Bagholder | CoinMarketCap

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CMCGlossary: Bagholder ✨ An investor who continues to hold large amounts of a specific coin or token, regardless of its performance. 👉 Details:

There are several potential reasons for this. The most simple is that the investor believes the potential long-term gain will outweigh any immediate losses. Alternatively, they may be laboring under the sunk cost fallacy.

Bagholders are also sometimes affected by the “disposition effect.” This refers to the practice of refusing to sell poorly performing assets, but realizing gains in other assets very quickly.Perhaps most commonly though, bagholders may simply be too time poor to keep up with the performance of the assets they hold.

This can pay dividends. There have been many stories of first-time investors who bought Bitcoin many years ago, forgot about it, and then discovered that they were sitting on hundreds of thousands of dollars — and sometimes even millions.Bagholding is closely related to

 

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