A bagholder is an investor who holds (or hodls) a particular coin even when its value is dropping. Imagine that you bought a coin hoping that the price will go up but instead it starts dropping so low that the coin becomes worthless. So, you are left holding a bag full of worthless tokens. That’s what makes you a bagholder. You can become a bagholder for many reasons. Let’s say you made an inadequate analysis of the coin or market while investing. Now, you’re too stubborn to get rid of the coin because taking a loss will make you feel bad about your decision or you might be hoping that the coin will go up again. Either way there is no bright side as you certainly lose most or all your money in the process of bag holding! Often the best move is to drop the bag, learn the lesson to take small losses quickly, and move on.
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