The term “bag” describes a person’s portfolio of coins and tokens in the cryptocurrency ecosystem. The term usually refers to a sizeable quantity of a specific cryptocurrency. Although there is no set minimum, one can argue they are holding “large bags” of a particular coin or token if the value is high.

The phrase helps identify various coins or tokens within a person’s total portfolio. Depending on the market circumstances for each asset in issue, an investor may have both good and bad baggage. In these circumstances, the term “bag” is closely connected to “bagholder,” which describes an investor who keeps their ownership of a particular coin or token even when its value falls sharply.

Bagholders are hence HODLers who maintain their holdings despite a severe decrease in the value of their bags (during strong bear markets).

The reasons why an investment becomes a bagholder are the subject of numerous hypotheses. On the one hand, some investors merely don’t pay attention to what the market is doing. On the other hand, they either don’t have the time or don’t care to monitor their coins’ performance because they firmly believe that their bags will be valuable in the future.

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