Protecting your money in the cryptocurrency market requires a lot of awareness and psychological discipline, as the market is highly volatile and greed can lead to significant losses. Here are practical steps to protect your money and determine the right time to take profits and stop being greedy:
✅ First: How do you protect your money in the cryptocurrency market?
1. Do not invest more than you can afford to lose
Invest only a portion of your money that does not affect your life or basic needs.
2. Smartly diversify your portfolio
For example:
60% in strong and established projects (like Bitcoin and Ethereum)
30% in medium projects
10% in emerging currencies or speculation
3. Use cold wallets
If you hold large amounts of currencies, do not leave them on exchanges. Use a cold wallet (like Ledger or Trezor) to reduce the risk of hacking or bankruptcy.
4. Use the stop-loss feature
Set a stop-loss on every trade. Don't enter the trade without determining an exit point.
5. Avoid emotional trading
Don't buy just because "the market is up" and don't sell just because you're scared. Follow a clear plan and strategy.
6. Follow the news but don’t follow the panic
News affects the market, but don’t act based on fear or quick greed.
💰 Secondly: When do you take profits and stop being greedy?
1. Set your goal before you buy
For example: "I will sell when the currency reaches 2x or 3x of my capital."
2. Use a gradual profit-taking strategy (Take Profit)
For example:
When the currency reaches +50% sell 25%
At +100% sell another 25%
And so on…
This method allows you to make profits without regretting if the price continues to rise.
3. Stop following the price moment by moment
If you reach your profit target, exit or withdraw your capital at least, and leave the rest if you want to take risks.
4. Calculate real profits, not just paper profits
The currency whose price is rising and you haven't sold, you haven't actually profited from it yet. You need to sell to secure the profit.
5. Greed never wins in the long term
People who are always greedy end up losing at the end of the cycle. If the market has provided you with a satisfactory profit, take it and exit safely.
⚖️ Golden rule:
> "A small realized profit is better than a large lost profit"