Everyone of us has experienced this feeling — holding onto a coin at a loss but not wanting to sell, hoping it will bounce back. But when the price rises, we sell immediately to take profits. Why is it so hard to control our psychology like that? I realize that holding onto losses seems easier than holding onto profits, and it can be very harmful if you don’t understand the true nature.

Humans tend to fear losing what they already have more than missing out on new opportunities. When asset prices drop, the brain clings to false hope that we create ourselves, then forgets to assess the real risks. That’s why holding onto losses is tougher — we don’t want to accept failure, so we keep our positions and wait.

In crypto, this becomes even more complicated. Without skills in reading market waves or technical analysis, decisions to hold losses can lead to significant losses. I’ve seen many people lose 20-30% and then give up entirely, no longer thinking rationally.

But here’s the key point — holding onto losses isn’t always wrong. If you understand the project well, knowing it has a solid foundation but the price just hasn’t increased yet, then DCA and holding the coin is the right decision. Solana is a typical example. The SOL token once rose from $5 to $240, then fell back to $100. Many sold immediately to lock in profits, but those who understood the project kept holding and waiting, eventually making huge profits.

There are phases of prolonged downtrends lasting months. Many altcoins, NFT-Fi tokens seem to be at the bottom, but when the market recovers, they can increase 10-20 times. That’s why deep understanding of the project and market cycles is key.

Therefore, both holding losses and holding profits are essential skills, but they only work when you have solid knowledge of the market and the projects you invest in. Otherwise, holding losses becomes stubbornness, and holding profits turns into panic.