Guide
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Stop loss in crypto: what it is' and how to use it safely
What a stop loss is' where to set it, and the most common mistakes: the simple guide for beginners in cryptocurrency trading.
Why you need it
Cryptocurrencies can move by 5-10% in a few hours. The stop loss is an order that automatically closes your position when the price reaches a level you decided beforehand: it is used to turn a potentially large loss into a small and pre-calculated loss.
How it works in practice
You buy at 100 € and set the stop loss at 95 €: if the price drops to 95 €, the &x27;exchange sells. You lose about 5% (plus fees), not 30% from a sudden crash.
Where to place it
- Below a support: a level where the price has already bounced several times. Placing it a bit &x27; below prevents you from getting kicked out by "noise".
- Based on volatility: on very jumpy coins a too tight stop triggers continuously.
- Based on how much you are willing to lose: decidi prima la cifra (es. l'1-2% del conto per operazione) e calcola la quantità da comprare di conseguenza.
The most common mistakes
- Moving it lower "because it will go back up anyway": it's the fastest way to turn a small loss into a big one.
- Not setting it at all on leveraged trades: with leverage, a downward move can wipe out the position.
- Putting it on round numbers (e.g., 60.000): many orders pile up there and the price often sweeps through them in a sudden dash.
In short
A stop loss doesn't make you money: it allows you to stay in the game. Chi sopravvive alle giornate storte è chi ha ancora capitale quando arriva l'occasione buona.