Why Taking Profits in Crypto Isn’t Just Smart—It’s Essential

As the crypto market edges closer to what many believe is the end of another cycle, investors face a key decision: hold on, or take profits? While it’s tempting to keep chasing more gains, many traders end up watching their portfolios shrink—because they never took the time to cash out when they should have.

Instead of “take profits,” they just “take pictures” of their green portfolios. But here’s why realising your gains is non-negotiable in crypto.

1. For Every Bull Market, There’s Always a Bear Market

Let’s be real—crypto moves in cycles. Every bull run eventually leads into a bear market. Historically, crypto enjoys a three-year uptrend, followed by a one-year correction or downturn. So if you've been enjoying solid gains over the past couple of years, the risk of a downturn is rising. Rather than being caught off guard, reducing your exposure now can help lock in profits before prices start to slide.

The truth is: not taking profits in a bull market often means riding your gains all the way down again.

2. Taking Profits Supercharges Compounding

While perfectly timing the market is near impossible, taking profits during high points gives you dry powder to buy back in at lower levels. If the market corrects—as it always does—you can potentially scoop up the same coins at a discount. This not only preserves capital, but also boosts your compounding power in the next cycle.

Imagine selling a coin at $10 and rebuying it at $5. You now hold twice as many coins for the next rally. That’s smart money at work.

3. Getting Stuck at the Top Could Mean Waiting Years

Here’s a painful truth: If you bought Bitcoin at its all-time high of $60,000 in April 2021, you had to wait nearly three years—until February 2024—just to break even. That’s 1,000 days of waiting with zero returns, or worse, staring at a red portfolio.

Sure, prices eventually bounce back, but time is money. That capital could have been better allocated elsewhere during the downturn. Taking profits helps avoid being “bagheld” for years, especially if you made large lump-sum buys near the top.

4. DCA Isn’t for Everyone

Dollar Cost Averaging (DCA) is often touted as a safe way to enter the market—buying a fixed amount of crypto regularly, regardless of price. It works over the long run, sure. But it’s not a magic trick. Many impatient investors expect fast results, only to be disappointed when gains don’t arrive quickly.

Like saving money, DCA requires time and discipline. And unfortunately, not everyone has the patience for it. For those seeking quicker results or active trading opportunities, taking profits more frequently and strategically may suit better.

The Bottom Line

In crypto, profits aren’t real until they’re realised. While “diamond hands” might be a flex on social media, it’s profit-taking that builds wealth.

No one gets rich watching green numbers without ever hitting the sell button. Yes, it’s tempting to wait for that next pump—but smart investors plan their exits just as carefully as they plan their entries.

So before the cycle flips again, ask yourself: Are you ready to secure your gains? Or will you be one of those still waiting in the next bear market, wishing you’d taken profits when it mattered?

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