October 15, 2022

What are the risks of investing your emergency fund in bitcoins?

First let us know the meaning of "emergency fund" is a separate bank or savings account that is used as a first line of defense to the expenses of an unforeseen situation.

This emergency fund must have the characteristic of being always available since we would need this money immediately. Therefore, this would be the first disadvantage we would have when investing in bitcoin.

The second characteristic it would have to have would be stability in value since if we have a fund of 500 dollars and the market goes down when we need the money, we would have the disadvantage of obtaining less money than we had saved.

In the third characteristic, bitcoin has an advantage with its low cost of commissions and the fact that in certain banks you must have a minimum balance to have the money in an account and this is not necessary when investing in bitcoin, but it is still not considered a good idea because of the constant changes in the market.

In conclusion, we recommend you look for the best bank, with the best rates and benefits since bitcoin is very unstable to save your emergency fund.

Tags: Consulting, Business, Advice