Ben Simpson explains a practical profit-taking strategy for cryptocurrency bull markets. He warns against trying to pick the absolute market top, recounts that he made large gains previously by selling before the top, and recommends "dollar cost averaging out"—gradually taking larger portions of a position and converting to cash as prices rise to lock in gains and reduce downside risk.
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Here's how you actually take profits in crypto. Most people get this wrong. I got it wrong when I first started nine years ago, and I implemented this strategy that made me so much money in the last cycle during the metaverse, when I took out 20 and 30x returns before the top of the cycle. Now, what happens in bull markets is you get these huge price movements, and then we have a huge crash in the bear market. Now, everyone tries to pick the top. This is where people think that they should sell, all right? But what actually happens is that the cycle doesn't hit this point because you keep moving your mindset higher and your goals higher, and then your portfolio goes down. All right? So your portfolio might be worth a hundred thousand here, all right, or a million, and this is where you want to sell, all right? But what actually happens is that you move those price targets higher and then you. On the way down. What I do instead is take chips off the table as we go up, all right? So as we're heading up, I utilize dollar cost averaging out, and I take bigger percentages of my portfolio to stack cash on the way up. What this means is, yes, you're not going to make as much as if you were to pick the top, but you're stacking profits and you're taking the risk off the table so you don't fall down the other side.
