Having been in the crypto world for many years, there is a memory that is always etched in my mind: the 2020 altcoin frenzy, which caused countless people to experience rollercoaster-like psychological torment.

That year, I caught the upward wave of ADA, entering in batches at $0.03, and it soared to $1.2 within three months. The account balance increased nearly 40 times. That feeling was almost indescribable—every day I would check the market, and I was already planning how to improve my life.

Unfortunately, greed kills. Watching assets sparkle in the account, there was always a voice saying wait a little longer, see what happens. As a result, ADA suddenly plummeted off a cliff, dropping straight to $0.2. Over 80% of the unrealized gains vanished in an instant. That feeling… I gave up.

This lesson made me realize one thing: in the crypto market, buying the right coin is just passing; knowing when to sell is the real skill.

This methodology is summarized through painful experience and is especially suitable for retail investors who don’t have time to monitor the market or are easily driven by emotions:

**Take profits with rhythm, don’t try to eat everything at once**

Using ADA’s rally as an example. When the price rose from $1 to $2, the first thing was to sell 30% of the position. This step is crucial—secure the principal, so you can stay calm regardless of future ups and downs.

If the trend continues and hits $3, sell another 30%. By then, you’ve already secured a good profit, and the remaining holdings can be held more calmly.

What about the remaining 40%? Use a trailing stop. Simply put: if the price drops 15% from the peak, sell everything. This way, you won’t miss the main rally entirely, but you also prevent giving back all your profits.

**Stop-loss is the moat of investing**

Many people’s problems stem from here—either no stop-loss concept or setting it too loosely.

The rule is simple: for any trade, the loss should not exceed 5% of the total principal. When buying, immediately set a -10% stop-loss order. It’s like fastening a seatbelt for your trades. Don’t fear missing out on a rally by selling too early; market volatility will always be there. But if your principal is wiped out, there’s no ticket to re-enter the market.

**The market is never short of volatility, but your patience is precious**

Over the years, I’ve seen too many stories of overnight riches, and also countless cases where traders lost everything in the ups and downs of the K-line. The ones who finally make money and exit the market are never those who don’t strictly follow their discipline. Greed and luck are the most expensive emotions in crypto.

The core of this profit-taking and stop-loss system is to detach emotions from investment decisions, replacing heartbeat-driven reactions with cold, hard rules. Sometimes, missing out on a big rally is much more comfortable than carrying the burden of losses.