Emergency fund is a fund kept for emergency situation and not what you need to invest in Bitcoin, certainly Emergency does not just come anytime, it takes time. It can last for as long as 1, 2 to 5 years before it happens, no one knows how long it will last. But it just need to be there Incase such emergency surface, you will not need to sell your Bitcoin anymore to get the emergency fund because that will make you want to tamper with your intended amount you are holding. But however it's not a crime to invest in Bitcoin with your emergency fund, but it is not advisable.
Life is very uncertain and we can have unexpected events at any time in which we need money urgently like paying hospital bills in case of emergency. For such situations, its necessary to have some cash readily available that we can use. Now if you don't have emergency funds in place rather you have used that for investment in Bitcoin then it will be difficult to tackle the emergency situations like the one I mentioned. Investment is to secure our future while emergency funds are there to make our present life easy.
Just as you may need cash to cover medical emergencies, your current source of income may also be cut off due to sudden unemployment. To keep your Bitcoin accumulation unhurt for the long term, plan how you will meet your and your family's expenses without having to withdraw your holdings. You will need an emergency fund at a time when you are in danger before you feel like you may not be in danger in the future.
When I was new to investing, I did not know about this emergency fund but I have come to realize the importance of an emergency fund to ensure the safety of your Bitcoin holdings in times of need. The DCA method is important for long term Bitcoin accumulation as well as the importance of having an emergency fund available.
