Many people say “hold Bitcoin long term”, but forget about emergency funds

[jossiel]

It means protection so it's a safety net that has a different purpose from the usual financial matter that we have.

As it serves its purpose differently, there are times that whoever has it are also spending it to something that's unusual which shouldn't be for it.

An investor will protect their investments like bitcoin in the best way that they can and one of it is by not using the holding they have.

Yes, that's right there should be another saving for emergency funds that separated from your investment, like what OP mentioned Bitcoin investment can be rewarding but if you have limited amount of money and you use it for investment then suddenly emergency case happen it can be a loss since you need to pullout your investment to finance your needs, so the better appraoch is to make sure that the money you invested is well dedicated to this sole purpose and nothing else, to make sure that you are not going to touch it while you haven't reached your set targets.

Those who have experienced using their money for emergency funds into other purpose has learned how to utilize it well.

That's why having a back up fund or extra in investing for these purposes won't make you do the unnecessary and that's to spend the funds for specific purpose.

I hope that all of us will never spend the bitcoin that we have saved and held for a very long time just for emergencies when we're decided to keep it for the long term.

[slapper]

Your emergency fund cannot just be seen as a safety net because it protects your investment strategy from being disrupted by life's unexpected events and thats something to take seriously. When you invest money you might need for essential expenses, you are more likely to sell during downturns not because Bitcoin has failed but because they have no other option, that is why the sequence matters: secure your essentials, maintain a financial buffer and then invest only what you can genuinely afford to leave untouched for years, and doing just so removes much of the emotional pressure that leads to panic selling and allows patience and sound analysis to work together over the long term otherwise you will find yourself struggling emotionally alot.

If you do not have stability, it is an anxious conviction with a story.

Your emotional aspect is significant. Imagine two investors sitting in front of the same number on the screen being red. One has a cushion. The other one has 3 weeks before the landlord begins questioning him. And no chart can ever portray the distance between the two. Same asset. Same price action. Complete other psychological experience. However, the decisions made in those two states are not even comparable.

Bitcoin has a long-term bull market. Monetary properties, supply mechanics, network effects all multiply over time. But the case only works for people who've structured their life to not need the money they have put into it.

[icebar]

Just as the word emergency implies it is unexpected meaning that it can happen at anytime, which means that this is something that you should be prepared for if you want to start investing in Bitcoin but it is important to set out an emergency funds in order to avoid selling your coins when you haven't made profits yet but the main struggle with some people is that they don't have a source of income so that is the reason why they struggle to keep up with their investments. It is important not to start an investment without an emergency fund.

People who do not have a strong source of income should not start investing in Bitcoin. Because if a person cannot hold it for a long time, then starting an investment can cause even greater losses. Because if a person does not have a specific source of income, then he will have difficulty meeting his daily living expenses, so he will not be able to invest in Bitcoin. And even if he invests in Bitcoin, he will not be able to hold it for a long time because he does not have the ability to form a backup fund. So, if he needs money for any emergency in the future, he will be forced to sell Bitcoin. And there is no need to delay the investment by focusing on forming an emergency fund at the beginning for investing in Bitcoin. It would be better if you manage an emergency fund and regular investment in Bitcoin at the same time. This does not waste time and opportunity.

[Abu-Naim]

Just as the word emergency implies it is unexpected meaning that it can happen at anytime, which means that this is something that you should be prepared for if you want to start investing in Bitcoin but it is important to set out an emergency funds in order to avoid selling your coins when you haven't made profits yet but the main struggle with some people is that they don't have a source of income so that is the reason why they struggle to keep up with their investments. It is important not to start an investment without an emergency fund.

When you are about to invest, you should have kept some money aside against any unforeseen circumstances that can affect your investment plan, and that is why when people sell their bitcoin claiming it’s for emergencies, I feel like they are not ready to invest that’s why they used all what they have to buy Bitcoin which is wrong.

Always invest the amount you can afford to lose, and make sure you don’t use all your money to buy Bitcoin because if emergency; I think this the advice we always give newbies, and they should avoid FOM and panic sell. They should  have plan for other things to avoid touching their investments.

[Doll2233]

When you are about to invest, you should have kept some money aside against any unforeseen circumstances that can affect your investment plan, and that is why when people sell their bitcoin claiming it’s for emergencies, I feel like they are not ready to invest that’s why they used all what they have to buy Bitcoin which is wrong.

Always invest the amount you can afford to lose, and make sure you don’t use all your money to buy Bitcoin because if emergency; I think this the advice we always give newbies, and they should avoid FOM and panic sell. They should  have plan for other things to avoid touching their investments.

People who are taking that kind of step are not mature enough to invest in Bitcoin, and they should try to save first and then calculate their wealth and invest only 2 percent of their wealth which you want to take risk. You should not think about that money and this statement is right for people who know about Bitcoin and want to invest some amount for long term for which they are ready to lose their investment. In the market, there are all kinds of people but new people should research first and prepare their minds for investment because there will be ups and downs in the market. If you want to sell in short term then that is not best for the people who invested their precious amount.