Bags
A bag is a significant amount of a particular cryptocurrency coin or token that an individual holds in their portfolio.
What Is a Bag in Crypto?
The term “bag” has often been used to refer to wealth or financial gain. A common catchphrase that you may have come across is “chasing the bag,” which defines the pursuit of money, wealth, or success. But what does the word “bag” mean in the crypto space?
In the crypto context, a bag refers to the digital assets or contents someone holds in their cryptocurrency portfolio. Also referred to as “holding the bag,” it describes owning some quantity of a particular cryptocurrency asset. Even so, how much crypto one has to hold to be considered holding a bag is unspecific.
Sometimes, the term is used sarcastically to describe holding large quantities of a cryptocurrency when it’s losing value or underperforming. For example, when a rug pull occurs and the project becomes worthless, it can be said that the investors are left “holding the bag.” Additionally, pump-and-dump schemes leave victims holding a metaphorical bag of devalued assets.
What Are the Derivations of Bags?
Some of the most common expressions related to the term include:
- Bagholder – Defines an investor that holds large quantities of a particular cryptocurrency for an extended period regardless of its performance. Sometimes bagholders cling to poorly performing assets hoping for a recovery that may never occur. To put it another way, bagholders believe that the potential long-term gain will outweigh the immediate losses.
- Moon bags – Refers to a specific amount of a coin(s) you hold for long periods with the anticipation that it will significantly increase in value over time. Put simply, you expect your cryptocurrencies to “go to the moon”.
- Heavy bags – a heavy bag describes a significant amount of cryptocurrency that has lost value, especially when you bought the tokens at a higher price. In that case, heavy bags leave you with assets of less value than what you paid for.
- Don’t marry your bags – This is the concept of not holding onto your coins and tokens for too long. It applies to bagholders who hold onto their assets even when it seems rational to sell, especially when the market is rapidly losing value.
