Are you planning on building your fortune with cryptocurrency?
While many investors look into buying and selling crypto in the long term, you should consider trading. With crypto trading, you'll buy a particular token with the intention of selling it within the same day.
But how do you succeed at crypto trading if you've got a hectic schedule? You might wonder if you could set a stop loss on crypto while trading.
So, can you set a stop loss on crypto? Here's what you need to know:
Can You Set a Stop Loss On Crypto
If you find a great crypto trading platform, then it'll give you an option to set a stop loss on crypto. Before you place your trade, you'll indicate where you'd like to stop so you can minimize your losses.
You want to determine how much you're willing to lose. You don't want to lose too much that you'll have to postpone making your next trade.
Next, let's look at a few crypto trading tips to ensure success.
How to Trade Crypto
When you decide to trade crypto, you want to figure out which are the best cryptocurrencies to trade. You'll have to work with a healthy mix of Bitcoin and altcoins.
One great altcoin that you might have overlooked is Chainlink. This is an altcoin that works to connect blockchain and non-linked systems using smart contracts. You can buy Chainlink and trade it with other valuable cryptocurrencies.
You want to also consider keeping aside some fiat money to add to your trading account. This will be cash that you'll use solely for trading on a crypto platform.
Best Practices
Let's wrap up by looking at a few more best practices on trading cryptocurrencies and setting up stop losses.
Make sure you look at the charts before placing your trade. You want to look at the trends for at least one week. This will give you an idea of how low a crypto's value can go, so you'll know where to put your stop loss.
You also want to thoroughly research a cryptocurrency before trading with it. Don't just use a crypto because it's been recommended to you or because it's popular. When you understand how a cryptocurrency works, you'll get an idea of whether it's great for trading.
You should ensure that you set limits on your earning potential. You might get tempted to keep trading to maximize your profits. But if you get too greedy, you might end up losing your fortune when the crypto's value drops!
Start Crypto Trading
Now we've solved the mystery on can you set a stop loss on crypto so you can start making trades with your cryptocurrencies.
Make sure you set a stop loss to prevent making a major loss. You also want to ensure you don't get too greedy in case your cryptocurrencies crash.
Set aside fiat money to trade your cryptocurrencies. You also want to take time researching different cryptocurrencies so you can set up your trading strategy.
You can find more great articles on crypto on our blog.