Taking profits in crypto is one of the most overlooked yet critical aspects of investing. Everyone talks about making gains, but locking in those gains – that’s where the magic happens.
In this post, we’ll break down the strategies and tools you need to ensure you’re not just making money but keeping it.
If you want to learn my entire system, covering how to build a strong portfolio, systematically trade altcoins, and cash out before the next crypto winter, read this article instead:
The low-risk system I used to 20X my money in 16 months.
1. Use a Tiered Profit Approach
Don’t cash out everything at once. Instead, sell in tiers to maximize gains while minimizing risk.
- How it works:
Break your total position into smaller chunks, such as 25%, 50%, and 25%. Sell each chunk at progressively higher price points. - Example:
Imagine you hold 10 Ethereum bought at $1,000 each.- Sell 25% at $1,500 to lock in initial gains.
- Sell 50% at $1,800 to secure most of your profits.
- Keep the remaining 25% for a potential run to $2,500.
This ensures you’re always walking away with something while leaving room for more upside.
Here’s an example of when I told subscribers of The Premium Newsletter that I booked 30% of my profits after a 4X trading Solana.
Why didn’t I sell it all? Because I knew it had the potential to go higher.
Why did I sell anything when I thought it was going higher? To de-risk my position in case I was wrong.
2. Book Profits Early: The 5% Rule
Aim to sell just before the market hits your target. I always realize profits 5% below the target price.
It’s better to lock in 95% of potential gains than to hold out for that last 5% and risk losing it all.
- Why this works:
Markets are unpredictable, and prices often reverse before hitting your ideal number. - Practical tip:
If your target is $2,000, consider selling at $1,950. You’ll lock in most of the gains and avoid the stress of waiting for perfection.
3. Use Technical Analysis to Set Targets
Technical analysis (TA) is your best friend for identifying realistic profit targets. Charts don’t lie, and they can help you pinpoint where the market might turn.
Don’t know how to analyze price charts? Click here to read my beginner guide on technical analysis for crypto investors.
- Key tools:
- Support and Resistance Levels:
Identify price points where the market has struggled before. These levels often act as barriers. For example, if Bitcoin’s resistance is $50,000, consider taking profits at $49,500. - Fibonacci Levels:
Use Fibonacci retracement and extension tools to find key price levels. If a coin is approaching a 161.8% extension, that’s a great spot to sell. - Trendlines:
Draw trendlines on the chart. If the price is approaching the upper trendline in an uptrend, it’s a good signal to lock in profits.
- Support and Resistance Levels:
Technical analysis of altcoins is a great skill. It allows you to swing trade altcoins for massive gains over time.
4. Automate Profit-Taking
Why stress over manual trades? Use tools like limit orders to automate the process.
- What to do:
Set a sell order to execute automatically when your target price is hit. This removes emotion from the equation and ensures you stick to your plan. - Pro tip:
Use trailing stop-losses to let your profits run while protecting yourself from a sudden reversal. For example:- Set a trailing stop 10% below the current price.
- If the price rises, your stop loss should follow.
- If the price falls, your stop-loss triggers, locking in gains.
5. Reinvest Your Profits
Once you’ve taken profits, don’t just sit on the sidelines. Reinvest into safer assets or diversify into new opportunities.
- Ideas for reinvestment:
- Move gains into Bitcoin or Ethereum for stability.
- Diversify into promising altcoins with strong fundamentals.
- Keep some profits in cash to prepare for dips.
This strategy keeps your portfolio balanced and ready for the next opportunity.
Conclusion: Lock It In
Taking profits is what separates a disciplined investor from someone relying on luck. By setting clear targets, using technical analysis, and automating your strategy, you can maximize your gains while minimizing stress.
Remember, the market doesn’t care about your emotions. Lock in profits early and often, and you’ll always be one step ahead.
Are you leaving gains on the table?
Most crypto traders miss out on life-changing profits because they don’t know:
1️⃣ When to take profits
2️⃣ Which altcoins are worth holding
3️⃣ How to trade cycles effectively
This isn’t about luck—it’s about strategy. And Premium is your secret weapon.
With Premium, you’ll get:
1. Real-Time Profit Alerts
I’ll tell you whenever I buy/sell anything. I’ll send you an email with what, why and how much I bought/sold.
2. Altcoin Gems with High Potential
Don’t waste time hunting for the next big coin. Every month, I analyze the market to deliver 3-5 altcoin picks with massive growth potential. We’re talking 25X – 1,000X potential, ranked by risk level.
3. Exit Strategies Simplified
The key to making life-changing gains in the altcoin market is to time The Altcoin Cycle. This cycle tells you exactly when altcoins underperform and overperform Bitcoin, making altcoin trading a walk in the park. I continually update Premium Investors on where we are in the Altcoin Cycle, and exactly what I’m doing about it.
Why Premium Matters
You can make 10x gains on paper, but unless you know how to take profits, those gains can vanish overnight. Premium equips you with the tools to not only grow your portfolio but also keep those profits in your pocket.
👉 Join Premium now and make your altcoin trading stress-free.
Your next move could change everything. Don’t leave it to chance.
Click here to read more about Premium
See you inside,
Oskar