Growing both your Bitcoin and backup funds.

[dzungmobile]

Now, if you invested in Bitcoin but when an emergency arises you need to convert it, that means you invested more than you can afford to lose. If you invested in Bitcoin and after a couple of years you need to liquidate it even with a loss, that also means you have invested more than you can afford to lose.

How much can you afford to lose? That amount which you can forget forever after you invested it.

Investment should be done with money that is spare money and beyond that, an investor has other money reserves to use, for other things beyond investment such as for emergencies like you said.

Spending all money for investment is risky and it's no longer a story of afford to lose or not afford to lose, when it comes to emergency, you need to sell your bitcoin at any price, even -50 or lower than your accepted price. It's not a good choice if you think of other options like knocking doors of relatives, friends to borrow money for emergency.

Invest like this is not wisely in personal financial management and it's not recommended.

[Dakcrypto]

Perhaps with our good income you can split out your investment percentage and you would still be very much okay.
Emergency funds is a very important thing that an investor should always ut in place because it's more like the ground to survive every situation, people who don't consider it always fall victim of bankruptcy.
if eventually one has put in some stash into bitcoin it's left for them to be patient with their investments especially in bitcoin because bitcoin is not a Ponzi scheme or get rich quick investment.

Other people are also able to do their Bitcoin investment as emergency funds, for example some people who bought some cheap Bitcoins before and if they will see it, they have profits already but instead, they keep holding it for some reason and some people like me, I already tried it too. I am able to sell some of my Bitcoins before for some emergency cases even I have separate emergency fund.

That's true tho. but this actions mostly taking out of ignorance.
you might be favoured with the actions because you had no issues financially in that process or during those times but if there was an unforeseen circumstances that had took place while most of your assets where in BTC already you would have noticed more of the value of emergency funds before investments.

It's more like a backbone to your investment.

[yhiaali3]

I agree with you, you have a good point. In general, this is true. If you do not have spare funds, it is difficult for you to continue with the Bitcoin DCA strategy  for a long time, because you will be forced to sell some Bitcoin in the event of any financial emergency.

I have experience with this. I was following the DCA strategy for a few months and I accumulated a good amount, but in the end I was forced to sell a large portion of this amount due to some difficult financial circumstances. It is true that I made some profits in the sale, but I sold much less than my target.

[kryptqnick]

Patience is a lesson Bitcoin teaches very well to those willing to keep going. A bear market can last for 2-3 years, and things can keep getting worse until they finally start to get better. And sometimes when they get better in terms of the price, you get crazy transaction fees, which once again require you to be patient and wait.
As for backup funds, some should be in a relatively stable fiat like the USD, but I believe it's okay to use Bitcoin as backup funds and, as the op puts it, dip hands into BTC investment when there's an emergency.

[tabas]

With backup funds means like you should have a reserve in terms that you need to spend money for some unexpected happening. This is what mostly being called emergency funds. While the logic of what OP has said is true. I have seen people that I invest together at the same timeframe but then they're able to lose their grip through their holdings because they were in need of money and they have no other place to pull money but to sell their Bitcoin holdings even if they don't want to. So, with that, it's very important to have that emergency funds just in case that unforeseen financial challenge comes to you.

[Z-tight]

I have experience with this. I was following the DCA strategy for a few months and I accumulated a good amount, but in the end I was forced to sell a large portion of this amount due to some difficult financial circumstances. It is true that I made some profits in the sale, but I sold much less than my target.

Don't you think the problem is that you invested most of your money into a long term asset, if you do it this way, you'd frequently be forced to sell when you do not want to, that's why i have said in this thread already, that i recommend keeping part of your funds in liquid assets that you can easily convert to cash.

Take note as well that BTC isn't the only thing you can invest in for the long term, there are other assets you can diversify into. Finally, even if fiat is inflationary, you should also have some money in your bank account for quick spending.

[Zlantann]

I have experience with this. I was following the DCA strategy for a few months and I accumulated a good amount, but in the end I was forced to sell a large portion of this amount due to some difficult financial circumstances. It is true that I made some profits in the sale, but I sold much less than my target.

Having an emergency fund is important for long-term holdlers because it helps to avoid selling your Bitcoin prematurely. But keeping Bitcoin is not a do-or-die affair. Some situations will force one to sell his coins because he really needs the money. I don't think there is a need to regret selling your coins because you need the funds to solve a pressing need. People were forced to sell because of health issues or loss of jobs. My mother will always that it is better to sell an asset to solve a problem than to borrow.

I agree with you that sound financial management requires a balance between investing and building emergency or backup funds. Investments like Bitcoin can be tempting to try for quick savings, but maintaining financial stability and security through backup funds is crucial. This approach may slow down savings, but it provides a safety net in times of emergency, ensures long-term success and protects against investment volatility. Patience and backup funds are key to a sustainable and safe investment strategy.

When people see the volatility of Bitcoin, they just assume that they can invest everything they own and get a quick return from investment. They become disappointed since the Bitcoin price is not predictable. Out of financial pressures they end up selling the coins at a loss. Having a long-term investment mentally is important in Bitcoin Investment.

[Dr.Bitcoin_Strange]

If someone has a sustainable source of income, they can always allocate some percent of their income into Bitcoin investments and also allocate some for emergency funds. That's the right way of investing in Bitcoin because if an individual doesn't have a sustainable source of income, he or she might not be able to hold their Bitcoin investment for a long time, but if you have a source of income, you can as well save some money even while investing in Bitcoin. 

Some people who don't have an emergency fund can still get money from their other source of income without touching their Bitcoin investment. Unless it's a kid who is investing using the money he or she gets from parents or guidance, The kid might not spend their Bitcoin too because, any time they have any need, their parents can provide it for them. 

[mirakal]

The logic behind this is wrong, because nearly all of your money shouldn't be in BTC, for the rest of it to be called a 'backup' fund. There are other investments and assets you can purchase, gold, real estate, and many more you can find; your funds should be well diversified into different assets like these, alongside BTC. However, like you said, it is important to always have liquid asset, so you can live and solve necessary problems without liquidating your long term assets.

Very well said. Even if we always address Bitcoin as the highest ROI investment, still the fact remains that its future is left uncertain and unpredictable. Trusting all our funds into bitcoin will bring a lot of risks, thus losing everything if we end up our bitcoin investment unsuccessful. The only way we can grow our back up funds is to diversify our investments and not just focus on a single source of profits. That way, we won't face financial crisis in the future.

[yhiaali3]

Don't you think the problem is that you invested most of your money into a long term asset, if you do it this way, you'd frequently be forced to sell when you do not want to, that's why i have said in this thread already, that i recommend keeping part of your funds in liquid assets that you can easily convert to cash.

Take note as well that BTC isn't the only thing you can invest in for the long term, there are other assets you can diversify into. Finally, even if fiat is inflationary, you should also have some money in your bank account for quick spending.

Yes, of course, the problem is that I invested almost all of my money in long-term holding and did not leave some reserves, so I had to sell some of it to meet some necessary financial needs. I was hoping that it would reach the desired goal before I had to sell it, but unfortunately that is what happened.

I also agree with you that we should keep a cash or a bank account for quick spending. This is very necessary because we need to spend some money on monthly expenses.

[Blitzboy]

Smart move on keeping that backup fund. As you are aware, "don't put all your eggs in one basket." That's the name of the game here. This isn't about rapid riches. It's about keeping strong, clinging tightly, and surviving the storm. Like anything else, Bitcoin ups and downs. The real victors, though, are those who remain calm under trying circumstances.  They stick to their strategy since they have one

That's how you should be using your backup money. You are providing yourself with a safety net so you may weather difficult times and emerge stronger on the other side. Though it will take a bit more time to see those large returns, trust me; it is well worth it. This concerns laying a strong basis and a safe future. And you win in this way as well

[Bitstar_coin]

Personally I have experience first hand how impatient can make you lose big time in this space. I had the opportunity to finally make it big but my lack of patience denied me the opportunity. The feeling sucks no doubt when you look back at what would have been.
Experience is the best teacher,  this days, I tried to hodl certain projects I see potentials in them, dump the ones with no prospect and most of all I tried to build my portfolio with potential coins.
It is also important to have a backup funds for stormy market like what we are currently experiencing. Situations like this in most cases are blessing in disguise when the market fully recovered.

[dezoel]

Personally I have experience first hand how impatient can make you lose big time in this space. I had the opportunity to finally make it big but my lack of patience denied me the opportunity. The feeling sucks no doubt when you look back at what would have been.
Experience is the best teacher,  this days, I tried to hodl certain projects I see potentials in them, dump the ones with no prospect and most of all I tried to build my portfolio with potential coins.
It is also important to have a backup funds for stormy market like what we are currently experiencing. Situations like this in most cases are blessing in disguise when the market fully recovered.

At this time the market is prone to volatility, in such a time it is better to do DCA or for those who do short-term trading it is the best opportunity to buy coins and sell back to get a good profit but the market is running fast and I don't think it is better to hold now because the market may fall further so it is better to either do DCA or short-term trading.

Building a portfolio with the best coins is a good strategy but for long-term trading or long-term holding, I trust BTC the most and I am not in favour of holding altcoins for a long time. Yes, because of the way the market is going right now if the market goes down, alternative coins will go down a lot.
So if you are buying alternative coins then my suggestion is to do DCA if you are holding, if you are doing short-term trading then this is a good opportunity for you to buy and sell when it goes up a little and secure some profits.

[Sonia_123]

Patience in anything we do always gives a good result, in investing in Bitcoin, you don't need to rush,as a newbie you need to rush to buy your investment because you might become stocked since it is your first time,you need to study the process and have a fixed income that will keep you going ,a newbie does not understand that there need to be a backup and reserve funds if you want to successfully continue in the investment. Your backup/emergency funds help you to buy more when there is a dip in price or when you are stocked with financial challenges,so you can fall back to your emergency/ backup funds to accumulate your Bitcoin account for a long term so that it will not affect or have a break in hodlin .

[KeenanEl19]

Investment should be done with money that is spare money and beyond that, an investor has other money reserves to use, for other things beyond investment such as for emergencies like you said.

Spending all money for investment is risky and it's no longer a story of afford to lose or not afford to lose, when it comes to emergency, you need to sell your bitcoin at any price, even -50 or lower than your accepted price. It's not a good choice if you think of other options like knocking doors of relatives, friends to borrow money for emergency.

Invest like this is not wisely in personal financial management and it's not recommended.

I myself do not agree that all the money we have is put into bitcoin investments, because for this type of investment there are strategies that can be done without having to invest all the money you have. Apart from that, to make investments we have to pay attention to other things such as reserve funds, such as funds for emergencies which are not possible to handle emergencies, we have to sacrifice the investments made, especially if the results are not satisfactory enough or make a loss.

Even borrowing money from friends will not guarantee success, we know that everyone is sensitive to money, let alone other people, even brothers and sisters, sometimes it is difficult to help each other when it comes to financial problems, so we ourselves have to do everything well, try not to involve other people in the process. us, even though there are definitely people involved, make sure that person helps us fully.

[Casdinyard]

A lot of people especially my follow newbies have already started there Bitcoin accumulation journey  before having the idea of securing there Bitcoin investment by having a backup funds such as emergency, reserve and/or float funds and they are now confused on what to do and to be honest I was among this category of people, some people immediately they get this knowledge or idea they pause there Bitcoin accumulation and start building there back up funds also known as emergency, reserve and/or float funds and is okay, but one can still be building his Bitcoin investment and also his back up funds at same time, the only thing he needs to do is cut the percentage he was investing on his Bitcoin and then channel some to his back up funds.

This is what I have been doing ever since I got the idea and it has been working perfectly well for me and it those not affect me in anyway, it is very important to have a backup funds in other to secure your Bitcoin investment there are two things I believe one needs to succeed in Bitcoin investment which are.

1. Patience.

2. Backup funds.

Without having patience to hodl for a long term you won't make it that big and sometimes you will end up losing money but if you are patient enough to hodl for long term then you will definitely reap big.
And without a Backup funds you will easily be tempted to dip hands into your Bitcoin investment when ever you have emergency or problem and you are not with cash but when you have a backup funds it will help you in times of emergency or problem.

So it is very important to protect your investment, especially investments as volatile as Bitcoin, to avoid unnecessary losses. So it will be a very good move to build your backup funds, while contemporaneously building your Bitcoin, although it may slow down your accumulation speed and may take a bit longer to reach your financial goals, however it's all good as long as your backup funds are being built gradually and strong, because the backup funds are just as important as the investment itself. However, it's more preferable engaging in a slow but steady accumulation with a strong financial backup, than being aggressive with one's accumulation with no strong financial backup which will later lead to one's down fall.

It's easy to say that you should do one first before the other especially if you have the innate capacity of being able to do such. It's hard when you're put in a situation where you can only make a choice out of the two. For most people, especially those who are still new to the bitcoin industry and cryptocurrency world they are faced with such choices cause at the end of the day, they wanna claim a stake at having a millionaire-maker in their portfolio, but at the same time, it's not that bad to think that maybe someday bitcoin might flop and when that happens they wouldn't have such backups.

I could still remember when I was first starting in the bitcoin industry. I didn't even have a financial plan or whatever. I took a major risk and figured that going for money makers at this early stage in my journey would work better than having to save money for when rainy days come. And while I ended up losing it all anyway a few years ago, I was able to earn it back thanks to the knowledge and the lessons I learned in the past. I'm telling this so you know that I had the privilege of still being able to commit mistakes and not lose it all. Some of us don't.

Do not persecute nor belittle people who chose bitcoin over having savings, or vice versa. To them that is the most sensible decision given their circumstances. Support them at the very least.

[DaNNy001]

Patience is a lesson Bitcoin teaches very well to those willing to keep going. A bear market can last for 2-3 years, and things can keep getting worse until they finally start to get better. And sometimes when they get better in terms of the price, you get crazy transaction fees, which once again require you to be patient and wait.
As for backup funds, some should be in a relatively stable fiat like the USD, but I believe it's okay to use Bitcoin as backup funds and, as the op puts it, dip hands into BTC investment when there's an emergency.

We can actually say patience is one of the attributes of a true Bitcoin holder because if you are not patience especially when you have some funds saved up in Bitcoin then the final results to your savings would probably be a messy one and I relate this to what you just said about how long the bear market can actually stay and so having an emergency funds would go a long way too because it would save you the stress of tempting with your coins because believe it or not #bitcoin.is.here.to.stay.

[Doan9269]

You can have your asset in bitcoin and still have your backup fund in this same bitcoin, the only difference from the two will now be on where you will hold them, you can make use of a cold storage for your bitcoin holdings for it to grow as an asset while the backup fund can be held on an exchange whereby you can easily exchange it for fiat when needed at any time, this one on the exchange will be as little as something you can afford to take risk on, since its not your major investment in bitcoin.

[dzungmobile]

I myself do not agree that all the money we have is put into bitcoin investments, because for this type of investment there are strategies that can be done without having to invest all the money you have.

I didn't recommend go to fully with Bitcoin investment, use all money for investment in Bitcoin. I never said this!

Investment is risky so is Bitcoin investment. You must reserve money for other things, not only spend all your money for investment. Emergency will need money and you must have it available to use. You can diversify your investment portfolio, but I don't advice to do it to altcoins that are weak, lack of solid idea and dedication of project, developer team, hence can die easily in bear market.

About altcoin deaths

Apart from that, to make investments we have to pay attention to other things such as reserve funds, such as funds for emergencies which are not possible to handle emergencies, we have to sacrifice the investments made, especially if the results are not satisfactory enough or make a loss.

Things begin to be more complicated, that is not recommended too.

But if you want to complicate the procedure, go ahead with some tools.
https://www.worldgovernmentbonds.com/

[Bravut]

Well said, OP. Emergency funds is crucial while investing in Bitcoin in other to be balanced and not sell off your Bitcoin when you're not suppose to, but I believe that even before you invest in Bitcoin this is a necessary financial knowledge one should have.

Investing in Bitcoin doesn't mean you gonna risk everything, or become very aggressive where you don't pay attention to other areas of your life and finances, Jobs.. we should all understand that investment is all about calculated risk, lets not allow our expectations consume us.
Have a plan and be disciplined as you invest and not being pathetic in the name of investment.