Bagholders

An investor who holds a bag for a prolonged period of time is called a ‘Bagholders’. They don’t sell their assets no matter what the situation, even if the value goes down. There are countless reasons for that. The focus of the investor, at every stage, is to get the profit back and cover up the present losses.

Bagholders refuse to sell their underperforming assets, expecting large gains from their current assets, which may perform well in the market in the unforeseeable future. We commonly refer to this effect as the “disposition effect”.

As cryptocurrencies are getting popular, more investors are coming in without concrete knowledge of the technology. Some of them are likely to forget about it and some might get bored. Mostly, bagholders are too busy to check how their assets are performing.