Setting a stop-loss in crypto trading is extremely important because it helps protect your capital from unexpected market drops. Since cryptocurrencies are highly volatile and prices can change rapidly, a stop-loss acts as a safety net that automatically sells your position if the price falls to a certain level. This prevents small losses from turning into much bigger ones and helps traders stick to a disciplined risk management strategy. Without a stop-loss, you might end up holding onto losing trades for too long, which can drain your investment capital and affect your long-term success.
