Skip to Content

Let Your Profits Run: Why It Matters for Crypto Investors?

Let Your Profits Run: Why It Matters for Crypto Investors?

Success in cryptocurrency trading and investing doesn’t just come randomly. It is the result of taking risks and executing effective strategies. But there are also factors that go beyond these elements. Some players are lucky, while others are not – that’s the harsh reality. It all comes down to the idea that when efforts and luck come together, the chance of generating more profits is high. 

Although attractive returns are not guaranteed, it always pays to be in an advantageous position. That’s when the trader or investor knows when to continue buying or selling, depending on certain metrics. Of course, this is not as easy as it may sound. 

There are crypto traders who have the tendency to close their winning positions too early. So instead of earning more, they are stuck somewhere a little above their capital and have to start again with new positions. Experts frown upon this strategy because investors might lose substantial amounts of potential profits. 

They would often advise doing the contrary – resisting the urge to quit and looking at objective indicators. This is also called “letting your profits run” in the world of finance.

If you’re thinking of joining this exciting industry, you might as well learn more about this popular strategy. 

image 5 - Let Your Profits Run: Why It Matters for Crypto Investors?

Let Your Profits Run in the Crypto Market 

Let’s face it; crypto trading requires knowledge and skill that must be mastered in order to achieve ambitious financial goals. This is the secret of successful traders – no more, no less. They understand how volatile and unpredictable the market is, yet have found their way around to advance their interests. These clever moves don’t come by chance; traders spend time and money on education and actual exposure to various scenarios. 

When you take the same path, you’ll surely come across the phrase, “let your profits run,” as a piece of investment advice or strategy from mentors or experts in the field. As already emphasised above, this is what you do when you’re on a winning streak. You should avoid selling that position until factual indicators suggest otherwise. This advice is generally offered to crypto investors, but the reality is that only a few take it by heart. 

Many traders tend to exit their positions early with lower gains for fear of losing them eventually. They also have the habit of holding onto large losing positions in the hope of turning them around someday. Both practices can work to their disadvantage, especially when the timing is not right. 

The underlying reason why investors sell their assets early on is either the price has risen dramatically, the current price is not backed by fundamentals or just a mere mistake. Likewise, emotion and human psychology can get in the way of making a rational decision to sell or hold a cryptocurrency. 

When Is the Right Time to Sell a Crypto Asset? 

Your risk tolerance should be considered to answer the question. As a starting point, you should always avoid depositing what you can’t afford to lose as advised by crypto platforms such as Plan your budget carefully and think in advance about how risk-friendly you can afford to be.

image 4 - Let Your Profits Run: Why It Matters for Crypto Investors?

If you prefer a lower risk for some reason, it might be a good strategy to sell a part of your investment and keep the remainder. This seems to be the safest approach, but it would still depend on your strategies. 

Meanwhile, it’s important to understand that some investors don’t follow the advice of experts and choose to cut their losses early because of loss aversion, as identified by behavioural economists. This means that they consider a potential loss more harmful than the equivalent gains. As a result, investors may hold on to losing orders or even double down with the hopes of breaking even again. This strategy implies facing greater risks, and there are cases where investors fear that small gains would simply evaporate. 

Follow Through When the Odds Are Favourable 

image 3 - Let Your Profits Run: Why It Matters for Crypto Investors?

Winning positions are difficult to attain, and some investors might be tempted to leave them too soon out of fear. Depending on the circumstances, this could be a reasonable approach. But generally, the best practice is to sell such positions only when the price has risen to your targets. Also, when the fundamentals do not support the ongoing rally, selling is a good idea. Some experts suggest looking at an objective price level as a reference so that you can avoid selling too early when things are still favourable. 


The crypto industry is flooded by investors and traders who share similar desires and fears. Ultimately, these factors would manifest in various ways as they conduct business with one another. For sure, only those who are fully equipped with knowledge and strategies have a better chance of achieving their financial goals. You might be one of them.