Problem Nobody Talks About
You bought a coin at $1. Now it's $3. You're up 200%.
Your brain is screaming two things at once:
"SELL NOW! Lock in profits!"
"HOLD! It could go to $10!"
This internal war has cost traders more money than any market crash ever could.
The Three Types of Sellers
The Paper Hands
Sells at 20% profit. Every time. Misses every moonshot. Safe but never rich.
The Diamond Hands
Never sells. Rides it to $10, then back down to $0.50. "It'll come back," they say. It doesn't.
The Smart Hands
Has a plan. Takes profits strategically. Still has exposure if it moons. Sleeps at night.
Guess which one makes money long-term?
Why Holding Feels So Good (And Why It's Dangerous)
Selling feels like giving up. Like admitting you might be wrong about the "next Bitcoin."
The crypto community doesn't help:
"HODL!" they scream
"Paper hands!" they mock
"You'll regret selling!" they warn
But here's what they don't tell you: Most coins that pump hard... dump harder.
The Real Numbers
Let's look at what actually happens:
Scenario 1: The Paper Hands
Bought at $1
Sold at $1.50 (50% gain)
Coin went to $5
"I'm an idiot," they think
Profit: $500 on $1,000 invested
Scenario 2: The Diamond Hands
Bought at $1
Didn't sell at $5 ("It's going to $20!")
Rode it back down to $2
Still holding, telling everyone it'll come back
Profit: $1,000 on paper at peak, $1,000 realized (eventually sold at $2)
Scenario 3: The Smart Hands
Bought at $1
Sold 50% at $3 (locked in 200% on half)
Sold 25% at $5 (locked in 400% on quarter)
Kept 25% for moonshot potential
Rode remaining 25% back to $2
Profit: $2,125 realized + still has $500 in play
Who won? Smart Hands. Every time.
The Taking Profits Framework
Here's a strategy that actually works:
Stage 1: Get Your Investment Back (2x)
When your investment doubles, sell 50%. You now have zero risk. Everything else is house money.
Psychology: This removes emotional attachment. Way easier to hold when you can't lose.
Stage 2: Lock Meaningful Profit (3-5x)
Sell another 25-30%. Take that money out of crypto completely. Pay a bill. Buy something nice. Make it real.
Psychology: Tangible rewards keep you motivated and rational.
Stage 3: Let It Ride (5x+)
Keep 20-25% for the potential moonshot. If it goes to zero, you already won. If it 10x's from here, you're really winning.
Psychology: No FOMO because you still have skin in the game.
When This Strategy Fails
It misses absolute tops. You'll never sell at the perfect peak. Accept it.
It leaves money on the table. Sometimes coins go from $5 to $50 after you sold most at $5.
It feels "wrong" in bull markets. When everything is pumping, taking profits feels stupid.
But here's the thing: It doesn't fail where it matters. You always make money. You never get completely wrecked.
Reading the Signs: When to Actually Sell
Beyond your planned exits, watch for these signals:
Volume Warning Signs:
Price pumping but volume dying = weak move, consider selling
Massive volume spike with no news = possible dump incoming
Trading volume 3-5x normal = euphoria, probably near top
Social Media Indicators:
Your non-crypto friends asking about the coin = top is close
Mainstream media covering it = often marks the peak
Everyone on Twitter screaming "WAGMI" = time to take profits
Chart Patterns:
Vertical moves that "feel too good" = never sustainable
Three failed attempts to break resistance = probably going down
Bearish divergence on RSI (price up, RSI down) = weakness
Personal Feelings:
You're checking prices every 5 minutes = too invested emotionally
You're calculating how rich you'll be at $100 = dangerous territory
You can't imagine it going down = sell signal
The Biggest Mistakes
Mistake 1: "I'll Sell at the Top"
Nobody sells at the top. Nobody. You'll always wish you held longer or sold earlier.
Fix: Use the staged exit strategy. You'll catch 70-80% of the move. That's a win.
Mistake 2: "It's Only a Loss If I Sell"
No. Unrealized losses are real losses. The money is gone whether you admit it or not.
Fix: If you wouldn't buy it today at current price, why are you holding it?
Mistake 3: "I Need to Wait Until Break Even"
The market doesn't care what you paid. That $5 coin you bought might never see $5 again.
Fix: Evaluate every position as if you bought it today. Hold or sell based on future potential, not past pain.
Mistake 4: "Just One More Double"
This is the greedy monster that kills portfolios. You have a 5x gain. "Just wait for 10x," you think. It dumps to 2x.
Fix: Define your exits before you're in profit. Greed clouds judgment.
Tax Considerations (The Boring But Important Part)
Every sale is a taxable event in most countries. This matters.
Strategy adjustment:
If holding under a year, you might pay higher short-term capital gains
If over a year, often lower long-term rates apply
Track your cost basis carefully
Consider tax-loss harvesting on losers
Recommendation: Don't let taxes stop you from taking profits, but factor them into your sell targets. If you need 2x after taxes, maybe your sell target is actually 2.5x.
The Mental Game of Taking Profits
When you sell and it pumps more:
You still won. You made money. Someone else's bigger win doesn't make your win smaller.
When you hold and it dumps:
Learn the lesson. Next time, take some profit. The market will give you another chance.
When you sell and it crashes:
You're a genius! For exactly one day. Then you'll doubt yourself on the next trade anyway.
Real Talk: My Selling Rules
Here's what I actually do:
2x = Always sell 40-50% (no exceptions)
3x = Sell another 20-25% (lock real profit)
5x = Sell another 15-20% (take something meaningful out)
10x+ = Keep 10-15% forever (the "what if" position)
These aren't perfect. But they keep me profitable and sane.
The One Rule That Overrides Everything
If you need the money in real life, sell. Period.
Crypto gains aren't real until you sell. That 10x doesn't pay rent. That 100x doesn't fix your car.
The whole point of making money is to improve your life. Don't sacrifice your real life for potential future gains.
Tomorrow's Action Plan
Look at your current holdings. For each one, write down:
At what price will I sell 50%?
At what price will I sell another 25%?
What's my stop loss if I'm wrong?
Put alerts at those levels. When they hit, execute. Don't overthink it.
