The sunk cost fallacy and your crypto portfolio. Cutting your losers is important.

The sunken cost fallacy is the known tendency of humans to continue with investing (or doing) in something while the amount of money or time we put in to it does not outweigh the benefits. When we get trapped in it, we stop making rational decisions and just "mindlessly" keep on going.

So how is this relevant to cryptocurrency investing? It is for those projects (or moonshots) where you keep being active in, keep investing in, while realistically you should know you will not yield the benefits anymore that will make it worth.

It's a tricky thing, as you might convince yourself, with help of "influencers" that it is worthwhile to keep investing. Yet, at some point it is better to cut your losses. Would you rather cut losses and reinvest in something that has a realistic likelihood of succeeding? Making up at least part of your losses, or turn it in to profits even.

Be aware of the sunk cost fallacy in relation to your portfolio and decisions. Cut your losses when you should.