Managing Emotions & Profits in the Crypto Bull Run

A smarter approach to profit-taking

Author

DeFi Dad
February 25, 2025

I often regret not sharing more of my most candid thoughts as an investor so today, I wrote this long form post on X about lessons I’ve learned from past cycles on managing my emotions of greed, FOMO, and uncertainty while strategically taking profits. Instead of giving you a forecast of whether I think the market’s going up or down, this ought to equip with you with a mindset for making better decisions regardless of where the price takes us.

For more detail, the original tweet might suit you but if you enjoy a shorter version with less examples of my own profit-taking, check out the article below. I hope you find either helpful!

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Managing Emotions & Profits in the Crypto Bull Run

A big mistake I made last cycle was setting rigid expectations for price targets before accepting that "the bull run is complete."

I remember BTC at $69k in 2021, thinking, "That’s only 3X from the previous high. Given past cycles, even with reduced volatility, we could still see a 5-10X move, so just 5X would put us at $100k BTC."

As simple as that logic was, it worked for me—combined with many other factors. But it turned into a huge mistake. I spent early 2022 justifying why we hadn’t topped, mainly because I couldn’t accept that BTC never hit my imaginary line in the sand: $100k. As fate would have it, it took another cycle to reach that milestone.

The result? I roundtripped way too much in profits. I think I sold only 10-15% of my portfolio into stablecoins in 2021/2022, much of which went straight to taxes.

A New Approach This Cycle

This cycle, I’ve adjusted my approach. While I remain a long-term crypto bull, believing it could grow into a $100T sector in the next decade, I’ve committed to more methodical profit-taking. My goal is to balance my emotions while securing gains along the way.

GREED

  • I maintain a long bias but take profits to enjoy life, invest off-chain (a home, vacations), pay taxes, and reinvest into builders.

  • I know I’m susceptible to chasing trends (e.g., memecoins), but I stick to my strengths: DeFi protocols and platform tokens.

  • I allow myself small, calculated risks in high-APY farming or speculative plays but limit exposure (0.25%-0.5% of my portfolio).

FOMO

  • FOMO leads to poor decision-making, often neglecting profits in hopes of even higher returns.

  • Many have fallen into the trap of piling into memecoins or AI agent tokens, driven by dreams of a 1000X return.

  • I’ve learned to reassess constantly and take profits strategically. Since BTC hit $100k in December, I’ve shifted profits into stablecoins to cover taxes and reduce risk.

UNCERTAINTY

  • Crypto is a game of survival, and uncertainty can lead to poor decisions.

  • Have we topped? Possibly. Will we hit new highs? Also possible. Could we range for six months? Of course.

  • The worst decisions often come from reacting emotionally to uncertainty—e.g., going 100% stablecoins, feeling FOMO on a pump, leveraging up, and getting liquidated before a real breakout.

  • Selling 25% of a portfolio is a major win. Selling 50%+ is even better. I aim to strike a balance between conviction and caution.

FEAR

  • Fear is the opposite of greed—the fear of losses, being wrong, or missing out.

  • I don’t use much leverage, so my fear isn’t liquidation. Instead, it’s misjudging founders, missing a 100X, or underestimating competition.

  • I mitigate fear by being aware of it, managing risk, and keeping emotions in check.

Where I Stand This Cycle

  • Sold 20% of my total portfolio into stablecoins

  • Sold 25% of my long-term BTC holdings

  • Sold 50% of my SOL position (but plan to buy back in the next bear market)

  • Sold only 10% of my ETH, maintaining conviction in its long-term value

  • I did sell other tokens along the way, but prior to the U.S. election I was selling those profits into ETH, second most into BTC, and thirdly into SOL.

This cycle, my focus is managing how crypto impacts my emotions and decision-making. No matter where prices go this year, I remain committed to crypto and DeFi, ensuring I stay positioned for long-term growth while securing meaningful gains along the way.

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