The stop-loss strategy of Bitcoin traders is a core tool for controlling risk and avoiding huge losses. Here are some simple and understandable practical points:

1. Fixed Ratio Stop-Loss Method

Set a loss limit (such as 5%-10% of the principal). Once the price touches this limit, exit immediately. For example, if you buy Bitcoin for 10,000 yuan and the loss reaches 10% (i.e., 9,000 yuan), decisively stop-loss. This can prevent significant shrinkage of the principal due to 'holding on'.

2. Dynamic Stop-Loss at Support Levels

Observe key support levels of Bitcoin price (such as recent lows or moving averages) and set the stop-loss point 3%-5% below the support level. If the price breaks below the support level, it may initiate a downward trend. Timely stop-loss can reduce losses.

3. Volatility Adjusted Stop-Loss

Flexibly adjust according to the volatility of the cryptocurrency: Bitcoin has an intraday volatility of about 5%, so a stop-loss can be set at 7%; altcoins have extreme volatility (such as 20%), so stop-loss should be relaxed to 25%. Avoid triggering stop-loss due to short-term fluctuations.

4. Trailing Stop-Loss to Lock in Profits

If the position is profitable, gradually move up the stop-loss point (e.g., increase the stop-loss point by 3% for every 5% increase). This locks in some profits. For example, if you buy for 10,000 yuan and it rises to 11,000 yuan, move the stop-loss from 9,000 yuan to 9,700 yuan, so even if there is a pullback, you can still retain some gains.

5. Forced Stop-Loss in Extreme Market Conditions

When the market experiences significant negative news (such as sudden regulatory changes) or a single-day price drop exceeds 15%, immediately execute a stop-loss to avoid emotional trading. Historical cases show that investors who ignore extreme risks often face a zero outcome.

Key Principle: Stop-loss must be set in advance and strictly executed, avoiding delays due to 'gambling psychology'. It is recommended to combine position management (e.g., no more than 2% of total funds in a single trade) and profit-taking strategies (e.g., partial exit after a 30% profit) to form a complete risk control system.