N1m in Bitcoin or N500k in Bitcoin and N500k in savings?

[Nasdel4]

The fact that everyone thinks differently prompted me to have this discussion with two friends of mine. When the question was asked the first quickly said I'll rather have N1m in bitcoin and no emergency savings, that was surprising because everyone faces an emergency from time to time. The second said he'll keep N500k in bitcoin and N500k as emergency savings.

Investing shouldn't come at the expense of your financial security. As we know, bitcoin is really volatile and you can't predict when the market will rise or have a price decline.
I know a lot of persons will have different ratios to which they share between investment and emergency savings, what's yours?

[devouring-DARKNESS]

Investing definitely shouldn't come at the expense of your financial security but that doesn't automatically mean the split has to be equal,  by the context you are presenting I can say someone eho had $1k in discretionary income decided to split it equally between thrir bitcoin investment and their emergency fund and while that's a choice anyone can make I wouldn't advise it.

Instead of an equal split, I would go $600 in bitcoin investment, $300 in my emergency fund and $100 in my discretionary consumption or less with whatever coming off the discretionary consumption going to my emergency fund but for most of the time my investment will definitely be taking more than 50% of my discretionary income.

[Decimetre]

If all the money you have is $1k and you have invested in bitcoin with $500, it will be good if you calculate your money from the initial time. As a beginner, you don't have to invest $500 initially to avoid creating any stress. You can share the money into, $300 in emergency funds, $200 in Backup funds, $200 in discretionary enjoyment and $300 for bitcoin investment.

Again, what you failed to state is if the person has taken care of his basic responsibilities before having the $1k left. If the $1k is your Discretionary income, then you can use the sharing formula I stated above but if you have not taken care of your basic responsibilities, then you may have to take care of your duties first before figuring out your Discretionary income and perhaps depending on your responsibilities, you may only have $400 as your Discretionary income. From there you may only have $100 to invest in bitcoin which is about 30% of your Discretionary income. So yea, your investment funds as a beginner should be within about 30% of your Discretionary income.

[Justbillywitt]

I will go with the second option, because it gives you the investor more balance to safeguard your investment. Unless the first person is going to be solving any emergency that come up with selling the bitcoin since all the discretionary income are going into buying bitcoin. But that is not a wise move, it could happen that the emergency came at a time when bitcoin price is down, just like we are seeing right now. As bitcoin investors, we shouldn’t make decisions that will become problematic for us in the future.

[PostQuantumBTC]

@Nasdel4, it will be better if you change that $1000 and $500 to naira instead of dollar because you posted this topic on the Nigeria board or you can just move it to the English board.

But you can write both in naira compulsory, and also add foreign currencies of your choice.

I think our moderator igebotz should let this naira rule exist so that this kind of topic can fit more on the local board.

I will prefer the $1000 in bitcoin than to have it in naira, but I will invest it wisely and not just invest it when the price of bitcoin is high.

[Nasdel4]

@Nasdel4, it will be better if you change that $1000 and $500 to naira instead of dollar because you posted this topic on the Nigeria board or you can just move it to the English board.

But you can write both in naira compulsory, and also add foreign currencies of your choice.

I think our moderator igebotz should let this naira rule exist so that this kind of topic can fit more on the local board.

I will prefer the $1000 in bitcoin than to have it in naira, but I will invest it wisely and not just invest it when the price of bitcoin is high.

Thanks for the correction, I will change it to naira.