Trading $ETH at its current price of $4,609.32 requires a clear strategy to maximize profits and manage risks. A crucial part of trading is setting a stop loss, which is an automatic order to sell ETH if the price drops to a certain level. This helps protect traders from large losses during sudden market moves. For example, if you buy ETH at $4,609.32, you might place a stop loss at $4,400, limiting your loss to about 4.6%.

Choosing the right stop loss depends on market volatility and your risk tolerance. Tight stop losses minimize losses but can trigger exits from normal price fluctuations, while wider stops allow more room but increase potential loss. Combining stop loss with take profit targets helps balance risk and reward. Overall, using stop loss in ETH trading is essential to protect capital and trade smartly in volatile crypto markets.