Taking profit, and why almost nobody does
The most common story in crypto is not losing money on a bad asset. It is being substantially up on a good one and ending with nothing.
Decide before you are emotional
Write down, before buying, what would make you sell. Not a feeling. A number, a date, or a condition. The moment you are up 400 percent is the worst possible moment to first consider the question.
Rules that survive contact with a bull market
- Take your original stake out at a multiple. At 3x, sell a third and you are playing with the market's money.
- Sell in tranches, not all at once. You will never pick the top and trying guarantees regret in one direction or the other.
- Rebalance on a schedule. If crypto grows past your target allocation, trim back to it. Mechanical, unemotional, effective.
- Have a life event trigger. A deposit, a debt, a year of runway. Selling for something real is easier to justify than selling for a number.
Why round numbers fail
Everyone puts orders at obvious round numbers, so price often stops just short. If your plan depends on a specific level, expect to miss it. Tranches solve this in a way that a single target never will.
BEFORE YOU MOVE ON
Common questions
When should I sell my crypto?
When the conditions you wrote down before buying are met. Deciding in the moment, while up a great deal, is how most people end up round tripping a gain.
Should I sell everything at once?
Selling in tranches is usually better. You will not pick the top, and tranches remove the need to.
Risk warning: crypto is highly volatile and largely unregulated. You can lose everything you put in. Nothing here is financial, investment or tax advice.