In the world of cryptocurrencies, there is no doubt that sharp price fluctuations can be stressful and trigger emotional decisions. You may find yourself looking at your portfolio and thinking about selling everything you own to avoid bigger losses. But before you make that decision, let's consider some reasons why you might want to hold on to your cryptocurrencies even in difficult times.
1. The market is volatile but history shows that it is growing
If we look at the history of cryptocurrencies, we will find that there have been periods of sharp declines followed by significant rises. Bitcoin, for example, experienced several cycles of sharp declines before making a comeback and achieving record highs. Continuing to hold your coins may be the key to profiting when the market returns to growth.
2. Don't lose until you sell
As long as you do not sell your coins, your losses are just unrealized losses. When you sell currencies in a period of falling prices, you turn these losses into reality. Holding your coins may give you the opportunity to recover losses and make profits in the future.
