How to Set a Stop-Loss in Crypto (the Right Way)

A stop-loss is an order that closes your trade automatically if price hits a level you choose. It's the difference between a small planned loss and a blown account. Here's how to set one properly.

Place it where your idea is wrong

Don't put your stop at a random round number. Put it at the price that invalidates your trade — beyond a recent swing low (for a long), past a clear support/resistance level, or wherever a move proves you wrong. If price gets there, you want to be out.

Always keep it inside your liquidation price

Your stop must trigger before liquidation. If your liquidation price is closer to entry than your stop, your leverage is too high — lower it until the stop sits safely inside.

Size the trade around the stop

This is the part most people get backwards. First decide your stop level, then let it determine your position size so the loss equals a fixed small % of your account (1% is common). Our position size calculator does this for you.

Common mistakes

• Stops too tight — getting wicked out by normal noise. Give the trade room.
• Moving the stop further away when price approaches it — that's how small losses become big ones.
• No stop at all — relying on "I'll close it manually" almost always ends badly.