What is Stop Loss on Binance and how to use it to protect your investments?
Stop Loss is an essential tool for cryptocurrency investors who want to minimize losses and protect their capital against unexpected market drops.
📌 What is Stop Loss?
Stop Loss is a programmed order to automatically sell an asset when its price reaches a certain minimum value. This prevents you from having greater losses if the market drops quickly.
⚙️ How to use Stop Loss on Binance?
1️⃣ Access Binance and go to the trading tab.
2️⃣ Choose the desired cryptocurrency and click on Stop-Limit.
3️⃣ Set the activation price (when the order will be triggered).
4️⃣ Choose the limit price, that is, the value at which you want to sell the asset. 5️⃣ Enter the amount of cryptocurrencies and click Confirm.
📊 Practical example:
• You bought BTC at $30,000 and want to avoid large losses.
• You set a Stop Loss at $28,000.
• If the price of BTC drops to $28,000, your sell order will be triggered automatically, reducing your losses.
✅ Advantages of Stop Loss:
✔ Protects your capital against sudden drops.
✔ Prevents you from making emotional decisions in the heat of the market.
✔ Works automatically, without having to monitor it all the time.
🔹 TIP: Combine Stop Loss with Stop Gain strategies to maximize your profits and reduce risks!
