Let me tell you a true story. Back then, I bought ADA at $0.03, and three months later, I watched it skyrocket to $1.20, turning my account balance up 40 times.

During that time, the first thing I did every morning was check my account balance, calculating whether I should cash out for a Porsche. But I didn’t take action, always thinking it could go higher.

And then? I watched it drop back to $0.20, 80% of my unrealized gains evaporated, and the Porsche became just a daydream.

That lesson made me truly understand— in the crypto market, knowing when to buy is just the beginning; knowing when to sell is the real skill. Here are a few tips I learned with real money, especially suitable for those who don’t want to stare at the charts all day.

**About Taking Profits**: I now use a “laddered exit” strategy. For example, if a coin rises from $1 to $2, I sell 30% to secure my principal; when it hits $3, I sell another 30%; for the remaining 40%, I set a trailing stop— if it falls 15% from the peak, I sell all remaining holdings. This way, I can lock in profits without missing out on the main rally.

**About Stop Losses**: I have a strict rule for myself: no single loss can exceed 5% of my principal. For example, if I invest $10,000, I must cut my losses if I’m down $500— no exceptions.

In practice, I like to use “conditional orders”— set the trigger prices in advance so they execute automatically. The biggest benefit is it avoids human weakness: you won’t hesitate because you’re emotionally attached, and you won’t let short-term volatility cloud your judgment.

The market is always full of opportunities, but if you lose your principal, it’s really over. Protecting your principal is more important than catching every rally.