This crash has taught me a valuable lesson about taking profits

I bought into crypto at the end of May 2021, around this time a year ago and DCAed every week until around the beginning of August before deciding to just hold and not DCA during the bullrun last year (best decision I made in hindsight). I have the majority of my portfolio in BTC and ETH with smaller positions in some alts, so around the end of October to the beginning of November my portfolio was up around 70%. At that time pretty much everything in my portfolio was up. Some assests were up 300%+, but I was part of the DCA and hold crowd, so I did just that.

I held all of my profits and didn’t take any profits at all. Everyone was saying “$100k BTC by the end of the year!” and I fell for it. I thought the bullrun would continue, and decided to just keep holding. Then the bear market hit…. Everything was down more and more, but I was still in profit due to having an average BTC buyin price of $34,000 and the performance of alts like SOL, KCS and LUNA (😭) that I bought in at a good price for and were still up a lot from my buyin price. Then this crash happened. My 70% in profit portfolio just seven months ago is now 20% in the red. All those unrealized profits have been wiped out. It’s all play money that I could afford to lose so it doesn’t matter too much and won’t affect my life at all, but it taught me a valuable lesson to take profits when you get them. Holding is fine and will probably still work out, but I could have had a lot more money to invest now if I had taken those profits.

**TL;DR:** Don’t sit on profits too long. Take profits when you can, because they could disappear at any moment.

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42 thoughts on “This crash has taught me a valuable lesson about taking profits”

  1. You just learned the same lesson most learned during 2018 market collapse. You need that experience to help you in the future but you would be surprise how quickly that lesson goes out the window when profits start coming in again. Its a very hard lesson to learn and even if you think you learned it today, once those sweat profits start coming in, it will be as hard to sell it again as it was this time around so there is plenty of people that held through both crashes and never took any profits.

    Greed is a powerful motivator and you always end up holding a little bit longer hoping for a little bit higher price before its too late and you back in the red, since there is no way to call the top till it passes by and you have to be ok to take lower profits then you had a week or month before. Easier said then done.

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  2. This hits home as a LUNA holder. I watched my investment double and now its not enough to buy a pack of gum. Next time ill bite the bullet on the taxes, what good is a hold when it binds you into never being able to profit beyond a certain point

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  3. Market forces you to take profit, whether you like it or not, in the end it brutally teaches you why one should take profit

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  4. For real. I stared some pretty serious gains in the face last year and didn’t sell because I didn’t want additional tax obligations. I won’t be making that mistake again.

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  5. When a coin hits its ATH, that’s a great time to sell if you’re in crypto for the long term. The chart is never a straight line up. In other words, unless you believe that the coin is never ever going to fall below this price that’s now it’s ATH, then take profits and wait for the price to go down and then buy in again. You’ll end up increasing your amount of coins (equity), and your average cost per coin will be lower on top of that.

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  6. I don’t think anyone who was in crypto during the continuation of the bull run would have waited for btc to hit 50K again just to sell. Many of us were anticipating Bitcoin going much higher and rightly so. External conditions are just sometimes unfavourable.

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  7. This x100 times. That’s me. But I think it is the nature of reddit and the community. The hivemind gives and the hivemind takes.

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  8. Same thing happened to me in 2017. This Bull run I decided I was going to take profits and not make the same mistake again by letting my paper profits turn to paper losses. Ended up selling ethereum all the way up starting at $1k. You can imagine my face as eth screamed up past $4k and I had nothing left to sell lol. Grass is always greener.

    Lets just hope this 3rd bowl of pourage is juuuuust right come 2024.

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  9. I’ve been in since 2017 and have yet to successfully take profits. It always seems to crash just before it gets to the level where I want to start taking some off the table. FML lol.

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  10. >”$100k BTC by the end of the year!”

    We all did. Based on the previous patterns, that was ‘realistic’ but seems like BTC is changing its patterns this year.

    We are seeing lower ceilings, but higher floors. So, we shall see where it goes from here.

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  11. I was planning to take profits too but couldn’t bring myself to do it under the fabled $100k threshold. Guess I’ll be holding until 2025 now.

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  12. IMO, the issue with taking profit is where do you actually put it.

    Do you put it in stablecoin (we saw what just happened with UST) or do we move it back to fiat?

    No strategy is a good strategy in a bear market. It’s part of the game.

    Crypto will rise again.

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  13. This crash taught that projects ain’t shit. I tried not to marry my coins…but staking it is marrying your coins after all.

    You either live long enough to become a BTC Maxi or die a shitcoiner.

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  14. I had this point in February where I was like, “fUcK iT dUdE, iM gOnNa LiVe OfF mY dEfI mOnEy”. Thank fuck I didn’t quit my job like I planned, but if I walked away then I’d be sitting much prettier than I am now. The lesson I have learned is to be conscious of when you have reached peak delusion and sell your shit then. Hindsight is always 20/20, but all I can hope to do is to do better next time.

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  15. It is always too late to take profit since by the time you realized it is a bear market, it might already near the end of it

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  16. I took my initial at 300% gain. I will never be at loss. Even if my portfolio goes to 100k and then to 10k. I’m always at profit.

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  17. I agree. I’m in a much better place than many, but the most disheartening thing about this whole experiences is that I had plenty of opportunities to completely hedge against any downside risk when I was up and decided not to.

    I could offer a dozen excuses and reasons why I didn’t take some money off the table, but the core reason is quite simple: greed.

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  18. I am literally in the same boat, except I chose other alts, at one point my portfolio was up 110% and now its RED AF. Next time i’ll be taking profits for sure. We live and we learn keep it up!

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  19. I learned the same lesson in 2018. I took profit on this run when my hairdresser told me about crypto. Guess what, her timing was top notch.

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  20. Honestly, unless you’re planning on putting those profits into something else immediately or you know that you can control yourself and NOT buy that sweet new car/guitar/hooker/etc. then leaving your investment alone in a bear market is the way to go.

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  21. I had $ 25.000, I’m at $ 10.000 now. Not because of Luna, because of the whole thing going down. I SHOULD have taken profits, but 25.000 isn’t gonna change my life. I WANTED it to be more, I got greedy and I STILL want it to be more.

    I’ll definitely keep my BTC and ETH, which makes up 75 % of my shit, the rest I’ll maybe turn into BTC and/or ETH, but I need LIVECHANGING money.

    That would be 50k or something. Having said that, if I had had 50k and would be now back to 20 k or so, THAT would hurt me a lot. So thank god I never had that much money to begin with.

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  22. DCA out is just as important as DCA in… Set goals for profit and stick to it. Don’t let greed get in the way.

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  23. Look. I know nobody here wants to hear this, but cryptocurrency is a prisoner’s dilemma. The first to exit wins, but if all parties can hold on for a little longer, the jackpot gets bigger and bigger as more people join in on the game.

    The thing is, if you’re taking a profit, it means someone else is taking a loss. The hope should be that someone else is a billionaire who can afford to lose, but the bitter truth is that the losers are almost always going to be retail investors.

    (In fact, the winners generally are the people who set the rules of the game to begin with, when they rug-pull. They are using the optimal strategy for the prisoner’s dilemma, and so rational actors will continue rug-pulling, especially since the punishment for doing so tends to be a fat lot of nothing.)

    Your advice to not sit on profits too long is good. The problem is, *everyone else is thinking the same thing*. Someone is going to be the lucky winner who jumps at the all time high. Another group are going to relatively lucky as they take in more than they “invested”. (Really the word “ante” makes more sense in this context than “invest”.)

    But there absolutely will be more dollars lost than dollar won, because transactions require an infrastructure, and that infrastructure takes its bite. There will be *more losers* than winners, every time, every coin.

    This includes BTC and ETH. Maybe they won’t crash to zero in my lifetime or yours, but someone somewhere sometime is going to be paying that piper.

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  24. Or you can keep accumulating and really set yourself up for the next bull run. I have tax implications here that disappear after one year of holding, so it’s pretty much forced me to hold.

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  25. Yeah, I read about a guy yesterday whose portfolio rose to 7-figures before dwindling to 4-figures, it was painful to read.

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  26. I reckon you’re on to something. If you’d sold the ATH, and then bought back lower, it would have been better. Should be easy enough to do going forward now that the lesson is learned.

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