How to Set Stop-Loss and Take-Profit Orders in Crypto Trading
TL;DR: A stop-loss order automatically sells your position when price falls to a level you set, capping your downside. A take-profit order locks in gains by selling when price reaches your target. In crypto, the two most common are stop-limit (set a trigger price and a limit price to prevent slippage) and trailing stop (a stop that follows the price up and locks in profit if it reverses). The golden rules: never trade without a stop-loss on volatile leverage, size your position so a stop-loss hit costs at most 1–2% of your account, place stops below meaningful support (not round numbers), and account for crypto’s volatility — tight 1% stops on Bitcoin will get wicked out by normal noise. Set your stops on the exchange where you trade (not a mental note), and avoid “no stop-loss” habits even on positions you intend to hold long-term. ...