5 Years in the Crypto Market, I Have Derived One Single Truth: The Money in Your Pocket Is Your Own Money

In the cryptocurrency market, “paper wealth” has never meant real wealth. The numbers bouncing on the screen can make us excited, but only when profits are locked in and withdrawn does it truly belong to you. After five years of ups and downs with crypto, I realize: it’s not how much you have earned, but how much you manage to keep in the end. The Dream of Quick Wealth and the Price to Pay In 2023, a friend of mine invested $20,000 in altcoins. In just three months, his account swelled to $300,000. To everyone, it was a “miracle.” We—those who have gone through several cycles—advised him to start taking profits gradually. But he just laughed: “A few hundred thousand, wait until it hits a million dollars before deciding.” The outcome was painfully familiar. Less than half a year later, his account was down to just over $10,000. Profits vanished, and nearly half of his capital was lost. That story is not rare in crypto. Many people are not necessarily unable to make money, but they don’t know when to stop. I have been there too. At the peak of the previous cycle, my account reached nearly $1.8 million. Every day, I only thought one thing: “One more doubling and I’ll retire.” But the market doesn’t operate according to personal wishes. When the trend reversed, I only managed to keep about $400,000. That period caused me sleepless nights and made me wonder: if I had the discipline to lock in profits back then, how different would my life be? From that fall, I understood: winning or losing in crypto isn’t about reaching the highest peak, but about how much money you can take away in the end. Why Are We Always Late in Locking Profits? The crypto market amplifies human emotions to extreme levels. When accounts grow rapidly, the brain easily falls into a “gambling mode”: always believing that the next bet will be bigger than the last. We get stuck between two fears: Fear of selling early and missing the next rallyFear of profits turning around, but dreaming of selling at the peak This tug-of-war causes most investors to hesitate exactly when decisive action is needed. Additionally, the large daily volatility of crypto (10–20% makes profit-taking even more difficult. My Three Principles for Locking Profits After many years paying tuition, I built a simple but disciplined profit-taking system.

1. Multiply Profits, Withdraw Principal The first principle: when an investment increases significantly )several times(, a portion of the principal must be withdrawn. This isn’t about maximizing profits, but about freeing the mind. Once the capital is safe, the remaining is just “running” profits, and you will trade much more calmly.
2. Flexible Profit Locking, Let Profits Run For the remaining amount, I use a dynamic profit-taking strategy. It could be: Setting stop-loss levels based on short-term moving averagesOr accepting a certain correction from the peak )for example 15–20%( This approach helps me avoid exiting the trend too early, but also prevents profits from evaporating when the market reverses.
3. Look at Market Position, Not Just Price I always observe cycle indicators and market sentiment. When multiple signals indicate extreme euphoria, I start gradually selling, regardless of whether the price can go higher or not. No need to sell at the exact top, just sell high enough. Practical Profit-Taking Strategies For long-term investments, I break down profit-taking into stages. When reaching the first target, sell a part. When hitting the next target, sell more. The rest is kept with a clear stop-loss discipline. For short-term trading, I prioritize taking profits at resistance zones and when the market becomes overheated. The most important thing isn’t the tool, but always having an exit plan before entering a trade. A “non-chart” signal I always trust: when mainstream media is heavily reporting on crypto, and people who have never cared start asking “which coin to buy,” that’s usually when the market has gone too far. Exit Plan at the Peak of the Wave Every cycle has an ending. Instead of trying to pinpoint the exact top, I choose a systematic retreat: gradually selling over time to reduce emotional risk. Bitcoin can be partially held as a long-term core, but altcoins—those that rise quickly and fall just as fast—should never be “long-term dreams.” True Wealth Is Not About a Number, But Knowing When to Stop The biggest mistake in crypto is believing that financial freedom is tied to a specific number. In fact, freedom comes from the ability to control greed. The market always paints a higher outlook, but wise investors know when to get off while the road is still flat. My current philosophy is simple: don’t sell at the peak, just sell enough to survive and re-enter in the next cycle. Money can never be fully earned, but capital can be wiped out in a single mistake. Before the next wave hits, ask yourself: this time, how much are you planning to take away?