Crypto trading and investing has many challenges. However some that stand out are;
1. Risk in trading or investing
2. Greed and Fear
3. Profit taking.
I will address the third point in this trade. Making profit is one thing, taking profit is far important. What make some people not to make profit is fear and greed.
Here is a strategy i used in taking profit;
1. Determine the market cap you want the coin to rise to.
2. DCA out at every milestone of the project.
For example, say you bought SOL at $5. You take 50% off after 5x, and take 10% as it goes up.
How do you take profit? Are there other strategies for profit taking?
The idea you've listed on profit taking, is virtually what every investor would do, though some will still hold on till the profit reaches 100% based on what they've predicted the market cap will rise to, However some person's will argue that, 50-60% of your profit should be enough for you to take, as exceeding that will be greed. Don't forget that, you can successfully hold your coin for long period for it to yield good profit, and Bitcoin is the only major coin that has that capacity.