Whether you're holding crypto assets or trading actively, having an emergency fund is non-negotiable. Most financial advisors recommend keeping 3-6 months of living expenses in liquid, stable reserves. This isn't about being risk-averse—it's about playing smart. Here's why: market downturns happen, opportunities knock unexpectedly, and life throws curveballs. Without a cushion, you might panic-sell positions at the worst time or miss buying the dip. Start small if you need to. Even setting aside what you can each month builds momentum. Keep it separate from your trading capital. Use stablecoins if it makes sense for your workflow, or traditional savings if that fits better. The goal? Peace of mind. When you know you're covered for emergencies, you make better decisions with your crypto portfolio.