The $0.03 to $1.20 Lesson: Why Selling Matters More Than Buying in Crypto

In that period, I bet on a cryptocurrency called ADA, beginning my investment at $0.03, and after 3 months, it rose to $1.20, with the floating profit of my account approaching 40 times.

At that time, the first thing I did every morning was to see how many more zeros my account had, and I even began to consider buying a Porsche-but guess what? I didn’t sell.

Later, ADA fell back to $0.20, and 80% of the profit was wiped out, with the Porsche turning into a second-hand BYD.

This experience made me fully understand that in the crypto world, those who can buy are the apprentices, while those who can sell are the masters.

The following set of take-profit and stop-loss methods are what I have gained through real money experience, especially suitable for ordinary people not wanting to monitor the market.

First, let's talk about take-profit.

My current strategy is "staggered take-profit."

As an example, when a coin rises from $1 to $2, I sell 30% of the principal first so that whatever the rise or fall thereafter, my costs have been recovered.

When it rises to $3, I'll sell another 30%, and set a moving take-profit for the remaining 40% — when price retraces 15% from its peak, it will automatically liquidate.

This approach will allow you to capture the whole uptrend while not wasting efforts.

Now, let's talk about stop-loss.

It is my iron rule that one loss must not exceed 5 percent of the principal.

For instance, if I invest 10,000 dollars, I have to stop-loss once the floating loss reaches 500 dollars.

In specific operations, I like to arrange orders in advance with the so-called "conditional order": immediately setting a stop-loss order at -10% right after buying, just like buckling a seatbelt to trade.

Don't worry about missing an opportunity; opportunities will always come around in crypto, but when your principal is gone, it's really gone.   

Another counterintuitive trick I have discovered recently is to lower the profit target.

Many people always want to sell at the peak, but they usually miss the best opportunity.

Now, as long as I can catch the body of the fish, I am satisfied, leaving the tail for others, and this actually allowed me to achieve a stable profit of 35% this year.

Last but not least, let me say something from the heart: during the past decade, I have seen too many stories of overnight wealth, but more people exhaust their principal in the repeated roller coaster rides.

The ones who can really take profits are always the ones who execute discipline like robots.

I remember once, I stopped-loss, and the coin price doubled again; my friends laughed at me for being cowardly, but I have no regrets, because three months later, that coin went to zero.

The most important thing in the crypto world is to be alive, rather than making quick money. In the past, I was feeling my way in the dark alone; now, the light is in my hands.