Should we do DCA strategy for emergency funds for many years?

[PhilosopherKing]

In anything you do man never you use emergency funds to ongoingly invest in bitcoin. Emergency can come anytime it fucking want, imo it dosen't even care whether you have what it takes to handle it.  Bitcoin has a volatile behavior and the price fluctuates anyhow, so in the short time the value of the price can go down and reduce the value of  the amount of emergency money you put inside it. And when the time for you to use your emergency funds comes, and you want to withdraw from bitcoin, and you might now notice that the amount you put inside bitcoin might not be what is still there.

The value will have dropped down .It is nothing strange, that is how bitcoin is, this is why it is never smart to use bitcoin for emergency funds. Invest only in Bitcoin when you are investing for long time, and then use local currency for saving your emergency funds.

[Pi-network314159]

My questions is whether it is important to DCA our emergency funds like our Bitcoin DCA accumulation for many years? If your answer is yes, should we stop if after some years we feel that we have backed up enough funds for emergencies? I know it's not recommendable to keep emergency funds in a volatile asset like Bitcoin but assuming you stopped making provisions for emergency funds should you keep a part of it in Bitcoin to hedge against inflation or leave everything in fiat as reserve funds, having mind that fiat deprecates over time?

We're hear to lean, what is your take?

The truth is that no matter how you try to keep your emergency fund in Bitcoin to avoid inflation, inflation will never end. Inflation is endless, as Year passes by so is inflation rising and if you want inflation to stop before you can withdraw it back to fiat, then am afraid you will never have fiat as emergency fund. The only thing you can say is that there is a level you keep emergency fund and you see you have accumulated enough, you will stop and invest more on Bitcoin, and not using emergency fund to invest to avoid inflation. It is totally wrong to do that. Emergency fund is emergency fund, Bitcoin investment is Bitcoin investment, non should Cross each other's part. Sure There is a schenerio or situation where our problem is bigger than our emergency that fund is and you can withdraw some to solve it but not as you have explained.

[Olatundespo]

My questions is whether it is important to DCA our emergency funds like our Bitcoin DCA accumulation for many years? If your answer is yes, should we stop if after some years we feel that we have backed up enough funds for emergencies?

Accumulate Bitcoin from discretionary income. Keep an emergency fund from this fund and keep the excess amount of funds floating with you in cash. You yourself set the amount and percentage of funds to allocate from discretionary income as per your convenience. despite that keep most of the funds in Bitcoin.

An emergency fund is mainly created for emergency needs. Keeping the amount of emergency fund that you need to create at your own discretion and stop it after a specified time. After that allocate maximum discretionary income in Bitcoin using the DCA method.

I know it's not recommendable to keep emergency funds in a volatile asset like Bitcoin but assuming you stopped making provisions for emergency funds should you keep a part of it in Bitcoin to hedge against inflation or leave everything in fiat as reserve funds, having mind that fiat deprecates over time?

We're hear to lean, what is your take?

Keep the purpose of Bitcoin in the DCA method in the long term and during this period, unexpected events may happen to you such as losing a job or a physical accident or any other emergency. Keeping that in mind, it is important to keep an emergency fund mandatory to keep your Bitcoin holding intact in the long term because at any time you may be the victim of an emergency situation. In that situation the purpose of the emergency fund is to determine how to resolve it without interfering with your Bitcoin holding.

Discretionary income is required to sustain a long term DCA strategy, and an emergency fund is required to sustain Bitcoin holdings long term and reach a sustainable overaccumulation stage. Accumulate Bitcoin regularly in the DCA method, keeping the emergency fund in fiat form. Keep cash flow flowing for your financial stability.

[Sammye3]

It’s perfectly okay to sell your bitcoins when you reached your profit target. Don’t let the fanatics on the internet make you feel bad or less of a bitcoiner because you sold your coins. IMO I believe it’s safer to have a domiciliary account where you can save your money in usd.

This is a honest advice for anyone thinking that they are betraying the long term purpose of bitcoin by selling after making profits but that's a total lie. Every bitcoin investment should have a profit margin in mind, the market is a friend of no man and nobody can predict the future, so its best to always make calculated investments and avoid contemplating on taking profits when it comes.

Bitcoin is a secured digital asset and it is almost an impossibility to see it back to $0, so its best to stay consistent on occasional investment either with DCA strategy or lumpsum and grow one's portfolio, so that way the profits become more tangible.