Taking profit is not about getting money out of crypto, it is about being able to put more in at a later time.

I've only really been in crypto since '17, but since then I have seen the biggest price swings imaginable. From btc 3k to 20k and back again to 5k in no time.

Every time I have been thinking: "ahh what if I would have just bought at 4k and sold at 20k, I would have had so much money".

Nevertheless, I have been sorta brainwashed that I can never sell any crypto because in the long run it will go up. It may be right, but just as you should dca in crypto you should Percentage Cost Average (PCA) out.

I do realise that there were a lot of people advocating for this before me so I will just explain what I mean here. If you have bought any crypto for let's say 100, then we are suddenly in a bull market and you wake if the next day at it is worth 130. There are 3 actions you can take: 1) Do nothing, you trust that it will be worth more in a few years so you don't want to gamble anything, 2) sell everything, you thing that the price will drop and you want to profit maximally from that, and 3) sell a percentage of your original investment so you have less money on the line.

Let's focus on point 3 here. If your crypto rose from 100 to 130, and you had 100 invested, it means a 30% increase, which is actually insane in the normal world, but, luckily not in crypto. If you would just take the 30% out (or 20 or any number you feel comfortable with) you have just got 39 instead of your original 30. Your investment is now worth 91. If you would do this only 2 times more, it means that you have recovered your original investment and more. You are now playing with free money! The second upside is that IF crypto drops again to below your original buy value, and there is a high chance that it will, that you can buy in at a much lower price with your profits.

Tldr: taking percentage profits can lead to you having a bigger stack to buy crypto at bear market prices.