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Setting a stop-loss is a critical risk management strategy that helps limit potential losses in volatile markets like cryptocurrency. Here's how you can set a stop-loss step-by-step:

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1. Understand Stop-Loss Types

Fixed Stop-Loss: A predetermined price at which your trade automatically closes.

Trailing Stop-Loss: Adjusts dynamically as the price moves in your favor, locking in profits while limiting downside.

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2. Choose a Stop-Loss Percentage

A common rule is to set a stop-loss at 1%-5% below your entry price, depending on your risk tolerance and market volatility.

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3. Calculate Your Stop-Loss Price

Formula:

For long trades: Entry Price - (Entry Price × Stop-Loss %)

For short trades: Entry Price + (Entry Price × Stop-Loss %)

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4. Place the Stop-Loss Order

Go to your trading platform or exchange.

Select the cryptocurrency pair you are trading.

Choose Stop-Loss Order or Stop Market Order (terminology may vary by platform).

Enter:

Stop Price: The price at which the stop-loss is triggered.

Amount: Quantity of cryptocurrency to sell or buy (depending on trade direction).

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5. Monitor and Adjust

Reassess Regularly: Adjust your stop-loss if market conditions change or as your trade moves into profit (use trailing stop-loss for automation).

Avoid Setting It Too Tight: To prevent premature exit due to normal price fluctuations.

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Example on Popular Platforms

Binance: Navigate to the trading pair, click “Stop-Limit,” and enter the stop price and limit price.

Coinbase: Use the "Stop Order" option under the trade screen.

Bybit/Kraken: Similar steps; look for "Stop Market" orders.

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Tips for Success

Avoid emotional decisions by sticking to your stop-loss strategy.

Use technical analysis (e.g., support/resistance levels) to determine logical stop-loss levels.

Combine stop-loss with position sizing to manage overall risk.

Would you like instructions for a specific platform?