Setting a stop-loss percentage in crypto assets is crucial to protect your capital, but there is no universal value — it depends on the asset's volatility, your time horizon, and risk tolerance. Here are the most commonly used guidelines:

1. Stop-Loss for Bitcoin (BTC) and Ethereum (ETH) – Low/Medium Volatility

5% to 10% (Short-term trading – day trade/swing trade).

Example: If buying $BTC at $100,000, place stop at $95,000 (-5%).

15% to 25% (Medium/Long-term investment).

Allows "breathing" in normal market corrections.

2. Stop-Loss for Altcoins (Top 50 by market cap) – High Volatility

10% to 15% (Active trading).

Altcoins like Solana (SOL) or Avalanche (AVAX) can fluctuate violently.

20% to 30% (Strategic hold).

Prevents being "stopped out" by occasional pumps and dumps.

3. Stop-Loss for Small Caps (Microcap Coins) – Extreme Risk

15% to 25% (If it’s a trade).

Small projects can drop 50% in hours.

If holding, consider not using a stop and accepting total risk (or manually selling during severe drops).

4. Support-Based Stop-Loss (More Accurate)

Instead of a fixed %, use:

Below a key moving average (e.g., 200 EMA).

Below the last swing low (previous low).

Abnormal selling volume (support break with high liquidity).

Example:

If the price is rising with support at $100, place the stop at $95 (-5%), not at an arbitrary %.

5. Stop-Loss for Leverage (Futures)

3% to 5% (Moderate leverage – 5x to 10x).

Example: With 10x leverage, a 5% drop liquidates your position.

0.5 to 1% (High leverage – 20x+).

Here, the stop should be very tight to avoid margin call and liquidation.

6. Psychology of Stop-Loss

Do not move the stop to "wait for recovery" – This turns into accumulated loss.

Use trailing stop (moving stop) if in profit.

Avoid round stops (e.g., $100.00), as they are targets for manipulation.

Conclusion

For short trades: Use tight stops (5% to 15%).

For hold: Wider stops or none (if you believe in the project).

Leverage: Strict stops (1% to 5%).

Golden Rule: Never risk more than 1% to 5% of your total capital in a single trade. If your stop is 10%, invest only 10% of your portfolio in that trade.

Need help adjusting a specific stop? Tell me about the asset and your strategy! 🔍