In the cryptocurrency trading sector, **Stop Loss** is a core tool for risk management, and its importance is on par with profit strategies. The following is a detailed analysis:
1. Why is it crucial to have a stop loss?
The cryptocurrency market is known for its extreme volatility, and sudden news (policies, hacking attacks, entry of giants, etc.) can lead to prices skyrocketing or plummeting in an instant. For example, in May 2021, Bitcoin experienced a single-day drop of 30%, and contracts without stop-loss could lead to immediate liquidation.
The amplification effect of leverage in contrac