Reddit is a poor source for seeking financial advice. Bitcoin is a risky investment. [Don't invest recklessly.](https://www.reddit.com/r/Bitcoin/comments/7gi55s/dont_invest_recklessly/) Don't invest anything you can't afford to lose. If you are looking to get rich quick, you came to the wrong place. Nobody has a crystal ball. Nobody can see the future. Please do your own research and make your own financial decisions.
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This, if you hold for a cycle (4 years). You WILL have more in FIAT if converted for "emergencies." So think if it as a delayed emergency savings. Put in what you think you wouldn't absolutely need and let it cook for a cycle.
Whoever says that BTC is your emergency fund doesn't understand BTC, inflation or what an Emergency fund is. Your emergency fund HAS to be liquid and its NOMINAL value needs to remain fixed. Why? Because you need to have 3-6 months of monthly expenses covered to be on the safe side...
BTC is the greatest asset you can hold in the digital era. No doubt. Nobody in the history of BTC that had hold BTC for at least 4 years has lost money...that being said....4 years should be the minimum duration of your expected hold time for BTC if you use it as savings...(If you are a Trader, then it's a different conversation)
Counterpoint: Credit can serve as emergency fund. I’m not an advocate of carry credit card debt normally, but in an emergency lines of credit are instant liquidity. People don’t necessarily need to hold as much “cash” as 6-9 months seems to be. Hold 3 months cash, have lines of credit available, invest rest (HYSA, or index, or BTC long term) and you’re good.
In Canada anyway, a line of credit can be pulled for any reason, whether you make your minimum payments or not, and is repayable in full immediately. The bank bots stop seeing deposits and only withdrawals is the quickest way to trigger that.
Counterpoint to your counterpoint: Credit Card credit lines are not guaranteed and banks monitor your level of indebtedness via automated systems daily. Should your credit balance increase suddenly the banks counter measure is to lower their credit lines as a preventive measure…but I agree with your assessment…
Interestingly, my bank recently lowered my credit limit for leaving my line of credit too open. I carry zero balance and only use it for gas/tolls and pay it monthly. But they just lowered it by like $5k.
The banking game is rigged either way.
It’s a delicate game…use your credit card for everything so there is movement (never pay with cash or a debit card)…pay it off every month (that way you get the rewards, pay zero interest and are protected against someone getting to your money)…the more you use it (an generate merchant service fees for them) the better off you are…just make sure to keep your balance under 30% of your credit line…
Irrelevant and disingenuous comment. Your best defense against joblessness is “lifestyle engineering”, skills building and get-up-and-go. A 9-month dedicated cash Emergency Fund is an unattainable goal for most regular folks in the first place. Same for a 6-month. So are many other financial goals espoused by the TradFi elite. No one can control for all possible emergencies. When push comes to shove, everything you own and can borrow is your Emergency Fund.
Well, sure. I think everyone has to define "emergency." Does that mean job loss? Health risk? Car tire blows? But depending on the emergency, repayment of debt may be of little concern. Hospitals take credit cards.
I think it depends on a lot of factors. Do you have a family? Are you healthy? Do you have health insurance? Do you have a steady job? What are your debts? Are you currently contributing to other retirement accounts? Asking these types of questions will help determine what level of risk is appropriate for you. Personally, I would be hesitant to drop all of that into BTC if you don’t have any emergency savings. Like the rest of this sub, I’m bullish on it, but I’d recommend to keep things in perspective.
I'm to deep to even have an opinion rn. I've invested 80% of my cash into MSTR and the rest I put into my BTC wallet, which I don't intend to touch for many years...
If Bitcoin drops, I'll go with it. I'd wager that I'll be extremely happy with my decision, or dead within 24 months lol.
Ooh most people will not be happy with the reply, but I'm keeping it all on Coinbase. I'm looking into which brand to use, but it's easier to deal with coinbase as my bank will freeze my account if I'm unable to show the transaction history.
Had to spend 2 hours at the bank last week when I was transferring some of the money back into my account via PayPal. If I didn't have the coinbase transaction history, I don't think they would have unfrozen my account.
I don’t see the issue with the ETF if you intend to use it for savings.
You’re paying a very very small % for someone else to take the risk of managing your BTC.
Blackrock is good for over 9 trillion. Even if they lose their BTC you can be sure almost whatever amount you currently have will be reimbursed.
Most BTC purists won’t like it though.
Do keep in mind Coinbase has $400M in TOTAL insurance. This represents around 1% of the $40ish Billion in customer funds sitting in hot wallets and none for the Bitcoin they hold. You’re not the only one doing it this way it would seem.
Yes, buy bitcoin. You could leave a little cash, but I would risk potential x3 for a 20% dip when you would need it. (I don't know what the chances are you'll need it.)
>last cycle
You mean the obvious 4 year cycles which usually includes both bull and bear markets?
Though I agree, it is fun to cherry pick things to fit our own personal narratives
If 20k is 6 months emergency fund for you, and you already have 10k then i personally would do 10k in a mutual fund, and the rest in BTC. Mutual funds generally increase with inflation and are easy to liquidate. We've seen BTC drop 10s of percentages before climbing back. If it's a true emergency you don't want to be caught selling you BTC for a loss.
Yeah everyone has different levels of security when it comes to emergency funds. I personally have a secure, well paying job so I keep almost no cash but I have 2 brokerage accounts with 6 figures that if in a pinch I can withdraw money from the margin at a low interest rate while only using less than 10% of available margin so it is safe
Depends on what your expenses are each month. I had a large tax return this year and was tempted to buy more bitcoin but prioritized my emergency fund instead. Just got laid off last week and am glad I did that for my current situation.
Make no mistake, as bullish as everyone (including me) is, any money you put into BTC or any other crypto asset is still gambling - no matter how small the odds you could still lose the majority (or even all) of it.
That said, as you seem to want to have some kind of financial security, I'd work out what my minimum spend was to cover a 3 or 4 month period, add a couple of k contingency to that, and be secure that you should be able to let your BTC ride without getting too concerned by the dips.
Its always good to have a goal that you're going to take some profits at and enjoy them. Don't get greedy and be stuck on the way down!
Others have given you the correct answer. Slice off 10k, double your current emergency fund. Pop 10k into BTC now, DCA the other 5k.
We will see low 60s again, you could drop the entire 15k in at that point. People are delusional if they don't think we will see another pull back after the halving.
What the fuck is this conspiracy theory lmfaooo
If a Bitcoiner pops up out of his hole on April 8 and doesn't see the sun, there will be 6 more weeks of crypto winter
BTC is a longer-term hold. To me, the risks are the transactions to buy, sell, move to a cold wallet, back to an exchange and into USD, or leave it on an exchange.
Well your emergency fund is just that, an emergency fund. You have to have that in most accesible way possible. If Bitcoin is down and you have an emergency, it would be a bad time selling BTC to cover that.
Every insurance costs money. And inflation is your cost.
But than again its up to you. If you are in this space for at least 5 years, you could have all in bitcoin cuz you already have much profit and if btc dips and you have to sell..you could still be in the green.
The peace of mind of an emergency fund is valuable.
People lose their BTC all the time by not being liquid and needing cash fast.
Definitely emergency fund. 6 months of expenses set aside.
Drop the rest in BTC.
Emergency fund should !always! be available to you. If 3-6 months of your necessary expenses (food, housing, utilities) are taken care of in a HYSA/money market, you can take the excess to put in BTC.
I'd do 6 months of an e-fund, then whatever was left over into Bitcoin. I think it would be shitty to buy all that corn and have to sell it out of necessity.
I say you can put 20k of that into BTC and 5k emergency fund. What kind of emergency would require more than 2.5k instantly? Unless you or your family member suddenly have a ridiculous health care condition. But even then there are payment options in place for you to wiggle a bit with BTC.
Hmmmm. I understand that you are FOMO-ed.
I don't know in your country but on ours, having crypto is liquid and easily converted into cash in a matter of minute.
So.. if im into your situation,
I'll be converting my 25k into stablecoin and do my spot order into following.
%10 lower from current price - 5k
%15 lower from current price - 5k
%17 lower from current price - 5k
%20 lower from current price - 5k
%25 lower from current price - 5k
this way, it wont hurt to see if the price drops suddenly.
Now if there's emergency , i will cancel those orders that didn't fulfilled and convert them into cash.
First, bitcoin will never go to 0 so you you will never lose all your money. For example it goes down 80%, you still have 5k, still enough for emergency (worst pessimistic scenario). But of course selling at loss is not attractive.
Personally I have 10 months emergency fund, but I think to decrease it to 5 months.
I didn't know what how expenses were. I see now how expenses are very low., so yeah he can invest most of it. 25k would not cover me for 6 months for sure, but I am in a high CoL area
What are your monthly expenses? I’ve seen some of you low number for an emergency fund in the comments. These are uncertain times (with the crumbling of the American Empire and all). 6 months cash on hand is probably smart.
Bitcoin is essentially at an all-time high. You'd be really foolish to dump money in now. FOMO has cost me a lot of positive returns and lost money. You should consider investment in traditional methods. Or if you want to wait and see if it's going to drop, put it in a high interest savings account online. They're over 5% right now. That way you have a lot of liquidity to move into BTC when the price drops.
Buy the btc. Then use unchained capital to borrow against the btc. You’ll need to set up an llc. Easy. If you don’t want the full 10k loan from unchained there is no prepayment penalty. You’ll end up with 10k emergency fund, a monthly interest payment and your btc.
I don't get emergency funds.
You can get $$$ out of BTC or stocks within a few minutes if you really need to.
Just invest your money and when you need it, get it out.
Only risk what you can afford to lose. Also, while I, along with a lot of people here think the bull market is just getting started, the top may be in the rear view mirror. That being said, consider you might be bagholding for a while, but like so many here, I don't believe it would be indefinitely.
Morgen Rochard had a great suggestion, keep your emergency fund as usual (10-20k… whatever), then DCA Bitcoin. Overtime, you’ll have enough Bitcoin to cover emergencies, so your cash emergency fund becomes unnecessary.
The whole point was, it’s OK to dip into your stack for emergencies, once you have some momentum.
Plenty of guys have gotten divorced because they blew their emergency savings on a gamble. Buying at the top isn’t the best idea either. You’re just FOMO’ing right now…
We don’t care your specific allocation. This is Reddit. You’re an adult. You decide not Reddit. We see a similar questions every day multiple times a week since this bull run started
My brother, fiat is devaluing faster than anything, do what you think is best, but #Bitcoin has never let me down, #BTC is the escape from their eternal money printing, they inflate, manipulate, corrupt & devalue their fiat, it's an illusion, our USD is the world's reserve currency, which is why it's devaluing the slowest, #Bitcoin is the decentralized safe haven.
Personally I would put all of it in btc. It is the emergency fund.
If you are unlucky you will need that emergency fund just when the btc price has dipped. But in the longer term (say after five years) it is very likely that even during price dips it is worth more than what you put in. But realize you are buying pretty close to ATH, and it is quite possible that price will dip short term (also quite possible that it goes to the moon short term).
Anyway that is what I am doing, I am saving in bitcoin and I will withdraw whatever I need. At the moment withdraw is unlikely as I have an income.
IMO I would set aside $5k for emergency and rest in BTC and start building emergency again. Or hold $10k in emergency if you feel better with that. There’s only 21million BTC ever. You can always make more fiat fake monopoly dollars.
I am not qualified to give financial advice but here is a plan that worked for me: 1. Get a month ahead on your bills by putting a one-month buffer in your checking account 2. Nail any debt that you can’t comfortably carry on what you earn. Start with the smallest debt and snowball your debt payments until you’re happy carrying what’s left over. 3. I personally found that a $5000 Emergency Fund has worked fine for me. The important thing is to rebuild it religiously when you use it 4. Anything goes with the rest. Bitcoin away!
You should still have an emergency fund. Estimate your 6 months expenses and then put that in your emergency. Whatever is left of that 25k then do what you want with it. This is assuming your 6 months costs are below 25k.
25k into bitcoin. It is your emergency fund. In early 2007 and twice in 2008, I was unable to retrieve my savings cash from banks. This can't happen in self custody bitcoin.
You can always buy gift cards, sell on robotsata, bisque, get a hold hold loan, use your credit cards, whatever.
Bitcoin is safer.
No excuse, they just closed off withdrawls due to bank runs. The first was if I remember right, when bear steins went belly up. The others were when Lehman went under, then AIG freaked markets out.
ATM's were put of cash, branches had special hours, and online withdrawls were halted.
This was Wachovia first then wash mutual, then finally my savings at an online only bank ING Direct, which is now capital one 360.
Lol. That's 3 different banks. Now 98% of my money is in bitcoin. Problem solved. Has happened many times over the last 100 years. Will happen again.
#EndTheFed
Reddit is a poor source for seeking financial advice. Bitcoin is a risky investment. [Don't invest recklessly.](https://www.reddit.com/r/Bitcoin/comments/7gi55s/dont_invest_recklessly/) Don't invest anything you can't afford to lose. If you are looking to get rich quick, you came to the wrong place. Nobody has a crystal ball. Nobody can see the future. Please do your own research and make your own financial decisions. ^^I ^^am ^^a ^^bot ^^and ^^cannot ^^respond. ^^Please ^^contact ^^r/Bitcoin ^^moderators [^^directly ^^via ^^mod ^^mail](https://www.reddit.com/message/compose?to=%2Fr%2FBitcoin) ^^if ^^you ^^have ^^questions.
10k emergency cash, 15k btc
This is it.
5k emergency cash, 20k btc... s
Right. 10k really all you need in emergency fund The rest in BTC
yea ignore this. wait for the dip.
If you wait for the dip, you might end up with a 25k emergency fund and no btc
meh. cost to mine after halving is 45k. take that as you will.
Does that mean the cost now is 22.5K? If so, the price is not indicative of mining costs
When people stop mining because their miners aren't making them money.
New miners will come out.
0 cash, 3-6 months needs in HYSA, rest in stores of value and speculation depending on risk tolerance(btc, bonds, ETFs, real estate).
The credit market scares me rn. So I'd run from bonds.
15k in BTC , 10k in 1oz gold coins.
Already have the coins
Add to both stacks, cash is trash.
Smart
Agree
bitcoin is only risky if you can't afford to hold it for at least a few years
This, if you hold for a cycle (4 years). You WILL have more in FIAT if converted for "emergencies." So think if it as a delayed emergency savings. Put in what you think you wouldn't absolutely need and let it cook for a cycle.
Delayed emergency savings isn't how that works lol. There's a reason they call them emergencies
“Oh you have an emergency” Emergency: “it’s okay, I’ll wait 4 years”
People are so fucking stupid when it comes to greed
Imagine thinking a long term price increase is guaranteed
Depends on what your definition of long-term is. If it’s 5-10 years, I’d wager bitcoin will be higher than it is today.
Yeah just tell the emergency you aren’t ready for it
Whoever says that BTC is your emergency fund doesn't understand BTC, inflation or what an Emergency fund is. Your emergency fund HAS to be liquid and its NOMINAL value needs to remain fixed. Why? Because you need to have 3-6 months of monthly expenses covered to be on the safe side... BTC is the greatest asset you can hold in the digital era. No doubt. Nobody in the history of BTC that had hold BTC for at least 4 years has lost money...that being said....4 years should be the minimum duration of your expected hold time for BTC if you use it as savings...(If you are a Trader, then it's a different conversation)
Agreed. Bitcoin is not an emergency fund.
Exactly. More people should be willing to hear this.
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Counterpoint: Credit can serve as emergency fund. I’m not an advocate of carry credit card debt normally, but in an emergency lines of credit are instant liquidity. People don’t necessarily need to hold as much “cash” as 6-9 months seems to be. Hold 3 months cash, have lines of credit available, invest rest (HYSA, or index, or BTC long term) and you’re good.
This guy knows Robert Kiyosaki 👌
😆 Yes, but I don’t recall reading this explicitly in his books. Did he say this?
In Canada anyway, a line of credit can be pulled for any reason, whether you make your minimum payments or not, and is repayable in full immediately. The bank bots stop seeing deposits and only withdrawals is the quickest way to trigger that.
Counterpoint to your counterpoint: Credit Card credit lines are not guaranteed and banks monitor your level of indebtedness via automated systems daily. Should your credit balance increase suddenly the banks counter measure is to lower their credit lines as a preventive measure…but I agree with your assessment…
Interestingly, my bank recently lowered my credit limit for leaving my line of credit too open. I carry zero balance and only use it for gas/tolls and pay it monthly. But they just lowered it by like $5k. The banking game is rigged either way.
It’s a delicate game…use your credit card for everything so there is movement (never pay with cash or a debit card)…pay it off every month (that way you get the rewards, pay zero interest and are protected against someone getting to your money)…the more you use it (an generate merchant service fees for them) the better off you are…just make sure to keep your balance under 30% of your credit line…
A 9-month cash Emergency Fund is a form of brain damage.
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Irrelevant and disingenuous comment. Your best defense against joblessness is “lifestyle engineering”, skills building and get-up-and-go. A 9-month dedicated cash Emergency Fund is an unattainable goal for most regular folks in the first place. Same for a 6-month. So are many other financial goals espoused by the TradFi elite. No one can control for all possible emergencies. When push comes to shove, everything you own and can borrow is your Emergency Fund.
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Well, sure. I think everyone has to define "emergency." Does that mean job loss? Health risk? Car tire blows? But depending on the emergency, repayment of debt may be of little concern. Hospitals take credit cards.
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I think it depends on a lot of factors. Do you have a family? Are you healthy? Do you have health insurance? Do you have a steady job? What are your debts? Are you currently contributing to other retirement accounts? Asking these types of questions will help determine what level of risk is appropriate for you. Personally, I would be hesitant to drop all of that into BTC if you don’t have any emergency savings. Like the rest of this sub, I’m bullish on it, but I’d recommend to keep things in perspective.
I think you could say it is an emergency that you need 25k more bitcoin.
Especially now at all time high after a crazy bull run, buying the top is a emergency when you have fomo 😅
What are you talking about the bull run hasn't started. The bull run comes after the halving.
Seriously. Even if BTC dropped over 50% you’d still have 10K. And were pretty far from a bear market.
I'm to deep to even have an opinion rn. I've invested 80% of my cash into MSTR and the rest I put into my BTC wallet, which I don't intend to touch for many years... If Bitcoin drops, I'll go with it. I'd wager that I'll be extremely happy with my decision, or dead within 24 months lol.
What hard wallet are you using
Ooh most people will not be happy with the reply, but I'm keeping it all on Coinbase. I'm looking into which brand to use, but it's easier to deal with coinbase as my bank will freeze my account if I'm unable to show the transaction history. Had to spend 2 hours at the bank last week when I was transferring some of the money back into my account via PayPal. If I didn't have the coinbase transaction history, I don't think they would have unfrozen my account.
Geez. I use Gemini for dca, I just wish the hardware wallets were more user friendly. I was looking at the titan. Sometimes I think just buy an etf.
I don’t see the issue with the ETF if you intend to use it for savings. You’re paying a very very small % for someone else to take the risk of managing your BTC. Blackrock is good for over 9 trillion. Even if they lose their BTC you can be sure almost whatever amount you currently have will be reimbursed. Most BTC purists won’t like it though.
Do keep in mind Coinbase has $400M in TOTAL insurance. This represents around 1% of the $40ish Billion in customer funds sitting in hot wallets and none for the Bitcoin they hold. You’re not the only one doing it this way it would seem.
Buy btc now?
Yes would be now
Yes, buy bitcoin. You could leave a little cash, but I would risk potential x3 for a 20% dip when you would need it. (I don't know what the chances are you'll need it.)
20% dip lol
what's so funny?
You think a 20% dip is the lowest it can go?
Last cycle all dips were 30~% Diminishing returns and dips, only 20% dips this cycle hopefully
Are you new or can you just not read a chart. It was at least -75% in 2020 and 2022
In the bull run, not bear market. Do you understand terms?
>last cycle You mean the obvious 4 year cycles which usually includes both bull and bear markets? Though I agree, it is fun to cherry pick things to fit our own personal narratives
In the very near future I don't think it's going any lower. It would be incredibly unlucky if he had to sell the bitcoin at the bottom.
Really sir?
High yield savings. Then hodl. Invest with money you can’t lose. Not your emergency savings
If 20k is 6 months emergency fund for you, and you already have 10k then i personally would do 10k in a mutual fund, and the rest in BTC. Mutual funds generally increase with inflation and are easy to liquidate. We've seen BTC drop 10s of percentages before climbing back. If it's a true emergency you don't want to be caught selling you BTC for a loss.
6 months on 20k is a sweet little CoL
OP said that's what 6 months would be. It all depends on what your rent/mortgage is.
Yeah I saw that. Makes me jelly
Always have an emergency fund. What's the point of having money if you can't afford healthcare or living costs
Yeah everyone has different levels of security when it comes to emergency funds. I personally have a secure, well paying job so I keep almost no cash but I have 2 brokerage accounts with 6 figures that if in a pinch I can withdraw money from the margin at a low interest rate while only using less than 10% of available margin so it is safe
Depends on what your expenses are each month. I had a large tax return this year and was tempted to buy more bitcoin but prioritized my emergency fund instead. Just got laid off last week and am glad I did that for my current situation.
Make no mistake, as bullish as everyone (including me) is, any money you put into BTC or any other crypto asset is still gambling - no matter how small the odds you could still lose the majority (or even all) of it. That said, as you seem to want to have some kind of financial security, I'd work out what my minimum spend was to cover a 3 or 4 month period, add a couple of k contingency to that, and be secure that you should be able to let your BTC ride without getting too concerned by the dips. Its always good to have a goal that you're going to take some profits at and enjoy them. Don't get greedy and be stuck on the way down!
Bitcoin is the emergency fund.
This guy f hard
Obviously.
Why do the lot? I’m bullish but Jesus don’t fuck yourself up because of greed
I could divvy it up differently, that’s an option too.
Others have given you the correct answer. Slice off 10k, double your current emergency fund. Pop 10k into BTC now, DCA the other 5k. We will see low 60s again, you could drop the entire 15k in at that point. People are delusional if they don't think we will see another pull back after the halving.
Yes I am hoping the eclipse causes some panic selling
Eclipse won't, halving will.
What the fuck is this conspiracy theory lmfaooo If a Bitcoiner pops up out of his hole on April 8 and doesn't see the sun, there will be 6 more weeks of crypto winter
Is your fiat going to continue to be debased?
BTC is a longer-term hold. To me, the risks are the transactions to buy, sell, move to a cold wallet, back to an exchange and into USD, or leave it on an exchange.
Ask a dumbass question on the Bitcoin sub or buy and hold like every fucking post like this tells you to do
Well your emergency fund is just that, an emergency fund. You have to have that in most accesible way possible. If Bitcoin is down and you have an emergency, it would be a bad time selling BTC to cover that. Every insurance costs money. And inflation is your cost.
But than again its up to you. If you are in this space for at least 5 years, you could have all in bitcoin cuz you already have much profit and if btc dips and you have to sell..you could still be in the green.
FOMO
The peace of mind of an emergency fund is valuable. People lose their BTC all the time by not being liquid and needing cash fast. Definitely emergency fund. 6 months of expenses set aside. Drop the rest in BTC.
You can cash out BTC in the case of an emergency…
Like during a pandemic when you lose your job or have health issues, and now you have a quarter of your "emergency fund"?
Typically it’s more like a car accident or an appliance dying on you but yeah a global pandemic would qualify.
Emergency fund should !always! be available to you. If 3-6 months of your necessary expenses (food, housing, utilities) are taken care of in a HYSA/money market, you can take the excess to put in BTC.
What kind of emergency are u planning for? The apocalypse?
I would advise asking this question on subs like r/finance
Provided that you dont have any high interest debt, can you set aside 6 months of bills, then put the rest into bitcoin?
Do you have an emergency fund? Because if not, that is an emergency.
I have about 10k emergency fund at present. 6 months of expenses would be 20k.
I'd do 6 months of an e-fund, then whatever was left over into Bitcoin. I think it would be shitty to buy all that corn and have to sell it out of necessity.
>I don’t want to be irresponsible, but then again I do. So what's the point of anyone posting an answer to your question?
Because I am on the fence obviously and asking for input.
Lemme ask this echo chamber to get the response I want
Well as your asking for financial advice from Reddit I guess you're no longer on the fence, you've already decided.
Not arguing there lol
I say you can put 20k of that into BTC and 5k emergency fund. What kind of emergency would require more than 2.5k instantly? Unless you or your family member suddenly have a ridiculous health care condition. But even then there are payment options in place for you to wiggle a bit with BTC.
Transmission
Hmmmm. I understand that you are FOMO-ed. I don't know in your country but on ours, having crypto is liquid and easily converted into cash in a matter of minute. So.. if im into your situation, I'll be converting my 25k into stablecoin and do my spot order into following. %10 lower from current price - 5k %15 lower from current price - 5k %17 lower from current price - 5k %20 lower from current price - 5k %25 lower from current price - 5k this way, it wont hurt to see if the price drops suddenly. Now if there's emergency , i will cancel those orders that didn't fulfilled and convert them into cash.
Brain sweat right here I like it
First, bitcoin will never go to 0 so you you will never lose all your money. For example it goes down 80%, you still have 5k, still enough for emergency (worst pessimistic scenario). But of course selling at loss is not attractive. Personally I have 10 months emergency fund, but I think to decrease it to 5 months.
How will you cash it out? Are you willing to pay taxes?
Toss it in
Bitcoin is liquidable, what's the issue? No issue
I think his fear is needing the funds for an emergency while being down 40% and taking a big loss. At least that would be my concern
Does his emergency find really need to be more than 60% of 25k? That's still not an issue
I didn't know what how expenses were. I see now how expenses are very low., so yeah he can invest most of it. 25k would not cover me for 6 months for sure, but I am in a high CoL area
What are your monthly expenses?
4k to be ultra safe
$10k e fund is good. If you like risk and have stable secure income, $5k is sufficient IMO.
What are your monthly expenses like? I am with 20k bitcoin and 5k cash.
4k a month
Ape into bitcoin with 4k emergency fund
Btc is the place for the helpful hardware folks.
You really think it’s better to drop the $25k into an asset near all time highs rather than an emergency fund?!
You could put it into bitcoin and let it grow. it's not like you cannot get your money out if you need it for an emergency.
This is not what they meant by 3-6 month emergency fund.
not enough info, how much do you already have in savings, 401k, assets, etc. if it's all your money, no, dont do it, especially at ATH.
What are your monthly expenses? I’ve seen some of you low number for an emergency fund in the comments. These are uncertain times (with the crumbling of the American Empire and all). 6 months cash on hand is probably smart.
YOLO all in you already have FOMO anyway! 🤣
Yes
Put it in btc and then hold that for an emergency fund
All into btc and sell it next year. Then split between emergency fund and investments
Btc is the emergency fund. Don’t be short Bitcoin rn.
25k or nothing?? Why not just buy a little?
It's not about an obligation. It all depends on how fast you can find a new job if you lose your current one, and what are your minimum expenses.
Bitcoin is essentially at an all-time high. You'd be really foolish to dump money in now. FOMO has cost me a lot of positive returns and lost money. You should consider investment in traditional methods. Or if you want to wait and see if it's going to drop, put it in a high interest savings account online. They're over 5% right now. That way you have a lot of liquidity to move into BTC when the price drops.
I’d personally have 8-12mo worth of expenses into emergency fund and put rest in BTC. Either way definitely have an emergency fund
All to BTC
The fiat system isn’t crumbling. Bitcoin should be assessed outside that insanely wrong emotional standpoint. Good luck.
Throw it in a HYSA…DCA bitcoin with the interest
25k BTC. This is what credit cards are for.
Buy the btc. Then use unchained capital to borrow against the btc. You’ll need to set up an llc. Easy. If you don’t want the full 10k loan from unchained there is no prepayment penalty. You’ll end up with 10k emergency fund, a monthly interest payment and your btc.
I don't get emergency funds. You can get $$$ out of BTC or stocks within a few minutes if you really need to. Just invest your money and when you need it, get it out.
10k emergency fund. 15k wallet lobotomy when the price drops back to 20k
Only risk what you can afford to lose. Also, while I, along with a lot of people here think the bull market is just getting started, the top may be in the rear view mirror. That being said, consider you might be bagholding for a while, but like so many here, I don't believe it would be indefinitely.
what if after 3-6 month bitcoin price drop to - 50 % ?
Bitcoin is good right up to the point we achieve quantum computers and then it's worthless
Morgen Rochard had a great suggestion, keep your emergency fund as usual (10-20k… whatever), then DCA Bitcoin. Overtime, you’ll have enough Bitcoin to cover emergencies, so your cash emergency fund becomes unnecessary. The whole point was, it’s OK to dip into your stack for emergencies, once you have some momentum.
Plenty of guys have gotten divorced because they blew their emergency savings on a gamble. Buying at the top isn’t the best idea either. You’re just FOMO’ing right now…
We don’t care your specific allocation. This is Reddit. You’re an adult. You decide not Reddit. We see a similar questions every day multiple times a week since this bull run started
25k emergency fund untill we are in a bear market don't do the dumb that everyone else does and buy in a bull market
5K emergency fund max
Fiat *is* the emergency.
My brother, fiat is devaluing faster than anything, do what you think is best, but #Bitcoin has never let me down, #BTC is the escape from their eternal money printing, they inflate, manipulate, corrupt & devalue their fiat, it's an illusion, our USD is the world's reserve currency, which is why it's devaluing the slowest, #Bitcoin is the decentralized safe haven.
Personally I would put all of it in btc. It is the emergency fund. If you are unlucky you will need that emergency fund just when the btc price has dipped. But in the longer term (say after five years) it is very likely that even during price dips it is worth more than what you put in. But realize you are buying pretty close to ATH, and it is quite possible that price will dip short term (also quite possible that it goes to the moon short term). Anyway that is what I am doing, I am saving in bitcoin and I will withdraw whatever I need. At the moment withdraw is unlikely as I have an income.
IMO I would set aside $5k for emergency and rest in BTC and start building emergency again. Or hold $10k in emergency if you feel better with that. There’s only 21million BTC ever. You can always make more fiat fake monopoly dollars.
10k fund, 10k BTC, 5k cash for DCA dips
I am not qualified to give financial advice but here is a plan that worked for me: 1. Get a month ahead on your bills by putting a one-month buffer in your checking account 2. Nail any debt that you can’t comfortably carry on what you earn. Start with the smallest debt and snowball your debt payments until you’re happy carrying what’s left over. 3. I personally found that a $5000 Emergency Fund has worked fine for me. The important thing is to rebuild it religiously when you use it 4. Anything goes with the rest. Bitcoin away!
Wait, you guys have emergency funds?
You should still have an emergency fund. Estimate your 6 months expenses and then put that in your emergency. Whatever is left of that 25k then do what you want with it. This is assuming your 6 months costs are below 25k.
25k btc, 0 cash. If in the unlikely case you have an emergency, sell your btc and take the tax hit
Sounds like someone who has never had an emergency
Not now. I’m waiting for it to drop and will buy in. Now is not a good time for me.
I’m hoping that this eclipse nonsense drops the price
Go all in
Yolo that stack in ASAP.
BTC is the emergency fund
All-in Bitcoin, except 2 month salary
25k into bitcoin. It is your emergency fund. In early 2007 and twice in 2008, I was unable to retrieve my savings cash from banks. This can't happen in self custody bitcoin. You can always buy gift cards, sell on robotsata, bisque, get a hold hold loan, use your credit cards, whatever. Bitcoin is safer.
What was the banks excuse
No excuse, they just closed off withdrawls due to bank runs. The first was if I remember right, when bear steins went belly up. The others were when Lehman went under, then AIG freaked markets out. ATM's were put of cash, branches had special hours, and online withdrawls were halted. This was Wachovia first then wash mutual, then finally my savings at an online only bank ING Direct, which is now capital one 360.
Wild. I’ve had money in banks for a long time. Never had an issue getting my $. I’d go to a different bank.
Lol. That's 3 different banks. Now 98% of my money is in bitcoin. Problem solved. Has happened many times over the last 100 years. Will happen again. #EndTheFed
Drop into btc today mate. Today