Can Crypto Serve as Your Emergency Fund?

Your emergency fund should consist solely of cash, not investments like crypto or stocks. When you put $10,000 into the bank, that sum can't go down -- unless, of course, you take withdrawals. That's not at all guaranteed to happen with investments like stocks or crypto, which can fluctuate. If you're serious about protecting yourself from financial surprises, make sure to house your emergency fund in the bank. The amount of emergency savings you decide to amass should hinge on factors such as how secure you feel in your job, how flexible your bills are, and whether you have dependents. For example, a six-month emergency fund worth $18,000 suffices for your needs, but if you manage to save an extra $2,000 Source