What is a Bag Holder?

The person who stocks the crypto coins that he believes will make good profits in the future by buying high numbers at low prices is called a bag holder.

There are different types of investing in stock exchanges. Some traders buy and sell by following the short-term movements of prices. It aims to make a profit by taking advantage of the rapid changes in prices. Some investors buy and hold the product they predict will rise at the lowest price they can buy. Such investors look at the technology of the cryptocurrency, the price movements in the past or the strength of the companies that invest in this cryptocurrency, thinking that the crypto money will be valued in the future

it holds up in the long run. Investors may also think that there will be an IPO or that the crypto coins that have just started the IPO will bring profit in the future by buying high volumes. It is known that the term bag holder comes from the period of economic crisis called the Great Depression, which started in 1929 and lasted throughout the 30s. It is said that it was created inspired by the people who put all their belongings in empty potato sacks and waited in the soup queue and was included in the modern investment world.

Bag holder investors buy from safe zones and wait patiently even if the price of the crypto money they receive falls, they do not sell. This behavior will have positive results in the long term if the crypto money rises depending on the strength or the change of the market. However, bag holder investors can hold on to the crypto money enough to expect it to save its cost as well as bring profit. An investor who succumbs to the expectation of savings or the sunk cost fallacy may unreasonably cling to his position for a long time. Because for some investors, this situation turns into ambition and they cannot accept that the invested asset will not rise again. It has been observed that in such cases they tend to lose money. Even if investors want to keep the products in the basket for the long term after creating an investment basket (bag), they should listen to the buy and sell signals by following the price movements of the crypto money they invest in, the news about the crypto money and the general market and sell when necessary to make a profit. If they invest in this way, they have a better chance of maximizing profit and minimizing losses. 

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