But what is meant is that its value dropped a lot โ that means:
> You still hold the same number of coins,
But each coin became worthless!
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A simple example ๐
Imagine you bought 1,000,000 coins for $100,
And the price of the coin was then $0.0001.
After a while, the market dropped and the price fell to $0.000001.
That means:
You still have a million coins โ
But now their value has become just $1 ๐
So youโd say:
> "I lost 99% of my money"
Even if the currency is still in your wallet!
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โ ๏ธ So why could the loss be complete?
There are several reasons that could make the currency actually worth โzeroโ:
1. The currency collapses or the team abandons it (Rug Pull)
This means the people who created it flee, or they close the project, so no one buys it again.
At that time, the currency remains in your wallet, but thereโs no market to buy it.
So it becomes like a worthless piece of paper.
2. Trading is closed on it
The platform removes it from the list (Delist), so there's no place to sell it.
Or thereโs no liquidity, meaning no one is buying or selling, so even if you want to sell, you won't find a buyer.
3. Major speculation (sharp decline)
Small currencies rise and fall wildly. They can drop 90% or more in hours.
And at that time, you might be afraid and sell at a loss, thus solidifying the loss yourself.
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๐ So should I leave it until it rises again?
Okay, a good idea in some cases โ but:
There are currencies that collapse and do not recover again.
And there are currencies that actually return after years (like Bitcoin back in the day).
So this depends on the type of currency:
If itโs a strong project really โ it might come back.
If it's a meme coin or a scam โ it collapses forever.
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๐ก Summary:
The currency itself might still exist,
But its value evaporates.
This means the loss happens when the price drops significantly or thereโs no one to buy.
The most important thing is that you donโt put all your money in one currency,
And you choose currencies with a real project or at least a strong community.