Taking profits means selling a portion of your holdings after a price increase to secure gains while still keeping some skin in the game. It’s a strategy built on balance, you lock in returns without completely exiting the position. Let’s say you bought a token at $100, and it pumps to $300. Instead of selling everything, you sell one-third or half, reclaim your initial investment, and leave the rest to ride. This way, you reduce risk, realize gains, and stay exposed to potential future upside.

On the other hand, selling off outright is a full exit. You decide to sell 100% of your holdings, often based on a target price, fear of a coming downturn, or simply to shift your capital elsewhere. It’s a more final move, you’re no longer participating in the asset’s growth or loss. Sometimes this is a wise choice, especially if the fundamentals of the project have changed or the market has reached irrational levels. But it also comes with the risk of missing out if the price keeps climbing.

Taking profits is a disciplined strategy. It allows you to stay emotionally grounded, avoid greed, and build capital while still holding onto your investment. Selling off, in contrast, can be defensive or decisive it removes uncertainty but also removes opportunity.

The key difference lies in mindset. Taking profits is about managing risk and playing the long game. Selling off completely is about exiting either with conviction or caution. Neither is right or wrong on its own, it all depends on your goal, risk tolerance, and view of the market.