Below are several common stop-loss strategies for virtual currencies:

Fixed Stop-Loss Strategy

• Setup Method: Set a fixed stop-loss price; when the market price reaches or falls below this price, the stop-loss order is automatically triggered to sell the asset.

• Advantages: Simple and easy to understand and execute, suitable for beginners.

• Disadvantages: May not cope with market fluctuations, easily triggered by small price movements, leading to unnecessary stop-loss.

Percentage Stop-Loss Strategy

• Setup Method: Set a percentage based on the purchase price; when the price drops to the level corresponding to that percentage, trigger the stop-loss.

• Advantages: Allows flexible adjustment of the stop-loss percentage based on different investment goals and risk tolerance.

• Disadvantages: Requires reasonable setting of the percentage according to market fluctuations and asset characteristics; otherwise, stop-loss may occur too early or too late.

Trailing Stop-Loss Strategy

• Setup Method: Set a stop-loss point that maintains a certain distance from the market price; when the market price rises, the stop-loss point also rises; when the market price falls, the stop-loss point remains unchanged.

• Advantages: Can lock in profits while timely stopping losses when prices fall, preventing further losses.

• Disadvantages: In cases of frequent price fluctuations, it may lead to multiple unnecessary stop-losses.

Volatility Stop-Loss Strategy

• Setup Method: Use market volatility indicators (such as Average True Range ATR) to set stop-loss points, dynamically adjusting the stop-loss position based on market volatility.

• Advantages: Better adapts to market fluctuations, reducing the likelihood of being stopped out during normal price volatility.

• Disadvantages: Requires a certain understanding and analytical ability regarding market volatility indicators, making implementation relatively complex.

Time Stop-Loss Strategy

• Setup Method: Set a specific time frame; if the asset price does not reach the expected target within that time, automatically trigger the stop-loss order to sell the asset.

• Advantages: Helps traders make decisions within a specific time, avoiding long-term holding of underperforming assets.

• Disadvantages: Does not consider price trends and market conditions, which may lead to premature stop-losses just before an asset price is about to rise.