Taking small, consistent profits in cryptocurrency often involves using technical analysis to identify ideal selling points. One simple and effective strategy is to use the Relative Strength Index (RSI), a momentum indicator that helps identify overbought or oversold conditions.

Here's how to explain this strategy with a chart:

Understanding the RSI Chart: The RSI is displayed as a separate line below the main price chart, fluctuating between 0 and 100. The key levels to watch are 70 and 30.

Above 70: The asset is considered "overbought," meaning it may be due for a price correction. This is often an ideal point to take profits.

Below 30: The asset is considered "oversold," suggesting it may be undervalued and a good buying opportunity.

The Strategy: The "small profit" approach is to sell a portion of your holdings whenever the RSI crosses above the 70 line.

Visualizing it with a chart:

Imagine a cryptocurrency price chart with an RSI indicator below it.

The price of the crypto is on an upward trend, and the RSI line is also rising.

As the price continues to increase, the RSI line eventually crosses above the 70 level.

According to this strategy, this is your signal to sell a small portion of your holdings.

After you sell, the price may continue to rise slightly or begin to correct. By selling a portion, you've secured a profit without losing out on potential future gains.

This method helps you avoid the emotion of holding on for a "bigger" payday and ensures you're consistently taking money off the table. It's a disciplined approach that aligns with the goal of not being greedy and protecting your investment.