Who is a bagholder?
A bagholder is a person who holds onto cryptocurrency despite a significant drop in its value.
Bagholders often continue to hold their coins, hoping for a price recovery, even when other investors have already sold and realized their losses.
Reasons why people become bagholders:
đ” Some bagholders believe in the long-term success of the project and its fundamental value.
đ” After holding onto cryptocurrency for a long time, people may develop an emotional attachment to their investments.
đ” Admitting losses can be psychologically difficult, and bagholders may prefer to hold onto their coins in the hope of growth.
đ” Some bagholders may not have the time or desire to actively manage their investments.
Risks for bagholders:
đ” Holding onto cryptocurrency whose price continues to fall can lead to significant financial losses.
đ” While bagholders keep their coins, they might miss out on other investment opportunities.
đ” Watching the constant decline in the value of their assets can cause stress and anxiety.