I have seen in my acquaintances that the mistake they make the most and the mistake that brings them back to the same place over and over again is to make emergency money and investment money the same thing. Then when the price drops a little, they cry
, said Scam, The market is over
, I won’t buy anymore, If you don’t sell now, you will loss . These kind of more dramas we can see
. The reality is that it’s not about Bitcoin, but the mistake in using your wrong fund that is killing your investment . If you make emergency money an investment, you will not be an investor but a forced seller, right at the worst possible time.
Emergency money means money to live on emergency condition . When illness, job or income loss, sudden expenses in the family come, the market will not stop for you. Emergency money has to be kept in a place where it can be accessed immediately then the risk is lower possible, and your sleep will not lost at night
. If you put that money in bitcoin, it is no longer an emergency fund, it becomes a forced-sell waiting fund. Then the market dips, and at the same time the cost of emergency comes, what will you do?
Sell. And sell at a time when selling is most harmful. That's why I say, volatility doesn't destroy your economic condition, investing with the wrong money kills your financial ability.
Now investment money is a different thing. This is your discretionary income that survives by meeting all necessary expenses. This money is not money that you will need next month. This is money that you can't touch for 4-10 years. If you really want to invest in Bitcoin, then first decide "Can I lock this fund in for a few years?" If you can't, the problem is not with Bitcoin, problem is in your cash flow setup. Investors don't think about what will happen if the price drops tomorrow.
In our country, this mistake is even more acute, because income is uncertain, inflation is on the rise, government support is low, as a result, many people save Bitcoin as an emergency backup, or as a quick rescue from economic problems. This is not an investment, it makes you a hostage mentally. You are happy when the price goes up, and you break down when it goes down because you don't have a time horizon for investment, you have survival urgency. If you don't fix this thing, no matter how many tactics you learn, you will end up in the same place and get hit.
Many people say, if I don't have an emergency fund, I won't start. Many others say, though I don't have a fund I will go into bitcoin buying with big amount and what will happens I will see later. Both are extreme problematic . The truth is that you can start even if you don't have a perfect emergency fund, but going in big with zero backup is trapping yourself. The good method is to start small amount, and slowly build a backup fund. Create both bitcoin and backup in parallel, so that even if life pressures you, you don't have to break Bitcoin. Because breaking Bitcoin is the easiest, but that's where the biggest loss occurs. You should remember that as long as you don't sell Bitcoin, you haven't faced any losses.
Bitcoin rewards
patience, not hurry. Those who survive are not geniuses, they just know exactly what money is for. Letting emergency fund remain boring is their job. Accumulating regularly with investment money is their job. And once you can get this division right, then the market dip will not scare you. Instead, you will understand that volatility is actually testing your discipline. And those who pass with discipline, are the ones who get results in the end.
