Bag Holders in Crypto: Risks and Rewards

Bag is a crypto-slang for identifying a large amount of a particular cryptocurrency. It is also ( but less frequently) used to refer to the contents of an individual’s crypto portfolio.

What is Bag?

According to the first definition, there is no universally accepted threshold at which someone’s crypto holdings are considered a bag, but it is generally accepted to refer to the amount of a given coin that is above average. Extremely large bags of a particular cryptocurrency are sometimes referred to as a “heavy bag.” This concept is useful for distinguishing between different coins or tokens in an individual investor’s overall portfolio. Depending on market conditions for each particular asset, an investor may have both well performing and poorly performing packages. In such cases, “bag” is closely related to the term “bag holder,” referring to an investor who does not sell his or her stake in a particular coin or token, even if it falls sharply in value.