As we enter the next bull run, we can’t overemphasize the importance of taking profits.
When you make that major profit, make sure to take a big chunk of it off the market and into stablecoins or fiat to save or spend on yourself and your loved ones.
To prepare you for this, I scoured all crypto social media channels for the best tips on taking profits and how to prepare yourself for the next bear market.
Best tips on how to take profit in crypto
The below crypto profit-taking tips are not in any particular order, and you can mix them as you want to create your own winning profit-taking strategy.
The goal is for you to get a general idea of taking profit in crypto to build, grow and protect your wealth. Observe them all and you will be an unbeatable player in the market.
- Taking profit is easy when you realise that it’s all a scam and everything will eventually crash again.
- Never sell all at once. Scale out at predefined price points. Set your own profit target and stick to it. But also try to be flexible to accommodate the changing market dynamics or follow the ones below if they work for you.
- With small caps, you may want to take some profit before a 3x to 4x. With blue chips like BTC, you can take profit at a 2x.
- Remove your original capital after 100% or 2x gains and ride the rest to Valhalla.
- After 10x gains, start selling 10% to 20% of your bag at predefined price points to DCA out.
- After what you consider a massive gain, sell 90% of your bag and hold the rest as a moon bag, just in case.
- Never sell your entire bag of a high-conviction play unless you have lost the conviction. Keep 10% to 1% as your moon bag.
- Your portfolio size and risk tolerance play a big role in your crypto investing and profit profit-taking strategy.
- Don’t just adopt a strategy just because it works for someone. You’re not in the same situation as them. Develop your own strategy based on your unique circumstances and investment goals.
- Start selling when the hype is too loud or immediately the dump starts after a massive bull run. You’ll know when you see it. Just make sure you follow through.
- Sometimes, the price will continue to pump after you sell and that’s okay. You will never be able to sell at the ultimate peak or buy at the absolute bottom.
- Take profit into stablecoins and stake or lend them on reputable protocols to earn yields. (low risk).
- Take profit into fiat to spend in real life or use it to start an offline business. You can then reinvest your profit from the business into crypto in the bear market ahead of the next bull run.
- Take profit into blue chip coins like BTC, ETH, BNB, etc, and HODL or use them to farm legit and confirm crypto airdrops (low risk).
- Take profit from shitcoins and reinvest into high conviction plays or mid-cap altcoins such as INJ, LINK, ARB, etc. (medium risk).
- Never rotate profit from one shitcoin into another shitcoin. If you must for any reason then only use 1% to 10% of it and nothing more. (high risk)
- After a major win with a token, take a break and don’t immediately buy back (if ever). Wait for the price to “die” and if the fundamentals are still intact then buy back at far lower prices.
- Be cold with taking profits. Someone has to be the exit liquidity, it’ll be you or other market participants. It’s nothing personal, that’s how the game works.
- Your goal should be to extract maximum profit in a bull run and patiently wait for the inevitable bear market that follows to buy cheap gems ahead of the next bull run. Play the market cycle like a Pro.
- Nobody has it all figured out here. We’re all constantly learning and adapting to the changing market conditions. So, remain teachable and flexible if you want to survive and thrive.
For a more detailed guide on how to take profit in crypto, read my previous article: