🔒 What is a Stop Loss in cryptocurrencies? $BTC $BTC $BTC

A stop loss is a protective tool used by traders to set an automatic exit point from a trade in case the price moves against expectations, in order to minimize losses.

Simplified example:

Suppose you bought ETH at a price of $2,500

and expected it to rise, but you do not want to lose more than 5%.

You set a stop loss at $2,375.

If the price drops and reaches $2,375, the currency is automatically sold to minimize your loss.

The goal? To protect your capital and not let emotions control your decisions.

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