I noticed that many beginners in crypto make the same mistake — they just buy a coin and sit, waiting for it to grow. The result? They get stuck in a trade for a week, a month, sometimes even longer. And all because they don’t think about the exit in advance.

Profit is essentially your final earning goal. When you enter a trade, you should already understand at what price you will exit. Not “maybe I will exit,” but a precisely calculated target price. This is not intuition; it’s mathematics.

Why is this so important? First, you have a clear plan — you know your exit point. Second, you can make frequent small profits instead of waiting for one big jump. Third, you either increase the number of coins or multiply your dollars — depending on the strategy you choose.

Calculating profit is simple. The formula: Target Price = Entry Price × (1 + Profit in Percentage / 100)

Let’s look at examples. Suppose you bought a coin for 1.000 USDT and want to earn 0.5%. The target price will be 1.000 × 1.005 = 1.005 USDT. You set a sell order at exactly this price and wait. Or another case: bought at 0.328 and aiming for 0.6% profit. Calculation: 0.328 × 1.006 = 0.330 USDT. That’s all there is to it.

What profit size should you choose? If you’re afraid of getting stuck in a coin — set 0.3-0.6%. If the coin is volatile and you’re ready for fluctuations — you can go for 0.7-1.0%. Above 1.5%? That’s already a high risk of not reaching the target, especially if the market isn’t in the best shape.

An important point many forget — fees. On most exchanges, it’s about 0.1% on entry and 0.1% on exit, totaling 0.2%. That means your profit should be at least 0.2%, or you won’t even break even. If you set it at 0.5%, your net profit after fees will be about 0.3%. It’s important to understand this.

What happens when profit is calculated incorrectly? Too small — the fees will eat everything. Too large — the market may not reach that level, and you’ll end up in a loss. And if you don’t account for fees at all? It’s like going to an unfamiliar city without a navigator — you’ll search for the way for a long time and probably fail.

Practical advice: it’s better to make five trades with 0.5% profit each than one with 5% that you won’t reach. Trading is not about luck; it’s about system and calculations. Always calculate profit before entering a position. Don’t guess, don’t rely on intuition. Formula, calculation, exit — that’s your algorithm.

Currently, BTC is trading around 77.41K (+1.81%), ETH at 2.29K (+1.19%), BNB holding at 618.60 (+0.47%). A good moment to apply this knowledge in practice and start trading consciously.