Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
It is true, but if you do not sell your coin and still hold when the price is down. You will have a chance to see your coin price increase someday so you will be back to see the high price for your coin and make a profit. But many traders decide to cut loss their coin when the price is down with the hope that they can buy back at a lower price. I think that will depend on their strategy to be applied in the trading and every trader will have their own strategy to the current situation in the market.
Cut loss and buy back is kinda basic thing to do once market is at bad situation but unfortunately not everyone can able to do that since many is unsure about what will be the outcome at the end of the day, also they are afraid on what will happen if they are out and didn't follow at the market at that day but hopefully other will realize that cut loss is best option for us to recover if we lose in value but also make sure the coins or the tokens we buy is listed at the top and a worthy one.