$BTC
🫣🤔📉 What Is Stop Loss in Crypto Trading?
A stop loss is a safety tool that automatically closes your trade when price hits a level you choose — to prevent bigger losses.
Think of it like a risk control button 🔒
🔹 Simple Example (Spot Trading)
You buy BTC at $50,000.
You don’t want to lose more than $2,000.
So you set a stop loss at $48,000.
👉 If price drops to $48,000, your BTC will automatically sell.
👉 Your loss is limited.
👉 You avoid emotional panic selling.
🔹 Example (Futures Trading)
You open a long position at $50,000.
You set stop loss at $49,200.
If price touches $49,200 → trade closes automatically.
This protects your capital from liquidation.
🔹 Why Stop Loss Is Important?
✅ Protects your capital
✅ Controls risk
✅ Removes emotions
✅ Helps long-term survival in market
Without stop loss = one big dump can wipe your account 😅$BNB
🔹 Types of Stop Loss
Market Stop Loss – Closes instantly at market price.
Limit Stop Loss – Closes at a specific price (may not fill in fast crash).
Trailing Stop Loss – Moves up with price to lock profit.
🔥 Pro Tip
Professional traders risk only 1–2% of their total capital per trade.
In crypto, volatility is high — so stop loss is not optional… it’s necessary.