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Lessons for Beginners: Losing in CryptocurrenciesIf the cryptocurrency falls below the price you bought it at but you do not sell it, the loss remains theoretical or unrealized. This means that you have not actually lost money yet, because you did not sell the currency at a lower price than you bought it. A loss actually occurs only when you sell the cryptocurrency at a price lower than the purchase price. As long as you still hold it, you have a chance that the price will rise again in the future, and you can make a profit if the price rises above the purchase price.

Lessons for Beginners: Losing in Cryptocurrencies

If the cryptocurrency falls below the price you bought it at but you do not sell it, the loss remains theoretical or unrealized. This means that you have not actually lost money yet, because you did not sell the currency at a lower price than you bought it.
A loss actually occurs only when you sell the cryptocurrency at a price lower than the purchase price. As long as you still hold it, you have a chance that the price will rise again in the future, and you can make a profit if the price rises above the purchase price.
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