I'm going to explain to you how to use Stop Loss on Binance in a very simple way, step by step, using a simple example. Imagine that you are buying something and you don't want to lose too much money if the price goes down. Let's go step by step!
Example:
Imagine that you have bought some apples for $1 each and you hope to sell them when the price goes up. But what happens if the price of apples goes down? You don't want to lose too much, so you decide to put a limit on how much you are willing to lose. If apples go down to $0.90, you want to automatically sell them to prevent the price from going down any further and losing more money. This is what a Stop Loss does!
Step by step on Binance:
Step 1: Login to Binance
1. Open Binance: If you don't have the app, you can download it or go to their website.
2. Log in: Use your Binance account to log in. If you don't have an account, you can easily sign up with your email.
Step 2: Find the cryptocurrency you are going to use
1. Example: You are going to buy a cryptocurrency called BNB. Search for âBNBâ in the search bar.
2. Choose the trading pair: You will see something like âBNB/USDTâ or âBNB/BTCâ. If you have USDT (a stablecoin), select âBNB/USDTâ.
Step 3: Buy your BNB
1. Buy BNB: Let's say you buy 10 BNB at $300 each. So you spend $3000 in total.
- Now you have 10 BNB and you are waiting for the price to go up so you can make more money.
Step 4: Decide how much you are willing to lose
1. Think about your limit: You don't want to lose more than 1%, so you decide that if the price drops to $297, you will automatically sell your BNB.
- This means that if the price goes down, Binance will sell your 10 BNB so you don't lose too much.
Step 5: Set Stop Loss on Binance
1. Go to âTradeâ: On Binance, look for the section where you can buy and sell cryptocurrencies.
2. Select "Stop-Limit": This is where you put your Stop Loss.
- "Stop": This is the price at which you want the auto-sell to be triggered. In this example, it is $297.
- "Limit": This is the minimum price you would agree to sell your BNB for. You could put $296.50 to ensure it sells even if the price drops quickly.
- Quantity: Here you put how many BNB you want to sell. In this example, you put 10 BNB (the 10 you bought).
Step 6: Confirm your Stop Loss
1. Review the details: Binance will show you a summary of your Stop Loss order.
2. Click "Sell": Once you confirm, your Stop Loss will be ready.
Step 7: Let the Stop Loss protect you
1. Relax: If the price of BNB drops to $297, Binance will automatically sell your 10 BNB to protect you from further losses.
- If the price drops to $297: Your 10 BNB will be automatically sold.
- If the price goes up: Nothing will happen, and you will still have your BNB.
This way you protect yourself without having to keep looking!
