Losing Money in the Crypto Market? Here’s 1 Way to ‘Stop your Loss’

Vinod Dsouza
crypto stop loss
Source: Pixabay

A cryptocurrency market is a brutal place where one crash can wipe away all your profits in a jiffy. Profits aside, the crash can take a toll on your mental health and limit your thinking capacity. In return, it makes you end up taking worse financial decisions thereon and be in a never-ending abyss of losses.

One loss can sometimes make your portfolio wait for weeks, months, or even years to claw back to the amount you first purchased. This makes your money sit idle for the entire time and is in no way working for you. The iconic phrase ‘make money while you sleep’ no longer applies to you and it’s only draining away each day.

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Crypto: How to Stop the Loss?

Source: Pixabay

The answer is right in the headline – Stop Loss.

Top institutions, financial firms, and well-known stock and crypto market investors go by the golden rule of investment- Stop loss. Unfortunately, only a handful of retail investors use ‘stop loss’ while trading which eventually ends up wiping their profits.

Once the portfolio dips, a string of losses follows through making the ‘purchased’ price seem to be too far. This can be easily avoided with the less used and the most important tool while trading, which is ‘stop loss’.

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Adding a stop loss not only limits your losses but also gives your money another chance to ‘make it, rather than sitting idle. The opportunity can be used to recover the ‘first loss’ and then make even. The money can be used again for investments with the fresh hope of achieving decent returns.

Setting a stop loss in all your trades can give you repeated chances to ‘make it’ again and maximize your profits. Now compare the power of ‘stop loss’ vs not putting a stop loss. Never keep money idle and always make it work for you even while you are asleep. Therefore putting a stop to loss is not only important but the most basic decision to protect you from losses.