Emergency funds:
Before going into long-term bitcoin investment you need to save for emergencies.
When you have an emergency funds it helps you settle emergency issues without dipping into your investment.
5 years ago I invested on on a certain cryptocurrency. However I also was saving for something that was not too important, then I had an emergency which I needed to sort out, my only options was either to sell off my crypto investment or dip into the savings I was doing for something that was not important to me at that point in time, all I did was dip into my savings and left my investment from that day I saw the need for an emergency fund.
A lot of people don't know the importance of building and maintaining an emergency fund, reserves and a float when it comes to Bitcoin investment, because without these things, ones financial stability is never ensured, especially for individuals with limited financial resources.
It'll be no different from using one's Bitcoin holdings as a form of trading or gambling because whenever an emergency arises, they'll always dip into their Holdings which will definitely lead to depletion of funds, rather than building it.
The availability of Emergency funds, reserves and float gives one a form or security whenever unexpected expenses, financial shock and emergencies surfaces. This approach makes sure that one's basic needs are met, thereby minimizing the possibilities of dipping into one's Investments.
In order for one's Bitcoin investment to grow significantly, there's need for one to always have a very solid financial foundation because the absence of a solid foundation would definitely lead to depletion of investment and could often hinder the potential for long-term financial success.
It's also worth noting that having an emergency fund, reserves and float is just as essential as the investment itself because without it, there wouldn't be any investment to start with, because surely, emergencies will occur and you'll always sort them out.