To set a stop-loss order in crypto trading, follow these steps:
- Determine the level at which you want to set your stop-loss order. This should be a price point at which you are comfortable closing your position and limiting your losses.
- Log in to your trading platform and select the cryptocurrency asset you want to trade.
- Click on the “sell” button to open a short position or “buy” to open a long position.
- Locate the “stop-loss” option on your trading platform and enter the stop-loss price level.
- Set the quantity of the cryptocurrency asset you want to trade.
- Confirm the order and submit it.
Once the stop-loss order is set, the trading platform will monitor the market and automatically execute the order if the price of the cryptocurrency asset falls to the stop-loss level you specified. It’s important to note that stop-loss orders are not guaranteed to execute at the exact price level specified due to market volatility or slippage, but they can still help limit potential losses in case of a sudden price drop.