An investor who ends up holding a severely devalued asset. This often happens to inexperienced market participants who:
As a result, a bagholder is left with a loss, often a significant one, hence the image.
- Buy the hype, expecting further growth,
- Fail to notice signs of a scam or a collapsing project,
- Fall victim to a pump-and-dump scheme,
- Hold the asset for too long and miss the chance to sell before a crash.
As a result, a bagholder is left with a loss, often a significant one, hence the image.