$BTC Investment is an excellent way to reduce risk, especially in a volatile market like crypto.
Here are some of the best Stop Loss strategies that can help protect your investment:
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1. Percentage-Based Stop Loss
Example: If you buy Bitcoin for 1000 rupees and set a stop loss of 10%, as soon as the price drops to 900, your position will close automatically.
Benefit: Simple, effective, easy.
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2. Trailing Stop Loss
This stop loss moves up or down with the price.
Example: If the price of BTC rises from 1000 to 1200, and you’ve maintained a trailing stop of 10%, the new stop loss will adjust to 1080.
Benefit: You can secure profits while reducing losses.
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3. Support Level-Based Stop Loss
It is based on technical analysis. You observe the "support level" on the chart and place the stop loss just below it.
Benefit: A more considered stop loss, it doesn’t trigger without reason.
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4. Volatility-Based Stop Loss
If there is a lot of volatility in a cryptocurrency, a bit more margin is given.
Example: Placing a stop loss using the ATR (Average True Range) indicator.
Benefit: Prevents meaningless fluctuations.
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5. Time-Based Exit
This is a bit different: if your investment doesn’t reach the target within a certain time (for example, 1 week), you exit manually.
Benefit: You avoid emotional decisions.
