Many beginners in crypto ask: what exactly are profits? Let me explain simply. Profits are your target gain in percentage, at which you close the position. No need to guess, no need to wait for a miracle — just plan in advance at what price to exit.

When I first started trading, I made a classic mistake — bought a coin and just waited for it to grow. As a result, I was stuck in the trade for weeks. Then I realized: profits are not just a number, they are your risk and emotion management system.

What does correct profit calculation give? First, a clear understanding of when to close. Second, the ability to make frequent small profits instead of one big one that you might never see. Third, to accumulate either coins or dollars — depending on your strategy.

The formula is simple: Target price = Entry price × (1 + Profit in percentage / 100)

Practice. Bought a coin at 1.000 USDT, want 0.5% profit. I calculate: 1.000 × 1.005 = 1.005 USDT. I set a sell order at this level and wait.

Another example. Entered at 0.328, aiming for 0.6% profit. Target price = 0.328 × 1.006 = 0.330 USDT. It’s that simple.

What size should you choose? If you don’t want to be stuck in a coin — take 0.3–0.6%. If the coin is volatile — you can go for 0.7–1.0%. Above 1.5% — it’s risky to be left with a loss if the market doesn’t grow.

What should you remember about fees? The exchange charges about 0.1% on entry and 0.1% on exit, totaling 0.2%. That means your profit must be at least above 0.2% to break even. If you set 0.5%, your net profit will be about 0.3% after all fees.

A common mistake beginners make — too small a profit doesn’t cover the fee, and too large — you simply won’t wait for it. The third option is even worse — not calculating at all, like going to an unfamiliar city without a navigator.

My advice: always calculate before the trade. Don’t guess — use the formula. Better five trades at 0.5% than one at 5% that you won’t wait for. Trading is math, not intuition or luck.