Selling at a loss in cryptocurrency trading is often considered a mistake because it can exacerbate losses rather than make up for them. Here are the main reasons:

1. Controlling emotions

Selling at a loss is often the result of emotional decisions (fear or panic) rather than based on a rational analysis of the market.

Markets are volatile by nature, and coins that have fallen in value may recover after a short period.

2. Fixing losses

When you sell at a loss, you turn a theoretical loss (loss on paper) into a real loss.

If you hold on to the asset, you may be able to recover your investment or make a profit if the price rises later.

3. Opportunity for a well-thought-out exit

Selling at a loss without an exit strategy or understanding of the market can deprive you of the opportunity to minimize losses or make gains in the long run.

4. Not taking advantage of technical analysis

Random selling decisions ignore the technical or fundamental analysis of the currency, leading to missing out on price rebound opportunities.

5. Impact of Whales on the Market

In cryptocurrencies, big moves may occur due to whales (large investors), and the decline may be temporary, which means that selling at a loss may be an overreaction.