Is the stop-loss strategy reliable when trading cryptocurrencies and which platform is best suited for it?

ByMannkommschon

Hello crypto experts,

I'm new to the world of cryptocurrencies and would like to benefit from your experiences. Therefore, I have a few questions that I hope you can answer.

First, I've heard that the stop-loss strategy is a good way to minimize risk when trading cryptocurrencies. Can you confirm that stop loss always works? Are there any limitations I should be aware of?

Secondly, I've tried various cryptocurrency trading platforms, but I'm not sure which one is best for using stop losses. Which platform would you recommend and why?

Third, I'm aware that long-term investing can usually be the better choice, but I find the idea of ​​​​making €100-1,000 in profit in just a few hours quite appealing. How are you doing with the stop loss strategy? Have you had good experiences with it, or are there other strategies you would recommend?

I would be very happy if you could share your thoughts and experiences with the stop-loss strategy with me.

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AnnaStark
AnnaStark
2 years ago

Can you confirm that stop loss always works?

SL always works, but there are two disadvantages.

  1. If you put the SL too close to the course, you will be stopped, and you will be more involved when you go up
  2. If there is a fast and big gap, the SL is not triggered to the set course, but to the first available course

which is the best for the use of stop loss.

This is insignificant, SL work on all platforms

In principle, I only set trailing stops, and that only when I have enough profit. I then set the trailing stopless at least 10% below today's course, so I'm backed down when it goes bad, can only earn a maximum of 10% less than today, but the price rises without slipping off in between 10%, my SL increases.

I don't trade cryptos, but stocks, but this is certainly 1:1 feasible

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Jespa666
Jespa666
2 years ago

Cryptocurrencies are very volatile, so your stop-loss will be activated quickly and you annoy when the course falls short of time, but after a short time rises again.

In addition, many have their crytos on a hardware wallet and not on a stock exchange. There's no stopping. The cryptocurrencies on stock exchange accounts are not subject to deposit guarantee. If the stock exchange is broke, the total loss threatens you. Only accounts in fiat currency (EU banks) are guaranteed up to €100,000.

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Mannkommschon
Author
Mannkommschon
2 years ago
Reply to  Jespa666

So, since I'm emotionally stressful, it wouldn't be a problem for me if the price rises or falls as long as I'm secure and make my profit. I consider this as a side job and have no €100,000, but rather a four-digit amount. So would I be safe with that?

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Jespa666
Jespa666
2 years ago
Reply to  Mannkommschon

Cryptocurrencies that are on accounts with stock exchange platforms and banks are not subject to any backup. They're not safe. You'd lose it. Therefore always secure on a hardware wallet.

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TheOrangePill
TheOrangePill
2 years ago

With trading you will only be poor but have fun staying poor…

Better buy bitcoin and put it on a hardwear wallet and in 2-4 years you will have much more than trading.

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verreisterNutzer
verreisterNutzer
2 years ago

Read this about Stop Loss.

It is not guaranteed that a sale can also be executed if a stop loss engages:

https://www.spiegel.de/wirtschaft/unternehmen/franken-kurs-ingenieur-set-2800-und-verlated-280-000-euro-a-1023799.html

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