Bagholder
What Is a Bagholder
A bagholder in the context of cryptocurrency is an investor who holds onto an asset that has significantly declined in value, often to the point where it is considered worthless or nearly so. This term, which originated from traditional finance, is used somewhat pejoratively to describe someone who continues to hold onto a failing investment, hoping for a recovery that may not happen.
Bagholders typically become such by either buying into hype or failing to sell an asset when it starts to decline, often driven by emotional attachment or misinformation. The term paints a vivid picture of an investor left "holding the bag" of nearly worthless assets, having missed the opportunity to sell at a better price.