How to Use Stop Loss in Cryptocurrencies
Investing in crypto can be profitable, but it's also risky. Stop loss is a key tool to avoid bigger losses when prices drop.
What Is Stop Loss?
It's an automatic sell order. You set a minimum price — if your coin drops to that level, it sells automatically, limiting your loss.
Example:
You bought Bitcoin at $20,000 and set a stop loss at $18,000. If it hits that price, it sells on its own. You lose $2,000, but avoid a bigger loss.
Benefits
Protects your money
Removes emotional decisions
Keeps your strategy in check
Types
Fixed stop: set a specific exit price
Trailing stop: adjusts as the price rises, locking in profit
How to Use
1. Go to your exchange and find “orders”
2. Choose stop limit or stop market
3. Set trigger price, sell price, and amount
4. Confirm
Final Tip
Don’t set your stop too close to the current price. Use it with strategy and adjust as needed.
Stop loss won’t eliminate losses — but it can stop them from turning into disasters.
