When bitcoin drops to $30000, this is a disaster for most traders who buy bitcoin and altcoins at a price high. We didn't expect bitcoin to fall this low, so causing altcoins prices to be dumped very deeply. For traders who have already lost over 25% in trading, then it is best not to cut losses because it will make lose some capital. So believe me, the bitcoin price will back up again and altcoins price will rise again.
If you are an actual trader then you got features to save yourself from such crashes like stop loss so you can leave the market with small loss instead of losing half of your capital. And if you missed to exit in that way then you have two choices, whether you can hold until the price increases or accept your loss and start focusing on making the profits with current market movements.
Most probably, traders will take the cut loss option rather than to get stuck and waste their time waiting for the recovery. Because in their minds that if they don't move, if they don't sacrifice those few losses, the more chances that they got paralyze, and most likely they will not call themselves as a trader.
But I was to assume that OP isn't a pro-trader, he just knows about trading but in a situation like this, he prepared to become a holder, not being a trader anymore. Well, there is no wrong with that.
I dont think that would be their option because they can always choose to hold than on cut loss unless if they had put up stop loss then that would surely be considered as lost totally
but if they do have the chance to break even then they would really be choosing up to hold and use up their back up funds to continue their position or dealing with volatility.
There are really instances or situations where you dont have any choice but to do it even though its not meant to be hold but due to situation then you wouldnt have any choice.
Is there something wrong with this? I dont think it can really be avoided aside if you had been liquidated.