Listen, many beginners in crypto trading make one basic mistake — they just buy a coin and wait for it to go up. Then they sit in losses for months because they don’t know when to exit. That’s when you need to understand what profit is.

Profit isn’t complicated. Essentially, it’s your target profit percentage that you set in advance before each trade. You decide: I will buy this coin and sell when I’ve earned exactly that percentage. That’s it. No intuition, only calculations.

Why is this important? Because profit gives you several advantages. First, you know exactly when to close the position — no guessing needed. Second, instead of one big trade, you make many small, but frequent profits. Third, you either increase your coin holdings or grow your dollars — it all depends on your strategy.

Now, about the calculations. The formula is simple: target price = entry price multiplied by (1 + (profit percentage/100)). Sounds more complicated than it really is.

Let’s take a real example. Say you bought a coin at $1 and want a 0.5% profit. Then: 1.000 × 1.005 = 1.005. That’s all — set a sell order at $1.005 and wait.

Another example: bought at $0.328, want a 0.6% profit. Calculate: 0.328 × 1.006 = 0.330. Sell at $0.330.

What profit should you choose? Here’s some logic. If you don’t want to hold a position for too long — aim for 0.3–0.6%. Is the coin volatile? Then you can go for 0.7–1.0%. Above 1.5% is already high risk, especially if the market isn’t trending. You simply won’t see that kind of growth and will sit in losses.

What happens if your profit target is wrong? If it’s too small — it might not cover the fees. If it’s too big — you might never reach the target price. Not calculating profit at all is like traveling to an unfamiliar city without a navigator.

One important detail: fees are usually about 0.1% on entry and 0.1% on exit, totaling 0.2%. So, your profit should be at least higher than 0.2% to break even after fees. If you set a 0.5% target, your net profit will be around 0.3% after all charges.

The simple conclusion: always, and I mean always, calculate your profit before entering a trade. Not by guesswork, but with a formula. Better to make five small trades at 0.5% each than one ambitious 5% trade you’ll never reach. Trading is pure math, not intuition or luck.