Expert Warns XRP Holders: Avoid This Costly Crypto Mistake in 2026
Another day, another pundit warning crypto investors about pitfalls—this time targeting the XRP army specifically. The advice? Don't fall for the classic, expensive error that keeps draining portfolios.
The Trap: Chasing Noise Over Signal
Markets thrive on volatility and hype. For XRP investors, that often translates into reactive trading based on social media frenzy or short-term price swings. Experts point out this emotional whiplash strategy rarely pays off—it mainly enriches exchanges through fees and slippage.
The Alternative: Structure Over Sentiment
Instead of frantic buying and selling, the recommendation shifts toward disciplined frameworks. Think dollar-cost averaging, clear exit strategies, and ignoring the 24/7 news cycle that treats every minor update like a world-changing event. It's the boring stuff that usually builds real wealth.
Why This Matters Now
With regulatory clarity slowly emerging and institutional adoption creeping forward, XRP's ecosystem is maturing. The players making expensive mistakes today might miss the next leg up entirely—a familiar tale in finance where patience is praised but panic is often practiced.
Bottom line: The most expensive mistake isn't always buying high or selling low. Sometimes, it's just paying too much attention to the wrong voices. After all, in crypto, the only thing more volatile than the charts can be investor psychology itself.
Selling XRP To Take Profits Is Not The Way
Max Avery, a staunch XRP supporter, went to the X platform to warn investors of an expensive mistake they could be making. According to the pundit, selling off XRP coins right now in a bid to “take profit” could turn out to be a very expensive mistake for investors.
According to Avery, by selling their coins, XRP investors are not just risking losing their coins, but also getting themselves on the hook for taxes. Explaining further, Avery said that the sell-off could trigger a 15-37%, depending on the jurisdiction.
After doing this, to get back into the digital asset, investors are now burdened with trying to time the market and figuring out the best time to re-enter the altcoin. Essentially, trying to call the bottom, something that has been historically NEAR impossible to do.
Instead, the pundit tells investors that rather than selling off their their coins, it is better to borrow against the asset. This way, investors are able to get cash to spend when needed, while also maintaining their token holdings. Additionally, this triggers no tax event, making it easier to spend.
How XRP Is Faring
Some interesting developments surrounding XRP during this time include the fact that its open interest has seen a major crash, data from Coinglass shows. It went from a peak of over $10.8 billion to sitting below $3 billion at the time of writing. Since open interest is the total of the contracts open on the cryptocurrency, it means that participation among traders has waned for the digital asset.
In the same vein, daily trading volume has also seen a notable decline. In the last few months, XRP’s daily trading volume has trended below $10 billion, a stark contrast compared to the $78 billion that was recorded in late 2024.
These trends suggest that XRP is now in a bear market, especially as investors begin to take profits from the market. However, times like these have often helped to mark a bottom in the past, and if that is the case here, the altcoin may be gearing up for a rebound soon.
