Sad fact that new traders think trade is only buy and sell and hold. When coins that they hold not give good value for long time, they don't have any other strategies to get out from loss then make decision to cut loss and retired from trading.
well, it's natural when they think like that. basically, trading does look like buying and selling. however, they did it with their will. the most important thing about it is finding information before trading. without doing that, of course panic sell will occur.
People who panic normally loss, we have a lot of traders and investors in crypto but there are some who just invest to loss their money.
They enter in the market without making a research, that's why they loss, they are newbie who think that making money in crypto is easy and can give quick returns.
Panic only occurs when they don't understand more about the coins they trade, if they only sell, buy and hold it doesn't matter while they are aware of the potential of each different coin. At least if they know about the potential of each coin they use, the possibility of panic and loss can be avoided.