Part 7/10:
Maintain ample cash reserves: Ideally, 3-4 years’ worth of expenses in cash or highly liquid assets.
Diversify your assets: While Bitcoin can be part of your portfolio, it should be balanced with cash, gold, or other stable assets, especially given the potential for short-term volatility.
Avoid overexposure: Be cautious about risking too much of your wealth in Bitcoin, as a significant downturn could jeopardize your financial stability.
Moreover, it’s prudent not to invest your entire savings into Bitcoin, especially if your income relies heavily on pensions or social security. The goal is to guard against adverse market movements—by holding enough cash to cover living expenses and a Bitcoin position for long-term growth.