Bagholder is a term used in the crypto world to refer to investors who buy crypto assets at high prices, then the prices fall sharply after that. They are stuck with an asset that has experienced a large decline in value compared to the purchase price.
Bagholders have the following characteristics:
Buying crypto assets when prices are bullish or at the peak of the bull market, driven by FOMO.
Continue to hold the asset even though the price has fallen compared to the point of purchase.
Experiencing a big loss (paper loss) because the price fell far from the purchase price.
It is difficult to accept the fact that their investment failed. Still believe prices will rise again.
Often emotional and the target of ridicule in the crypto community.
Considered an irrational and naive investor.
Examples of “bagholder” in use in sentences
“He bought Bitcoin at over $60,000 and now it’s worth $20,000, he’s a real bagholder.”
“Don’t FOMO buy at peak prices, you could end up being a bagholder when the crypto market crashes.”
“Learn first before investing, don’t just buy because you’re afraid of missing out and becoming a bagholder.”
“He always defends his crypto project even though the price has fallen 90%. It seems he is a loyal bagholder.”
“Bagholders are the most unfortunate investors in the crypto world, they have to learn from their mistakes.”
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