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

[Hyphen(-)]

Whoever is willing to invest in Bitcoin to hold for long, we always advice them to make sure they have some money to keep on emergency so that they can avoid panic sell when they are in need of anything urgent to cover their daily life expenses.

Having backup money is very important, you can never invest and tends to hold for long if you don’t have the following.
Stable source of income that is consistent
Multiple sources of income which will be better because it will help you to cover some needs without considering your Bitcoin savings.
Keeping money for daily needs and emergency. To avoid panic sell even when the price is down due to lack of plan.

[Myleschetty]

Many people say “just hold Bitcoin for long term”, but I think one thing is often ignored: emergency money.

No, they don't genuinely disregard the necessity and advantages of emergency savings, which will support long-term Bitcoin holdings. When some people offer advice, they're not good at going into detail because they predict that the person listening ought to understand their statement.

This reminds me of what my dad used to say: when someone is telling you something or advising you, use the understanding of being more comprehensive than what is said, which will give you the understanding to outshine their explanation.

Holding Bitcoin sounds easy when everything is fine. But when real life problems come, like rent, medical bills, family issue, job loss or urgent expenses, many people are forced to sell even if they never planned to sell. In that case the problem is not Bitcoin, but bad planning before buying.

What happens if the emergency funds are insufficient to address the issue? This could be due to a lack of funds or poor planning.

[yudi09]

Bitcoin isn’t a necessity if basic needs haven’t been met. Smart decision-making puts things in their proper place. The foundation is money. When money is available, certain categories can be covered—such as basic needs, healthcare, education, and even investment.
There’s no need to set aside money for investment if basic needs aren’t guaranteed to be met—assuming that one’s income is just enough to cover those needs and not enough for savings.

[Yeesha]

You don’t need anyone to tell you about emergency funds it comes naturally regardless of if you like it or not because if you don’t have emergency funds you will be done for during any emergency.
For me you don’t need anyone to tell you about your basic needs and that’s where emergency funds falls in.

Some people failed to understand that, their concern is only on living a luxurious life to the fullest, without considering the uncertainty of life or future. But as for someone who developed the mindset of starting an investment, will definitely know that securing emergency fund is actually very crucial,, because if he is not curious about his future, he will not even think of investing from the first place. Naturally some individuals are considerate while some are inconsiderate. There is no way you will be able to hold your bitcoin for a very long time if you do not have or secure emergency fund, because anything can happen any time, and emergency can arise anytime from anywhere, so if you don't have the money to manage or take care of the emergency, you will be left with no option accept to sell your bitcoin at that moment, which will affect your investment.

[Bitcoin.com97]

Emergency funds is always talked about here, because it is as important as the Bitcoin investment,if you invested without emergency funds it will make you to touch your accumulation journey, that is why it's good to use your discretionary income, after paying all your necessary expenses,you even keep a reserved funds,them use the one left to accumulate,no matter how small it may be ,consistency is the key ,been consistent pays at the long run,them the patience will help , whenever need arises ,the emergency funds can cover you ,that is why it's said to be at least what can serve for like ,3 to 6months if work is not going smoothly or need arises urgently.

[HajiBagi]

You don’t need anyone to tell you about emergency funds it comes naturally regardless of if you like it or not because if you don’t have emergency funds you will be done for during any emergency.
For me you don’t need anyone to tell you about your basic needs and that’s where emergency funds falls in.

Some people need people that will tell them about emergency funds because some of them don’t know how to keep an emergency funds because when they want to buy they buy with everything they have without thinking about the emergency funds, although as a person who already knows how to invest in bitcoin and have already know more about bitcoin does not need anyone to tell them about the emergency funds but for those that don’t know about they need to know about it. No one is perfect and people makes mistakes every day, the reason why some people can not hold their bitcoin for long time is because they don’t know the important of emergency funds.

[Cryptomultiplier]

Bitcoin isn’t a necessity if basic needs haven’t been met. Smart decision-making puts things in their proper place. The foundation is money. When money is available, certain categories can be covered—such as basic needs, healthcare, education, and even investment.
There’s no need to set aside money for investment if basic needs aren’t guaranteed to be met—assuming that one’s income is just enough to cover those needs and not enough for savings.

What will be the essence of investing in Bitcoin if one doesn't earn enough money to even survive the day to day hardship and constant inflation of prices.
DCA strategy of investment isn't a do or die affair because it demands careful planning and that's why knowledge of budgeting and financial management is essential when considering starting an investment that may be hard to liquidate at any given time, because Bitcoin DCA investment always need a time frame that shouldn't be disrupted but adjusted accordingly to fit ones income and expenditure in the long run.

[yudi09]

-snip-

What will be the essence of investing in Bitcoin if one doesn't earn enough money to even survive the day to day hardship and constant inflation of prices.
DCA strategy of investment isn't a do or die affair because it demands careful planning and that's why knowledge of budgeting and financial management is essential when considering starting an investment that may be hard to liquidate at any given time, because Bitcoin DCA investment always need a time frame that shouldn't be disrupted but adjusted accordingly to fit ones income and expenditure in the long run.

You won’t be able to reach the level where you can invest if your daily income is barely enough to cover your basic needs. Investing is only possible for those in the middle-to-upper income bracket. They are the ones who can divide their financial planning into three parts: today, tomorrow, and the future. The future is about investing, and that can be done through DCA.
This leads me to say that investing simply doesn’t fit into people’s mindset when it’s still difficult just to earn enough to meet their basic needs. I don’t think there’s a single sane person who doesn’t want financial freedom through investing. Everyone wants it.

[Ambatman]

I think it's common thinking that investment should be done from discretionary income
In my country there's a saying " Na wu chop na dey save "
Meaning before someone starts speaking about investment there are certain needs they have answered
And I usually advice having a source of income not to be reliant on your investment.
Investment is usually sacrificing Now to gain in the future.

[CryptopreneurBrainboss]

And always remember, patience with a proper analysis usually pays off in the end.

People will also tell you about how good the bull seasons are but won't tell you how suffocating the bear season is, emergency funds are one of the most important part of being an investor and if you are not one that prioritize having one then your days of investing are numbered because the bear market is brutal to everybody and when there are no fallback to funds, it becomes difficult for you to keep holding. The investors that have made the most profit are those that forgot about their investment and the only reason they could do this is because they had other areas in which cashflow were being gotten from and they could live their life without thinking about how much they invested into Bitcoin. If you are not wired like this then you have a problem in the market as there'll be stormy days that will frighten you to sell off your portfolio.

[snowpega]

Bitcoin rewards patience, but patience becomes very hard when you invested money that you may need next month.

And always remember, patience with a proper analysis usually pays off in the end.

Bro when we say we have to keep funds in an emergency as a backup, we don't even know how much we are going to need. Maybe we are going to need 3x of what we have kept for our emergency. Although I am not saying the idea is not good because at least we already have 1x with us and we don't have to ask for more because we have some and now we need more, as in emergencies somehow funds are mostly managed if they are not that high.

Anyway I agree with you on this and we should definitely keep some part of our funds for emergencies, like 10% of our capital. It depends, if we don't have any kind of insurance then we have to allocate more. Patience is the key if we want to be successful in investing and holding Bitcoin for the long term.

[Japinat]

Keeping emergency funds will always comes first. It should be the top priority above anything else. You don't have to invest and put all your hard-earned money there, but invest only your spare money, after reserving funds for emergency purposes. This is why a lot fail in any investment because they end up risking all their funds in their investment, and when unforeseen events happen, they end up spending their investment capital and ruin their investment plans and goals.

Emergency funds should not be ignored or disregard. It should always be prioritized prior to investments.

[aioc]

An emergency is something we don't expect, as it usually comes when we are unprepared. Because it's very tempting to invest more in Bitcoin amid the market crash, we use money that should be for emergencies.
I agree that we should not forget about emergencies and we should allocate funds for emergencies and not use them for anything else, because when an emergency comes, you don't have time to think or plan where to get your money, you will get it even at if you sell all your portfolios at a lost.

[sunsilk]

It is an important thing to have an emergency fund while we're invested in bitcoin. That is because when you don't have it, the tendency of selling what you have been holding for a long time will be touched.

You'll definitely have that option to sell it and many did that including me. As we invest in bitcoin, don't put all in it because that's a bad decision that soon you'll regret if you do that.

We don't want to sell at the times either we're at loss or little profit. Emergency fund is like our insurance to make sure we will not spend our holdings.

[Fiatless]

Some people need people that will tell them about emergency funds because some of them don’t know how to keep an emergency funds because when they want to buy they buy with everything they have without thinking about the emergency funds, although as a person who already knows how to invest in bitcoin and have already know more about bitcoin does not need anyone to tell them about the emergency funds but for those that don’t know about they need to know about it. No one is perfect and people makes mistakes every day, the reason why some people can not hold their bitcoin for long time is because they don’t know the important of emergency funds.

Some economists define emergency funds as 3 to 6 months' worth of basic living expenses reserved to handle unexpected financial needs. An investor who doesn't have such funds might end up selling an asset at a loss. Some people who have sold their Bitcoin during the bear market, far below the cost price, because of unexpected expenses. Having a long-term investment plan without emergency funds is like driving a long distance without a spare tire.

[r_victory]

An emergency fund is essential for survival during times of crisis, but I wouldn't recommend building it in Bitcoin; I would opt for traditional investment funds or fixed-income instruments. In my country, it is possible to invest in government bonds that earn returns based on the annual interest rate, which is currently 14.25%. I consider it very risky to keep an emergency fund in Bitcoin or any other cryptocurrency.

[Sanitough]

Invest in yourself first, invest in your emergency funds, before you start thinking of investing into bitcoin, or any valuable and profitable investment in the market. This should be the mindset of any investor. However, people want instant money and take shortcuts, so they jump into bitcoin investment without securing their personal budget or their emergency funds first, and when emergencies hit them, they end up with panic selling and lose from their investment.

Hold bitcoin for long term, but before that, secure your emergency funds first to avoid panic selling and lost your capital.

[JoyMarsha]

There is this proverb that I know that says, whatever you do, always remember to save up for tomorrow because what comes with it can't be known.

Bitcoin investment is unpredictable; someone has to think about that, not to go all in on Bitcoin because of what is being told about it, to make someone rich. However, I must say that Bitcoin didn't promise riches for anyone who invested in it. We are just investing out of our own risk individually, to either lose or make a profit

[STT]

Its very hard to save capital especially long term when it has no yield.  That's why I expect BTC to behave like a commodity market with sharp sell offs always going to be a normal occurrence.   It becomes about timing or phases when the market for the asset is bullish or people adjust their holdings and invariably the price declines.
  Most people dont have backup funds they just got money they havent spent yet that is there to speculate with but it'll most often be recalled sooner or later and when thats true of the crowd it becomes a herd dynamic in the price action.