to even be exploring the ideas of how extremely rich folks end up having more options in regards to how they manage their wealth - yet the idea of having excessive wealth makes it less important to have to follow specific rules of having to keep a certain amount of value in fiat, even though maybe incidentally very wealthy folks may have a variety of ways to draw upon their wealth in different kinds of forms because sometimes when reaching certain high levels of wealth there still ends up being some tendencies to keep some wealth in less volatile forms.. that might even be 1-2 years worth of income/expenses that are kept in ways that could be more easily drawn upon - and yeah, maybe even some rich folks like to live on the edge - and not preserve some kind of a cash/cash equivalent cushion, and even very wealthy folks might some times end up managing their wealth poorly and get themselves into situations in which they might be suffering from some lack of liquidity and then have to sell certain assets at a time that is not convenient based on their engaging in sloppy wealth management.. but again, maybe it does not matter too much if the person has wealth in the range of 100x to 200x his annual income/expenses, but at the same time, sometimes changes in the value of some assets (and extreme volatility) might drop precipitously and so maybe someone with wealth in the ballpark of 100x to 200x his annual income - all of a sudden might find himself with lower levels of wealth because some of his assets lost value at the same time and then all of a sudden he might find himself with having wealth that is ONLY 25x to 40x of his income/expenses and finding himself considering ways to deal with that lower level of wealth (at least on paper) since he still might not want to overly have to sell working assets (such as bitcoin) at a time that those assets are in price dips..and yeah if several assets drop 50% to 80% in a relatively short period of time, even very wealthy folks may well have to make some short-term adjustments including considering why they had gotten themselves into such a situation that they were not managing their wealth very well..

And, yeah, wealthy folks have way more options to not get completely reckt, while at the same time, if a relatively poor person or someone who is in the earlier stages of building his wealth who may have less than 1-2 years worth of income/expenses in his investment portfolio, such lower level wealth persons might become completely reckt by engaging in sloppy investment practices including but not limited to failing/refusing to keep their emergency fund, reserves and float in fairly liquid cash forms... which may seem like a burden and may even seem as if some of their wealth is not working enough for them, but there is a difference between having a decent amount of your wealth working for you and engaging in kinds of gambling that fail/refuse to adequately maintain funds in cash so that actual working portions of your investment portfolio (which may well ONLY be bitcoin for a large number of newbies who are in their earlier stages of attempting to build wealth) can stay invested even during down periods and perhaps being able to continue to buy bitcoin through good and bad times, and worse case scenario if the poor person is not able to continue to buy bitcoin, at least if they are not forced to sell any at a inopportune and downity times in the BTC prices.. that could last 3-6 months or even could last for a couple of years or more..

[edited out]

Emergency funds are meant to provide a safety net during unexpected events or financial shocks, and having them in bitcoin is not advisable.  I think people can keep their float/ reserve cash in bitcoin not emergency funds in bitcoin. Because  keeping emergency funds in Bitcoin It's not suited immediate need of it, to have quick access to funds in times of need, especially during emergencies. Keeping emergency funds in a stable form like fiat currency ensures that you can easily access the money without worrying about market fluctuations affecting the value when you need it the most. It's wise to prioritize stability and accessibility when it comes to emergency funds.  keeping float or reserve cash in Bitcoin could be a viable option for those who want to potentially benefit from the asset's appreciation, while maintaining a separate emergency funds in fiat currency for quick access and stability.  having emergency funds in a stable and easily accessible form is crucial. Fiat currencies like cash or money market funds are ideal for this purpose, as they are less volatile and widely accepted.

You are not wrong Kliss, since each of us has to figure out how much of our emergency funds, reserves and/or float to keep in cash versus if we are wanting to have some of it working, yet I think that you are defeating the purpose if you are trying to overly get your reserves and your float to be working for you.. since if you think about it, reserves and float are conceptualized to be cash/cash equivalents and their size may well vary.. surely your emergency fund might be 3-6 months but never used in 20-30 years of having it and maintaining it, since your float and your reserves may well end up absorbing any kind of cash-flow inconsistencies, surprises, miscalculations or even emergencies (or quasi-emergencies) that may come up from time to time, so the level to which any of us runs out of cash and/or our cash cushion, then the more we might end up being forced to cash out of some or all of our bitcoin at a time that is not completely of our own choosing.. ..

so we might not even realize that we had gotten ourselves into a pickle until we are finding out after a few months of suffering cashflow issues and then coming close to exhausting our various funds that we did not have enough funds in cash to deal with the situation and then if after a few months of exhausting our cash, we then have some additional unexpected expenses or loss of income, then where are we?  We may well be at a place of having to sell some or all of our bitcoin and perhaps totally wrecking a plan of building our BTC holdings that we may well might have been employing for 4 years or longer and then we find ourselves having to start over again, but instead of starting out with BTC price being X, we find ourselves restarting and BTC prices are 5x or 10x higher than X.... so yeah.. where are we at that point?  We failed/refused to adequately/sufficiently prepare ourselves to not get reckt.. and we had ended up gambling too much, even though we thought that we were being sufficiently prudent and sufficiently cautious.... but we did not realize that we ended up not being prepared for what ended up happening... and these are not easy balances for any of us to make, especially since we are NOT going to realize that we had not been sufficiently prepared until it is too late... but each of us has to make these kinds of balances and hope that we are sufficiently aggressive in our bitcoin investment, but not overdoing our BTC investment so much that we end up wrecking ourselves a few years down the road.

[edited out]

This is your misconception. Emergency funds should never be invested in any investment.

The only way emergency funds should be used in terms of investment is if they happen to be excessive, and surely some folks might be labeling all of their extra funds as emergency funds, and part of their emergency funds might be reserves and/or float but they are labeling such as emergency funds.

So yeah there can be questions regarding how much emergency funds a person needs to build up.. and if someone is brand new to investing and brand new to consciously paying attention to building and maintaining an emergency fund, then the emergency fund might start out relatively small.. maybe just by coincidence normal people might keep a kind of float of 2-4 weeks of their expenses worth of extra cash that is kind of considered to be used for any any extra expenses that might come about.. but then once they start to invest into something like bitcoin, they realize that they are likely going to need to keep larger amounts, such as 3-6 months worth of emergency fund, but they are not necessarily going to get their emergency fund up to that size immediately, so they end up building up their bitcoin investment and their emergency fund at the same time.. and surely once they get their emergency fund up to a certain size (such as a minimum of 3 months), then they might begin to feel that they have more abilities to be aggressive in their BTC accumulations (adding to their BTC holdings) or even to use some of the excess (greater than 3 months amounts) for the purposes of investing into bitcoin or other kinds of purposes.. but yeah, if they are barely floating on keeping ONLY 3 months as emergency funds that are not touched for any reason except actual emergencies, they may well find that they are not keeping enough emergency funds since sometimes various expenses can come at the same time and quickly eat into such relatively lower level amounts of financial cushion... .so yeah in the end, there becomes more and more need to keep some funds in cash that never get touched because otherwise the depletion of such extra cash ends up putting the person closer and closer to having to dip into his bitcoin investment that might be at a time that is not at his own choosing.

If you earn bitcoins directly, you can save with bitcoins in an emergency fund. Very few people can earn bitcoins. If you don't earn bitcoins, if you do earn money, investing in an emergency fund or reserve fund to save bitcoins is a stupid thing to do.

I think that it is very weird to be failing refusing to consider reserves in terms of fiat, unless there are some folks who truly are able to spend all of their expenses in bitcoin.. or if maybe they have so much bitcoin that they are willing to just take the chances of keeping all of their value in bitcoin (presuming they earn in bitcoin), and so these seem to be less common kinds of circumstances, and there is a certain level of healthiness to considering holding and/or converting value into fiat.. since even if some expenses might be payable in bitcoin, they are likely calculated in terms of fiat.. so it does not even seem very realistic that we are considering some of the exceptional cases in which some few folks might completely earn in bitcoin and are able to spend in bitcoin and they just let bitcoin's volatility go where it goes, especially if they are already getting all of their income in bitcoin..

These folks are more specialized and not really representational to be discussing in terms of being applicable to general threads like this.. so maybe their situations should be discussed in other threads that pertain to those special kinds of situations that are far from representative to the circumstances of an overwhelming number of folks, including that probably somewhere close to 99% of the world's population does not have any BTC (no coiners) or if they have some they have way too little (low coiners).  So it seems way more relevant to be trying to address the overwhelming majority of folks who need to get more coin and to figure out ways to build their BTC holdings instead of the more rare folks who have enough or more than enough BTC that ends up putting them into more of a special category rather than being representative of the situations of the overwhelming majority of the population who are low coiners or no coiners.

If that is the case, I would say there would be no need for an emergency fund. You invest and use additional bitcoins above the investment target limit if necessary. If you save in an emergency fund with bitcoins, you may face losses. Danger never comes.

This is starting to sound like a person who is overly accumulated in bitcoin, and surely even such persons who are overly accumulated in bitcoin may well be better served to make sure that they keep 3-6 months or more in cash and/or cash equivalents - yet surely each person is free to figure out his own balances, and surely if s/he is over allocated in bitcoin, then his/her situation does not sound very typical . but it still seems like there are likely better ways to balance their accounting and even to improve the value retention of their own wealth by keeping some value in cash, cash equivalents or in forms that are something other than bitcoin (not referring to shitcoins.. but yeah, sometimes people with unusual circumstances might well be better served to have some of their value in shitcoins than to have 100% in bitcoin).. even though typically, I would jnot recommend keeping more than 10% of the value of bitcoin in shitcoins, there could be some special circumstances that justify other kinds of balances, and yeah, each person is responsible for his own trade-offs. and not wanting to derail too much into discussing how to weigh shitcoin allocations.. since there is likely enough challenges in terms of merely considering the balances of bitcoin versus cash allocations..

Danger can come at any time. When the Bitcoin price falls below the purchase price and you need money at that time, you will face losses. Both the standard of living and the crypto market are volatile. It is not possible to say exactly which is when. So, it is better to have an emergency fund with cash.

First: Some of the calculations regarding the extent to which BTC is profitable may or may not be applicable to some folks who are either earning in bitcoin or maybe they had been in bitcoin for so long that they have costs per BTC that are way lower than any likely price that BTC might end up going.. so the level of profitability may well not be very much of an issue for some folks who are considering holding most if not all of their value in bitcoin (including their emergency fund, reserves and/or float) and then spending their bitcoin from whatever point that they might need (or want) to spend them.

Second:  I am not sure what purpose you had in terms of mentioning "crypto" markets.  Why should we give any shits about shitcoins?  Do you not know we are talking about bitcoin?  Is there some kind of a need to use the term "crypto" while referring to discussions about bitcoin and perhaps you really meant to say something about bitcoin?  Probably there is no need to use the term crypto, since the use of the term "crypto" might have been meant to talk beyond bitcoin, but you did not specify what you meant when throwing that term into the discussion.. so in some sense the use of the term crypto seemed to have had devolved the discussion into a kind of obscurity, vagueness and potentially misleading some of us in terms of what are we talking about here?  Do you believe that there is such a thing as "crypto" markets?  what kind of a product would I buy if I were buying into "crypto" markets?  Yeah, I know that people use such vague terms all the time, but it does not seem very helpful to refer to something like "crypto" without suggesting what is meant by such a term, especially when we had been talking about bitcoin.

Third:  when you say standard of living is volatile, you likely are referring to the ongoing debasement of various fiat currencies that may well be affecting a lot of ways that value is perverted.. or many times debased for regular folks.

[Chiomaobi]

[edited out]

This is your misconception. Emergency funds should never be invested in any investment.

The only way emergency funds should be used in terms of investment is if they happen to be excessive, and surely some folks might be labeling all of their extra funds as emergency funds, and part of their emergency funds might be reserves and/or float but they are labeling such as emergency funds.

So yeah there can be questions regarding how much emergency funds a person needs to build up.. and if someone is brand new to investing and brand new to consciously paying attention to building and maintaining an emergency fund, then the emergency fund might start out relatively small.. maybe just by coincidence normal people might keep a kind of float of 2-4 weeks of their expenses worth of extra cash that is kind of considered to be used for any any extra expenses that might come about.. but then once they start to invest into something like bitcoin, they realize that they are likely going to need to keep larger amounts, such as 3-6 months worth of emergency fund, but they are not necessarily going to get their emergency fund up to that size immediately, so they end up building up their bitcoin investment and their emergency fund at the same time.. and surely once they get their emergency fund up to a certain size (such as a minimum of 3 months), then they might begin to feel that they have more abilities to be aggressive in their BTC accumulations (adding to their BTC holdings) or even to use some of the excess (greater than 3 months amounts) for the purposes of investing into bitcoin or other kinds of purposes.. but yeah, if they are barely floating on keeping ONLY 3 months as emergency funds that are not touched for any reason except actual emergencies, they may well find that they are not keeping enough emergency funds since sometimes various expenses can come at the same time and quickly eat into such relatively lower level amounts of financial cushion... .so yeah in the end, there becomes more and more need to keep some funds in cash that never get touched because otherwise the depletion of such extra cash ends up putting the person closer and closer to having to dip into his bitcoin investment that might be at a time that is not at his own choosing.

You are right, keeping ONLY 3 months as emergency fund will eventually lead you to deep your hands into your Bitcoin investment, so as a long time investor in Bitcoin it it advised to always keep a very big emergency funds in other not to run dry as time goes on.
For me since am using the DCA method of accumulation when I get my salary I invest a particular percent to my Bitcoin then I remove a particular percent also for my emergency, reserve and float fund then I keep the rest for myself in running my day to day activities and settle some bills, I do this each time I take my salary and it has been working for me and making my Bitcoin accumulation journey so easy. So is better to make sure your emergency funds are more than enough so you won't find your self dipping into your Bitcoin investment there by destroying your investment.
I don't think I will ever stop funding my emergency, reserve and float funds anytime soon reasoning being that I don't know what kind of emergency that maybe coming in future so I need to make sure my kept funds can handle any kind of issues without me dipping into my investment.
Any one that those not have a strong emergency, reserves and float funds is in danger of selling of his entire investment one day.

If you earn bitcoins directly, you can save with bitcoins in an emergency fund. Very few people can earn bitcoins. If you don't earn bitcoins, if you do earn money, investing in an emergency fund or reserve fund to save bitcoins is a stupid thing to do.

I think that it is very weird to be failing refusing to consider reserves in terms of fiat, unless there are some folks who truly are able to spend all of their expenses in bitcoin.. or if maybe they have so much bitcoin that they are willing to just take the chances of keeping all of their value in bitcoin (presuming they earn in bitcoin), and so these seem to be less common kinds of circumstances, and there is a certain level of healthiness to considering holding and/or converting value into fiat.. since even if some expenses might be payable in bitcoin, they are likely calculated in terms of fiat.. so it does not even seem very realistic that we are considering some of the exceptional cases in which some few folks might completely earn in bitcoin and are able to spend in bitcoin and they just let bitcoin's volatility go where it goes, especially if they are already getting all of their income in bitcoin..

is better your reserves funds are kept on Fiat since is general accepted so as not to complicate things, from my little experience I think keeping your reserves in Bitcoin may complicate things for you Bitcoin is an investment platform. However like you said expect one is getting his or her salary in Bitcoin or especially if they are already getting all of their income in bitcoin.

[JayJuanGee]

[edited out]

This is your misconception. Emergency funds should never be invested in any investment.

The only way emergency funds should be used in terms of investment is if they happen to be excessive, and surely some folks might be labeling all of their extra funds as emergency funds, and part of their emergency funds might be reserves and/or float but they are labeling such as emergency funds.

So yeah there can be questions regarding how much emergency funds a person needs to build up.. and if someone is brand new to investing and brand new to consciously paying attention to building and maintaining an emergency fund, then the emergency fund might start out relatively small.. maybe just by coincidence normal people might keep a kind of float of 2-4 weeks of their expenses worth of extra cash that is kind of considered to be used for any any extra expenses that might come about.. but then once they start to invest into something like bitcoin, they realize that they are likely going to need to keep larger amounts, such as 3-6 months worth of emergency fund, but they are not necessarily going to get their emergency fund up to that size immediately, so they end up building up their bitcoin investment and their emergency fund at the same time.. and surely once they get their emergency fund up to a certain size (such as a minimum of 3 months), then they might begin to feel that they have more abilities to be aggressive in their BTC accumulations (adding to their BTC holdings) or even to use some of the excess (greater than 3 months amounts) for the purposes of investing into bitcoin or other kinds of purposes.. but yeah, if they are barely floating on keeping ONLY 3 months as emergency funds that are not touched for any reason except actual emergencies, they may well find that they are not keeping enough emergency funds since sometimes various expenses can come at the same time and quickly eat into such relatively lower level amounts of financial cushion... .so yeah in the end, there becomes more and more need to keep some funds in cash that never get touched because otherwise the depletion of such extra cash ends up putting the person closer and closer to having to dip into his bitcoin investment that might be at a time that is not at his own choosing.

You are right, keeping ONLY 3 months as emergency fund will eventually lead you to deep your hands into your Bitcoin investment, so as a long time investor in Bitcoin it it advised to always keep a very big emergency funds in other not to run dry as time goes on.

The mere fact that someone is keeping other kinds of funds that go beyond their 3 months of emergency funds does not necessarily mean that they would be calling the other kinds of funds the same thing.. so the emergency funds may well be something that is never touched outside of having an actual emergency, but there can be floating funds and reserves and/or various kinds of investments that are serving as reserves so that emergency funds never need to be touched and therefore the bitcoin investment might be amongst the last of any of the investments that would be touched.. depending on how any such person might structure his various kinds os extra cash.. some cash is very liquid and easy to get at and maybe other cash might take several days or even a week or two (or even a month or two) to get to in the event that the extra cash, cash equivalents or even other kinds of funds might be needed so that either emergency funds are not touched and more so that bitcoin investment would not be touched except at a time that is of complete choosing.

In other words there could be a lot more flexibility in other kinds of funds and whether emergency funds add up to ONLY 3 months of income/expenses or maybe they add up to 6 months of income/expenses, and so how much money that actually fits in that "emergency funds" category may well depend upon other kinds of funds that are available and also the size of the bitcoin investment... if the bitocin instment is fairly new and the bitcoin investment is less than 6 months worth of income/expenses, then maybe there is not as much importance in regards to the size of other kinds of cash cushion funds, but maybe as the bitcoin investment grows and grows, there may well be some needs and/or preferences to guard against any kind of need to draw upon it while it is still growing. and maybe still quite shy of reaching its target size whether that might be 10x income/expenses (in newer kinds of ways of assessing bitcoin value) or perhaps 20x to 30x income/expenses, which may well be more traditional ways of assessing value (though I personally consider that bitcoin value assessments do not necessarily need to be as high as traditional investment assessments in order to potentially still be able to outperform traditional investments in terms of achieving sustainable withdrawal rates).

For me since am using the DCA method of accumulation when I get my salary I invest a particular percent to my Bitcoin then I remove a particular percent also for my emergency, reserve and float fund then I keep the rest for myself in running my day to day activities and settle some bills, I do this each time I take my salary and it has been working for me and making my Bitcoin accumulation journey so easy.

Personally, I think that it is way better to figure out your expenses first prior to figuring out how much you have left for investing, yet of course, if you have a decent amount of discretionary income, you may end up arriving at similar results - even though for me it seems the better practice is to take care of your expenses prior to authorizing yourself to invest parts of your income that you are considering to be discretionary income... but hey whatever, do what you like and if what you are doing is working for you then so be it, but it seems more vulnerable for a mistake if you don't make sure your expenses are locked up prior to authorizing your investment amounts for the week/month or whatever might be your investment time periods.

So is better to make sure your emergency funds are more than enough so you won't find your self dipping into your Bitcoin investment there by destroying your investment.

Once you establish your emergency fund, then there not necessarily be any reason to think about it on a weekly and/or monthly basis since it will just be funds that are there and available that you hopefully will never need to touch.

I don't think I will ever stop funding my emergency, reserve and float funds anytime soon reasoning being that I don't know what kind of emergency that maybe coming in future so I need to make sure my kept funds can handle any kind of issues without me dipping into my investment.

Even though I consider emergency funds to be something that is built up and then never really touched, reserves and floats might bounce around a lot more, and so for example you could have floats and reserves serving as errors in your expense calculations of some of those funds might be dedicated towards specific kinds of things like buying on the dip or saving for a vacation or maintaining a going out to eat/entertainment fund, saving up for a new car/motorcycle/bicycle.. or whatever. and some of the funds might have some specific tag, or a timeline that it will be available and sometimes some of the reserve funds and float might get retagged or moved around to be used for something other than what it had originally been tagged/set aside for.

Any one that those not have a strong emergency, reserves and float funds is in danger of selling of his entire investment one day.

that is true.  The stronger our various extra cash funds, then the more likely we can afford to be more aggressive in our bitcoin investments, but we still might need to be careful if we end up dipping into reserves and/or float in order to buy more BTC, then we might end up having none of those extra funds except our emergency, so if an emergency ends up coming when we have exhausted our various other funds, we might find ourselves  in a position in which we might have had ended up overdoing it because we depleted various categories of funds that we had in place and working for us, even if some of them funds were not necessarily earning any income, yield or interest, they were still serving a purpose to keep us from having to even touch our emergency fund which may well be our last cushion prior to having to dip into our bitcoin investment.

If you earn bitcoins directly, you can save with bitcoins in an emergency fund. Very few people can earn bitcoins. If you don't earn bitcoins, if you do earn money, investing in an emergency fund or reserve fund to save bitcoins is a stupid thing to do.

I think that it is very weird to be failing refusing to consider reserves in terms of fiat, unless there are some folks who truly are able to spend all of their expenses in bitcoin.. or if maybe they have so much bitcoin that they are willing to just take the chances of keeping all of their value in bitcoin (presuming they earn in bitcoin), and so these seem to be less common kinds of circumstances, and there is a certain level of healthiness to considering holding and/or converting value into fiat.. since even if some expenses might be payable in bitcoin, they are likely calculated in terms of fiat.. so it does not even seem very realistic that we are considering some of the exceptional cases in which some few folks might completely earn in bitcoin and are able to spend in bitcoin and they just let bitcoin's volatility go where it goes, especially if they are already getting all of their income in bitcoin..

is better your reserves funds are kept on Fiat since is general accepted so as not to complicate things,

it becomes dangerous if your reserves are not in fiat; however part of the justification for diversification of assets is that when your BTC, and reserves have grown so much, sometimes there may be desires to keep some of that amount in something other than bitcoin and cash (and or cash equivalents), so there can become some desires to get into some other kinds of assets so that some of your reserves might be working for you, but they are not exactly in cash and they might not be easily available, maybe taking a bit of time to get to, but they might be something that is dipped into prior to dipping into bitcoin, especially if the person is still accumulating bitcoin or not quite in the stage to start to be drawing upon his bitcoin (which could be maintenance stage or maybe it is a form of accumulation stage that is not quite as aggressive as it had been in the earliest of years of accumulating BTC, such as maybe in the first 4-6 years or so).

from my little experience I think keeping your reserves in Bitcoin may complicate things for you Bitcoin is an investment platform. However like you said expect one is getting his or her salary in Bitcoin or especially if they are already getting all of their income in bitcoin.

There could be circumstances in which a person may have overly accumulated bitcoin and/or is receiving income in bitcoin such as providing goods, services or even engaged in mining in which a lot of income comes in bitcoin... yet I personally consider those situations to be be more exceptions rather than more common categories of folks who largely need to be considering ways to accumulate bitcoin and/or at the same time to make sure that s/he has a certain amount that s/he keeps in fiat in order to pay weekly/monthly expenses.

[Mayor of ogba]

Your asset base should be much higher than your investments if you intend to accumulate bitcoins until you have a decent stash. You can be overly aggressive in accumulating bitcoins but realistically not at the expense of all your wealth. That's why pricing each asset level separately is to ensure maximum utilization during the period of its need. The portion of your wealth that can go into investing in Bitcoin is a fraction of your income and it may take a long time for you to reach a decent size by following the normal process but consistently running it.

Agree with what you just said, when we invest, what we have to think about is how we manage our finances so that we don't get too high, we invest as much as possible, that's fine, but we have to remember, our remaining savings must be more than that we invest, because no matter how much investment is not necessarily profitable in an instant, it will definitely take a long time and be a long process, don't let all the savings we have be invested, wherever we want to take our daily needs, in the end we will end up going into debt first, so We have to balance it with our savings, don't let it exceed the limits of our own capabilities.

Leaving a little money for needs that we don't expect is of course very important because if we don't have these funds and choose to invest all the savings we have, of course this will make us unable to carry out investments well, because we cannot know the need for these funds. with certainty and if we don't have it when we need it, of course this will make us have to pay back what we have invested, both in terms of losses and profits. If it is in favorable conditions, of course this is certainly not a problem, but if the investment conditions we are in If you don't run it in good condition, of course you have to take it in a situation that is detrimental to you.

This is a step every investor must take to have a successful bitcoin accumulation journey. It is always important to make available emergency funds, reserve funds, and floats before we start accumulating bitcoin so that we can always solve our unforeseen problems whenever they arise, and sometimes we can buy the dip with reserve funds. But when we don't make provisions for all these funds, we will never have a successful bitcoin accumulation journey because we will sell our bitcoin investment one day to solve our unforeseen problems.

[laijsica]

Your asset base should be much higher than your investments if you intend to accumulate bitcoins until you have a decent stash. You can be overly aggressive in accumulating bitcoins but realistically not at the expense of all your wealth. That's why pricing each asset level separately is to ensure maximum utilization during the period of its need. The portion of your wealth that can go into investing in Bitcoin is a fraction of your income and it may take a long time for you to reach a decent size by following the normal process but consistently running it.

Agree with what you just said, when we invest, what we have to think about is how we manage our finances so that we don't get too high, we invest as much as possible, that's fine, but we have to remember, our remaining savings must be more than that we invest, because no matter how much investment is not necessarily profitable in an instant, it will definitely take a long time and be a long process, don't let all the savings we have be invested, wherever we want to take our daily needs, in the end we will end up going into debt first, so We have to balance it with our savings, don't let it exceed the limits of our own capabilities.

Leaving a little money for needs that we don't expect is of course very important because if we don't have these funds and choose to invest all the savings we have, of course this will make us unable to carry out investments well, because we cannot know the need for these funds. with certainty and if we don't have it when we need it, of course this will make us have to pay back what we have invested, both in terms of losses and profits. If it is in favorable conditions, of course this is certainly not a problem, but if the investment conditions we are in If you don't run it in good condition, of course you have to take it in a situation that is detrimental to you.

This is a step every investor must take to have a successful bitcoin accumulation journey. It is always important to make available emergency funds, reserve funds, and floats before we start accumulating bitcoin so that we can always solve our unforeseen problems whenever they arise, and sometimes we can buy the dip with reserve funds. But when we don't make provisions for all these funds, we will never have a successful bitcoin accumulation journey because we will sell our bitcoin investment one day to solve our unforeseen problems.

Most investors make this common mistake and forget to increase the amount of their reserve fund to store bitcoins. Being overly emotional and aggressive in investing and overbuying can sometimes be negative. But to be aggressive you have to look for bearish season which is a bit time consuming. Bearish season enters though with less durability and more bullish trend. Your investment success is largely dependent on buying dips if you can do so your profits can be high.

Unexpected problems may come in your life and for that it is important that you know adequate defensive mechanisms such as floating money and being moderately aggressive. But I prefer to be a bit aggressive in bearish season because in this bearish season there is some doubt about whether I will get more in future.

[Jewan420]

Most investors make this common mistake and forget to increase the amount of their reserve fund to store bitcoins. Being overly emotional and aggressive in investing and overbuying can sometimes be negative. But to be aggressive you have to look for bearish season which is a bit time consuming. Bearish season enters though with less durability and more bullish trend. Your investment success is largely dependent on buying dips if you can do so your profits can be high.

Unexpected problems may come in your life and for that it is important that you know adequate defensive mechanisms such as floating money and being moderately aggressive. But I prefer to be a bit aggressive in bearish season because in this bearish season there is some doubt about whether I will get more in future.

Bitcoin/Shitcoin investors should always remember that, emergency funds and reserve funds act as defenses. We all know the importance of defense. Defense protects us from various attacks and helps us to be aggressive. When you invest in Bitcoin, an emergency fund will act as your defense. As a result, you don't have to sell your invested bitcoins at a loss in an emergency. You will be able to meet your needs from the emergency fund. Reserve funds help to be defensive and offensive. A reserve fund helps to increase the amount of your investment and usage during times of need. When you accumulate more than the target amount in your reserve fund, you can invest it. It works as an aggressive approach to investing.

[Chiomaobi]

Your asset base should be much higher than your investments if you intend to accumulate bitcoins until you have a decent stash. You can be overly aggressive in accumulating bitcoins but realistically not at the expense of all your wealth. That's why pricing each asset level separately is to ensure maximum utilization during the period of its need. The portion of your wealth that can go into investing in Bitcoin is a fraction of your income and it may take a long time for you to reach a decent size by following the normal process but consistently running it.

Agree with what you just said, when we invest, what we have to think about is how we manage our finances so that we don't get too high, we invest as much as possible, that's fine, but we have to remember, our remaining savings must be more than that we invest, because no matter how much investment is not necessarily profitable in an instant, it will definitely take a long time and be a long process, don't let all the savings we have be invested, wherever we want to take our daily needs, in the end we will end up going into debt first, so We have to balance it with our savings, don't let it exceed the limits of our own capabilities.

Leaving a little money for needs that we don't expect is of course very important because if we don't have these funds and choose to invest all the savings we have, of course this will make us unable to carry out investments well, because we cannot know the need for these funds. with certainty and if we don't have it when we need it, of course this will make us have to pay back what we have invested, both in terms of losses and profits. If it is in favorable conditions, of course this is certainly not a problem, but if the investment conditions we are in If you don't run it in good condition, of course you have to take it in a situation that is detrimental to you.

This is a step every investor must take to have a successful bitcoin accumulation journey. It is always important to make available emergency funds, reserve funds, and floats before we start accumulating bitcoin so that we can always solve our unforeseen problems whenever they arise, and sometimes we can buy the dip with reserve funds. But when we don't make provisions for all these funds, we will never have a successful bitcoin accumulation journey because we will sell our bitcoin investment one day to solve our unforeseen problems.

You are right I will love to add that Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.
If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

[GigaBit]

Most investors make this common mistake and forget to increase the amount of their reserve fund to store bitcoins. Being overly emotional and aggressive in investing and overbuying can sometimes be negative. But to be aggressive you have to look for bearish season which is a bit time consuming. Bearish season enters though with less durability and more bullish trend. Your investment success is largely dependent on buying dips if you can do so your profits can be high.

Unexpected problems may come in your life and for that it is important that you know adequate defensive mechanisms such as floating money and being moderately aggressive. But I prefer to be a bit aggressive in bearish season because in this bearish season there is some doubt about whether I will get more in future.

Bitcoin/Shitcoin investors should always remember that, emergency funds and reserve funds act as defenses. We all know the importance of defense. Defense protects us from various attacks and helps us to be aggressive. When you invest in Bitcoin, an emergency fund will act as your defense. As a result, you don't have to sell your invested bitcoins at a loss in an emergency. You will be able to meet your needs from the emergency fund. Reserve funds help to be defensive and offensive. A reserve fund helps to increase the amount of your investment and usage during times of need. When you accumulate more than the target amount in your reserve fund, you can invest it. It works as an aggressive approach to investing.

Yes, reserve fund can play the biggest role in your needs. Every investor needs to have it. If an investor puts all of his money into investments, he may need some money at any time. Moreover, everyone may need money in case of accident or any emergency. If an investor is able to build a reserve fund then he will be able to control himself from making unwanted losses. Reserve funds also make an investor's investment safe as it relieves the risk of managing day-to-day expenses. Investors who do not have reserve funds act on fear and panic in investing.

[adultcrypto]

You are right I will love to add that Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.
If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

Seems we have a little difference in our ways of viewing the emergency funds, and you are obviously viewing it from the negative aspect only which involved threat to life. This is not what I understand the emergency funds is meant for. I see emergency fund as money kept for unplanned events not covered in personal planning of expenditure. Emergency funds can include unplanned visit of a relative, support to a friend that is in desperate need of help, buying something that becomes important which was not initially important, indeed it could come in different ways and not only when threat to life is involved. Loss of job which is in other words loss of the source of income is a different ball game because in such situation, the emergency funds may not be able to cover your needs such as rent, feeding, medical, etc and still allow you continue to DCA as you were doing when you had the job. So this will require a different plan all together until you secure another source of income.

[Taskford]

You are right I will love to add that Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.
If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

Seems we have a little difference in our ways of viewing the emergency funds, and you are obviously viewing it from the negative aspect which involved threat to life. This is not what I understand the emergency funds is meant for. I see emergency fun unplanned events not covered in personal planning of expenditure. Emergency funds can include unplanned visit of a relative, support to a friend that is in desperate need of help, indeed it could come in different ways and not only when threat to life is involved. Loss of job which is in other words loss of the source of income is a different ball game because in such situation, the emergency funds may not be able to cover your needs such as rent, feeding, medical, etc and still allow you continue to DCA as you were doing when you had the job. So this will require a different plan all together until you secure another source of income.

I guess it will matter depends on your needs and as long as you didn't use it on things that unwanted like buying your unnecessary need using your emergency funds then everything is fine. But for me I usually separate some money intended for emergency cases like medical needs,losing my job and I need some funds to cover my expenses on the days when I'm seeking for new job or if I experience a heavy income loss and need some money to get up on this unfortunate situation.

So people should always think that having a emergency fund is important and they should not always think about their investment since its like their safety net when there's unfortunate changes that they didn't imagine will happen to them.

[Chiomaobi]

You are right I will love to add that Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.
If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

Seems we have a little difference in our ways of viewing the emergency funds, and you are obviously viewing it from the negative aspect which involved threat to life. This is not what I understand the emergency funds is meant for. I see emergency fun unplanned events not covered in personal planning of expenditure. Emergency funds can include unplanned visit of a relative, support to a friend that is in desperate need of help, indeed it could come in different ways and not only when threat to life is involved. Loss of job which is in other words loss of the source of income is a different ball game because in such situation, the emergency funds may not be able to cover your needs such as rent, feeding, medical, etc and still allow you continue to DCA as you were doing when you had the job. So this will require a different plan all together until you secure another source of income.

I'm not viewing it from the negative aspect the reason I said what I said is because a lot of people don't know the main reason of having emergency, reserves and float funds.
From your examples am of opinion that emergency funds should not be used for those things you mentioned that is why we have reserved and/or float funds your reserved funds should be able to handle all those things. For me I can go for long without touching my emergency funds because of my reserved and/or float funds, emergency funds should not be used inappropriately if not it will affect your accumulation journey so it is advised to have your reserved and/or float funds in a good condition too.

When you have a good emergency, reserves and float funds it can help you when you lose your job, that is why it is always advised to have a good emergency funds make it strong when you make it strong it will carry you till you find another job even if you see a job that the pay is not as good as your former you can still manage it and with the support of your emergency funds you will be alright till you find a bitter job, so even if you don't continue your accumulation journey but it has prevented you from dipping into your Bitcoin investment and that is the main reason of having an emergency funds.

[adultcrypto]

You are right I will love to add that Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.
If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

Seems we have a little difference in our ways of viewing the emergency funds, and you are obviously viewing it from the negative aspect which involved threat to life. This is not what I understand the emergency funds is meant for. I see emergency fun unplanned events not covered in personal planning of expenditure. Emergency funds can include unplanned visit of a relative, support to a friend that is in desperate need of help, indeed it could come in different ways and not only when threat to life is involved. Loss of job which is in other words loss of the source of income is a different ball game because in such situation, the emergency funds may not be able to cover your needs such as rent, feeding, medical, etc and still allow you continue to DCA as you were doing when you had the job. So this will require a different plan all together until you secure another source of income.

I guess it will matter depends on your needs and as long as you didn't use it on things that unwanted like buying your unnecessary need using your emergency funds then everything is fine. But for me I usually separate some money intended for emergency cases like medical needs,losing my job and I need some funds to cover my expenses on the days when I'm seeking for new job or if I experience a heavy income loss and need some money to get up on this unfortunate situation.

So people should always think that having a emergency fund is important and they should not always think about their investment since its like their safety net when there's unfortunate changes that they didn't imagine will happen to them.

Maybe we are from.different country with different system so here we save for loss of job in different ways because getting a job is pretty difficult here due to the shrinking of economy we are experiencing as a result of bad leadership. If you lose your job, you might even wait for as far as six months to twelve months before you get a new job because the demand is far higher than the available jobs. To save for cases like loss of job, people open different businesses which will serve as complimentary to their salary, others might buy stocks but some of us that know about Bitcoin can prepare for such scenarios by buying bitcoin separately from our long-term hold, this collection being set to be liquidated incase there is loss of job.

There is also government policy in country that requires all employees and employers to contribute 10% each of the employees salary to a separate account, dame being accessible upon retirement of if the employee is unable to secure another job with four months of losing his job. This is the reason I was thinking that loss of job is a different thing all together.

[bestcoins1]

This is a step every investor must take to have a successful bitcoin accumulation journey. It is always important to make available emergency funds, reserve funds, and floats before we start accumulating bitcoin so that we can always solve our unforeseen problems whenever they arise, and sometimes we can buy the dip with reserve funds. But when we don't make provisions for all these funds, we will never have a successful bitcoin accumulation journey because we will sell our bitcoin investment one day to solve our unforeseen problems.

Certain problems will always exist in everyone's life, but not all problems have to be solved with money because there are also problems that do not need to be solved using money. And in terms of investors' focus, as people who are quite fond of investing in Bitcoin, of course they must have an emergency fund that will be allocated to solving certain problems.

So the reserve funds and the funds that are being used can actually be used for the same thing with the same goal, namely to buy Bitcoin when the price is falling with the reserve funds and also continue to buy Bitcoin with the funds that are being used for investment. Because both can be used for no different purposes and apart from that the mental level and trust in Bitcoin must also continue to increase over time so that an investor's purchasing power can often increase because of this.

[Bravut]

You are right I will love to add that Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.
If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

Seems we have a little difference in our ways of viewing the emergency funds, and you are obviously viewing it from the negative aspect which involved threat to life. This is not what I understand the emergency funds is meant for. I see emergency fun unplanned events not covered in personal planning of expenditure. Emergency funds can include unplanned visit of a relative, support to a friend that is in desperate need of help, indeed it could come in different ways and not only when threat to life is involved. Loss of job which is in other words loss of the source of income is a different ball game because in such situation, the emergency funds may not be able to cover your needs such as rent, feeding, medical, etc and still allow you continue to DCA as you were doing when you had the job. So this will require a different plan all together until you secure another source of income.

I guess it will matter depends on your needs and as long as you didn't use it on things that unwanted like buying your unnecessary need using your emergency funds then everything is fine. But for me I usually separate some money intended for emergency cases like medical needs,losing my job and I need some funds to cover my expenses on the days when I'm seeking for new job or if I experience a heavy income loss and need some money to get up on this unfortunate situation.

So people should always think that having a emergency fund is important and they should not always think about their investment since its like their safety net when there's unfortunate changes that they didn't imagine will happen to them.

Emergency funds is surely a safety net as you said, aside investing in Bitcoin it is a wise decision to have or build an emergency funds; simply put an unforeseen event wether good or bad. Emergency can be anything which was not in your original plan, so while accumulating we make provision for such so as not to tamper with our holdings which will delay the accumulation process but to maintain a steady speed as we accumulate.
Having a reserve funds, emergency funds is not a complicated action to take, just as we DCA so if we apply same discipline we can keep building our emergency, reserve funds also for the betterment of our Financial life.  Reserve and emergency funds can also in another way help us lump sum or increase our holdings/ DCA amount overtime or buying the price (we perceive as Dip) even as we are accumulating, her merits is numerous.
But before a newbie start accumulating it is always advisable to have built an emergency funds at least 3-6 months.

[Kliss]

You are right I will love to add that Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.
If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

Seems we have a little difference in our ways of viewing the emergency funds, and you are obviously viewing it from the negative aspect which involved threat to life. This is not what I understand the emergency funds is meant for. I see emergency fun unplanned events not covered in personal planning of expenditure. Emergency funds can include unplanned visit of a relative, support to a friend that is in desperate need of help, indeed it could come in different ways and not only when threat to life is involved. Loss of job which is in other words loss of the source of income is a different ball game because in such situation, the emergency funds may not be able to cover your needs such as rent, feeding, medical, etc and still allow you continue to DCA as you were doing when you had the job. So this will require a different plan all together until you secure another source of income.

I'm not viewing it from the negative aspect the reason I said what I said is because a lot of people don't know the main reason of having emergency, reserves and float funds.
From your examples am of opinion that emergency funds should not be used for those things you mentioned that is why we have reserved and/or float funds your reserved funds should be able to handle all those things. For me I can go for long without touching my emergency funds because of my reserved and/or float funds, emergency funds should not be used inappropriately if not it will affect your accumulation journey so it is advised to have your reserved and/or float funds in a good condition too.

When you have a good emergency, reserves and float funds it can help you when you lose your job, that is why it is always advised to have a good emergency funds make it strong when you make it strong it will carry you till you find another job even if you see a job that the pay is not as good as your former you can still manage it and with the support of your emergency funds you will be alright till you find a bitter job, so even if you don't continue your accumulation journey but it has prevented you from dipping into your Bitcoin investment and that is the main reason of having an emergency funds.

Emergency funds are sum of money set aside to cover unexpected expenses of financial emergencies or other unforseen circumstances. This funds are meant for emergencies not for discretionary spending or investment they are separated and can be accessible easily. Not invested in bitcoin or other volatile assets, but emergency ensures that you stay steady in your bitcoin investment journey uninterrupted when there are downturns or fluctuation. It all about being prepared for the unexpected without disrupting you bitcoin accumulation. We invest with our discretionary income and Reserved funds provides opportunity to increase our holdings and take advantage of perceived dip in the market while continuing accumulating without tampering with your emergencyfunds.

[Frankolala]

You are right I will love to add that Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.
If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

Seems we have a little difference in our ways of viewing the emergency funds, and you are obviously viewing it from the negative aspect only which involved threat to life. This is not what I understand the emergency funds is meant for. I see emergency fund as money kept for unplanned events not covered in personal planning of expenditure. Emergency funds can include unplanned visit of a relative, support to a friend that is in desperate need of help, buying something that becomes important which was not initially important,

This is the reason why you need a reserve funds and floats. Reserve funds is the backup to your emergency funds so that you do not tamper with your emergency funds until an emergency occurs. Reserve funds or float can be used to take care of what you mentioned above.

indeed it could come in different ways and not only when threat to life is involved. Loss of job which is in other words loss of the source of income is a different ball game because in such situation, the emergency funds may not be able to cover your needs such as rent, feeding, medical, etc and still allow you continue to DCA as you were doing when you had the job.

This is where your emergency funds comes to play its role. This is why your emergency funds should be up to 3-6 months of your monthly income put together, and it should be in cash to enable it sustain you during a very difficult or critical times like losing your job. When you have lost your job, you will be surviving with your emergency funds until you get a new job and because you know that you will not want to sell part of your bitcoin, you will get a job fast to make sure that your emergency funds does not dry up. When you have gotten a job, you can start refilling back your emergency funds gradually from part of your discretionary income.

If you have lost your job, you will not be able to DCA again because they is no discretionary income. All these should be put into consideration on you are on your bitcoin journey to avoid confusion when such situation befall you, if not you will sell your bitcoin forgetting that you can manage with your emergency funds when you have lost your job before you get a new one.

[GigaBit]

This is a step every investor must take to have a successful bitcoin accumulation journey. It is always important to make available emergency funds, reserve funds, and floats before we start accumulating bitcoin so that we can always solve our unforeseen problems whenever they arise, and sometimes we can buy the dip with reserve funds. But when we don't make provisions for all these funds, we will never have a successful bitcoin accumulation journey because we will sell our bitcoin investment one day to solve our unforeseen problems.

Certain problems will always exist in everyone's life, but not all problems have to be solved with money because there are also problems that do not need to be solved using money. And in terms of investors' focus, as people who are quite fond of investing in Bitcoin, of course they must have an emergency fund that will be allocated to solving certain problems.

So the reserve funds and the funds that are being used can actually be used for the same thing with the same goal, namely to buy Bitcoin when the price is falling with the reserve funds and also continue to buy Bitcoin with the funds that are being used for investment. Because both can be used for no different purposes and apart from that the mental level and trust in Bitcoin must also continue to increase over time so that an investor's purchasing power can often increase because of this.

Yes, there is no end to human problems, especially financial problems. This problem can occur at any time and most likely. And this is why we can face financial problems at any time.

The purpose of holding reserve funds is so that an investor has no barriers to accumulating bitcoins. If I buy bitcoins with reserve funds there is no problem but that fund can turn into loss at any time. As the value objective of this fund is to back up in the long term and if my assets decrease during that time then I feel there is no benefit in that fund. We can keep a reserve fund to collect uninterrupted bitcoin holdings.

[Jewan420]

You are right I will love to add that Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.
If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

Seems we have a little difference in our ways of viewing the emergency funds, and you are obviously viewing it from the negative aspect only which involved threat to life. This is not what I understand the emergency funds is meant for. I see emergency fund as money kept for unplanned events not covered in personal planning of expenditure. Emergency funds can include unplanned visit of a relative, support to a friend that is in desperate need of help, buying something that becomes important which was not initially important, indeed it could come in different ways and not only when threat to life is involved. Loss of job which is in other words loss of the source of income is a different ball game because in such situation, the emergency funds may not be able to cover your needs such as rent, feeding, medical, etc and still allow you continue to DCA as you were doing when you had the job. So this will require a different plan all together until you secure another source of income.

If you use the emergency fund to address the issues you mentioned, you may face losses. All these things you can spend from the reserve fund. Emergency fund should be used only when you/someone in your family is in doubt or you are in danger of losing everything. Especially emergency funds will be most needed in the medical field. The things you mentioned, helping a friend in danger, sudden arrival of a relative, buying essentials are not things that should be spent from the emergency fund. You can spend on all these things from reserve fund or floating fund, I think that would be best. After you spend from the emergency fund on any of these things, if you suddenly meet with an accident, the emergency fund can become a crisis. As a result, you will have no choice but to spend from your investment. Thus, you can harm your investment by spending unnecessarily from the emergency fund. So you don't spend from the emergency fund unless someone's life is in doubt.