How To Succeed in Crypto: The Art of Taking Profits

August 2025 Newsletter

Matthew 25:16-17 – He who had received the five talents went at once and traded with them, and he made five talents more. So also he who had the two talents made two talents more.
 

The Greek word for “traded” in this passage is ergazomai , which, according to Strong’s Concordance, means to toil and, by implication, to be actively engaged. At the Crypto Exodus, our goal is to guide you through the crypto markets to assist you to make informed, engaged decisions by yourself. By staying engaged, you can align your investments with your goals and navigate the market’s volatility with confidence.
 

Two Paths: Buy-and-Hold vs. Trading

Proverbs 22:29 – Do you see a man skillful in his work? He will stand before kings; he will not stand before obscure men.
 

In crypto, you can choose between being a buy-and-holder or a trader. While both approaches have merits, I believe a trader’s mindset—specifically as a position trader—is the best path for most crypto investors. Position trading involves holding assets for weeks, months, or even years, but with a keen eye on market cycles to capitalize on price movements. Unlike a buy-and-holder, a trader takes profits to reduce risk and locking in gains to potentially deploy into new opportunities.
 

Crypto is known for its parabolic moves, sometimes surging 1000% or more in short periods, followed by steep declines during “crypto winters.” These winters occur when investors, burned by losses, hesitate to re-enter the market so prices stay suppressed. Unlike day trading, which demands constant monitoring, position trading allows you to ride these waves strategically, taking profits to reduce risk and prepare for the next cycle. We understand that getting a handle on the basics of trading crypto takes time, which is why Crypto Exodus aims to minimize your effort so you can focus on your God-given calling. When appropriate, I’ll send out alerts with buy or sell recommendations to simplify the process. Ultimately, it’s your decision how to act on this information. My belief is that position trading maximizes profits while minimizing the time needed to manage your crypto portfolio.
 

Why Engagement Matters

The stock market’s buy-and-hold strategy doesn’t fully translate to crypto markets due to their distinct behaviors. While the S&P 500 generally trends upward with occasional dips, Bitcoin (BTC) experiences parabolic surges followed by steep crashes.

Bitcoin vs. S&P 500: A Comparative Analysis

• Bitcoin (BTC) : Historical data shows BTC enduring crashes of over 80% from its highs, with recovery periods lasting at least a year before surpassing previous peaks.

• S&P 500 : In contrast, the S&P 500 has experienced two significant crashes dropping 50%, but these recoveries are typically quicker, with shorter periods before reaching new highs.

BTC’s cycles of euphoria and sharp declines create both opportunity and risk. A position trader’s mindset, focusing on capitalizing on these cycles, is better suited than a passive buy-and-hold approach. While holding BTC long-term has proven profitable—reaching $120K today—many early investors sold during crashes, unable to endure watching unrealized gains vanish. Fear of loss or disbelief in BTC’s long-term potential often led to premature exits.

The Case for Taking Profits

 
Taking profits means selling a portion of your position to recover your initial investment and lock in gains.
 

For example:
If you’re up 500%, sell 40% to recoup your investment plus a profit.
If you’re up 100%, sell 50% to cover your initial stake.
 

This strategy is critical for five reasons:

 
Reduces Risk: By taking your initial investment off the table, you’re playing with “house money.” You can reinvest profits into dips or new opportunities while minimizing your total investment exposure. This approach aligns with crypto’s cyclical nature, where dips often precede the next rally.
 

Builds a Positive Mindset: Locking in profits creates a sense of victory, even if you sell early. Imagine selling half your position in a project like Orchid (OXT) after a 200% gain on day three of a 500% run. Your investment is paid for, and the remaining position is risk-free. Even if the project fails, you’ve secured a win. A string of wins boosts confidence and makes it easier to get into your next trade.
 

Example: Before recommending ZBCN as an official pick, I bought some at $0.0008. When it surged 1000% within weeks, I sold part of my position at when it was at 300% ($0.0024) and 830% ($0.0066) gains. By selling the majority of my position, I locked in profits and used some of the profits to rebuy at the recent low of $0.0024. My conviction in the project grew when it was falling so I took some of my 830% gains and rebought in the dip to increase my position with no added risk.
 

This strategy produced a win, reduced risk, gave me profits, and kept me with a long-term position in the market for free!
 

Mitigates Emotional Pain: Crypto’s volatility can be an emotional rollercoaster. Investors who fail to take profits often regret it when prices crash. This pain can be worse than experiencing an unrealized loss right away because there is deep seated regret about not capturing the gain when it presented itself. I’ve heard stories of people who refuse to touch crypto again after losing 50% or more in a downturn.  Taking consistent profits removes the sting of potential losses, making it easier to stay engaged and avoid the self-fulfilling prophecy of anticipating failure.
 

Example: I know someone who watched his crypto pick FTM skyrocket 29,761% from $0.011 to $3.48 in 2021, only to crash over 95% from the high, leaving him with a 1700% unrealized gain. He didn’t sell because he was waiting for mass adoption and it’s only now starting to happen. Since then, the price hasn’t made it half way to it’s all-time high and it currently sitting in it’s long-term support zone of 4 years. When prices fall hard like this, it can take some years to get to the same level or higher because people remember that pain of selling at a loss and they don’t want to buy it. Others are watching their holdings at a loss so when the price rises, they sell it at break even or at a less of a loss to get back their money. He wishes that he would have taken some profits and he gave me permission to share this story to urge others to avoid the same mistake.
 

Aligns with Crypto’s Unique Cycles: Unlike stocks, crypto often surges dramatically every four years before crashing. Taking profits during the euphoria ensures you capitalize on gains before the inevitable crash comes. Each BTC bull run has had a dramatic rise followed by an 80+% crash. This means a substantial number of traders bought at the wrong time. Imagine how hard it would be to hold your losing asset for 4 years until the next bull run! At current prices, if we were to see another 80+% crash, that would take it down to at least $24,000!
 

Produces staying power: It’s a lot easier to stay in position if profits are taken along the way. If your sizeable investment is taken out and you are trading with “free” money, you can afford to hold on and be a buy and holder with the rest if you wanted to.

Strategic Considerations

Coins like XRP and XLM may suit a buy-and-hold approach due to their established use cases. I believe God has revealed they will be worth a substantial amount in the future so I won’t be selling more than 20% after a significant surge in prices for the same reasons listed above.
 

I think high-volatility coins like SHIB and LUNC require a trader’s mindset. These can spike rapidly, so setting sell orders in advance is crucial to capture gains before a sudden drop.
 

ZBCN and OXT are small market cap cryptos with no guaranteed future but profits can be guaranteed if the market presents an opportunity to capture them.
 

Final Thoughts

 
As we enter a season of opportunity and risk, adopting a position trader’s mindset can help navigate crypto’s wild swings. My encouragement is to take profits to reduce risk, build confidence, and stay engaged with the Crypto Exodus. I’ll send out alerts when I identify strong buy or sell points, but the decision to act as a position trader or buy-and-holder is yours. By taking profits along the way, I think you’ll be better equipped to buy during the crypto winters and thrive in the next bull run.
 

You’ll never go broke taking profits, even if it is premature.
 

Current Portfolio & Purchase Prices
XRP: $0.60

XLM: $0.2867

SHIB: $0.0000143

LUNC: $0.0000687

ZNOG: $0.20

OXT: $0.055
ZBCN: 0.0027
 

This newsletter is for educational purposes only and does not constitute financial advice. Always conduct your own due diligence before investing in cryptocurrency.