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A Reddit post struck a nerve in the crypto community, sparking heated debate over one of investing’s most painful questions: When do you take profits?
The post’s central thesis is brutally simple: Despite what keyboard warriors claim today, virtually everyone who bought Bitcoin in its early days would have sold long before it reached current prices. And according to the poster—and basic investment principles—they would have been right to do so.
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The Reddit discussion reveals a fundamental tension between investment theory and human psychology. As one commenter noted, “If you 500x an investment yeah you sold lol.”
The math is compelling: If you bought Bitcoin at $1 and watched it climb to $100, you’d have made a 10,000% return. Taking profits at that point wasn’t paper hands—it was prudent risk management. The fact that Bitcoin later reached $60,000+ doesn’t retroactively make selling at $100 a mistake.
“Nothing is guaranteed in investing,” the original poster emphasized. “Anyone who saw their investment multiply by 1000x and didn’t cash out was essentially gambling.”
One of the most insightful comments came from a user who highlighted how net worth influences selling decisions. A college student watching $500 turn into $10,000 faces a completely different calculus than a wealthy investor seeing the same percentage gain on a larger portfolio.
For the student, that $10,000 could mean a reliable car, reduced student debt, or a house down payment. For someone with substantial assets, letting it ride might make more sense as “play money.”
This observation cuts to the heart of position sizing and risk management—concepts that crypto’s “diamond hands” culture often overlooks.
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Not everyone agreed with the “everyone would have sold” narrative. Several commenters claimed to have held through massive gains, with one user reporting 300x returns while vowing to “never sell Bitcoin even at x3000.”
These holders share a common belief: Bitcoin represents a fundamental shift away from traditional currency, making it a “once in a lifetime” investment opportunity. As one put it, “Bitcoin’s price is only expected to rise and fiat is only expected to plummet.”
But even among the diamond hands crowd, practical challenges emerged. One commenter admitted, “I’ve been holding BTC because I don’t know where to sell it,” highlighting the gap between investment philosophy and execution.
The discussion wasn’t without cautionary tales. One user shared how they lost 80% of their crypto holdings when the Voyager exchange collapsed, watching their “6 figure net worth reduced to 4 figure inside a week.”
This story underscores a critical point often lost in crypto success stories: unrealized gains aren’t real until they’re realized. The most perfect diamond hands strategy fails if you can’t access your assets when you need them.
Some users proposed middle-ground strategies. One suggested time-locking Bitcoin to enforce long-term holding while still allowing eventual profit-taking—releasing a set amount each year over a decade, for instance.
This approach acknowledges both the potential for long-term growth and the human need to realize gains. It’s a recognition that perfect market timing is impossible, but systematic profit-taking can work.
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The Reddit thread’s most valuable insight isn’t about crypto specifically—it’s about the nature of investing decisions. As one commenter noted, “Hindsight is a b*tch.”
Every investment decision must be made with incomplete information and uncertain outcomes. The person who sold Bitcoin at $100 made a rational decision based on the information available at the time. The fact that it continued rising doesn’t invalidate that logic.
Start with position sizing: Never invest more than you can afford to lose completely. This makes holding through volatility psychologically easier.
Consider your circumstances: Your age, net worth, and financial obligations should influence your profit-taking strategy. What works for a 25-year-old may not work for a 45-year-old with a mortgage and kids.
Plan your exits: Before making any investment, decide at what point you’ll take profits. Having a plan removes emotion from the decision.
Don’t let perfect be the enemy of good: Taking some profits after significant gains isn’t “paper hands”—it’s risk management.
Remember the risks: Unrealized gains can disappear quickly. Exchange failures, regulatory changes, and market crashes are all real possibilities.
The Reddit discussion reveals an uncomfortable truth: Most successful long-term crypto holders succeeded despite their strategy, not because of it. The difference between conviction and stubbornness is often just luck.
For retail investors, the lesson isn’t to abandon long-term thinking—it’s to balance conviction with prudence. Take some profits along the way. You might miss some upside, but you’ll sleep better at night.
And if you’re beating yourself up for selling an investment “too early,” remember: You made a rational decision with the information you had. That’s not failure—that’s investing.
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This article Reddit’s Brutal Truth About Crypto Profits: Why That Guy Who Sold Bitcoin at $100 Wasn’t Actually Stupid originally appeared on Benzinga.com
