Stop orders: Executive tool for investors cryptocurrency
As the world of cryptocurrencies continues to grow, the number of investors who want to protect their investments is also increasing. One of the effective strategy is the use of stopping orders – a powerful tool that can help prevent significant loss of market volatility or unexpected prices.
In this article, we will go to the world of stopping and explore how they can be used to protect your investments in cryptocurrency.
What stop orders?
A stopping order is an automated market order that indicates the intermediary for the purchase or sale of a specific asset at a certain price level. The term “stop” refers to the point at which the order is placed regardless of the market conditions. When ordering interruptions, you basically tell your intermediary to monitor the market and meet the trade as soon as it reaches this price.
How to use stops for investments in cryptocurrency
Follow the following measures to effectively use suspension orders for investment in cryptocurrency:
- Select your platform : Select a renowned stock exchange or broker company that offers automated business options.
- Set the price range : Determine the maximum and minimum price level you want to do. For example, if you invest in bitcoin, set up an order stop with 10,000 Satoshia per unit (SPK) to make a profit if the price reaches this level.
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Choose the order type : Decide if you want the market to stop the order or « order type » Stop the order (more about it later). The market stops are automatically carried out on the basis of market conditions, while an order of such as stopping your broker requires manual intervention.
- Set the trigger price : Enter the price level you want to activate the stop order.
orders:
There are two types of stopping orders:
* ORDER SUSPECTION
: Automatically carried out on the basis of market conditions, this type of procedure is suitable for long -term investors who want to leave market fluctuations.
* Ordering order order (OTSO) : You need a manual intervention of your intermediary, OTS stops are ideal for traders with higher market prices control.
Stop the benefits of using orders
There are several benefits that offer the use of outdated orders:
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Reduced risk : Determination of special price levels for which you are ready to shop or sell, Stop orders helps to reduce potential losses if there is a significant drop in prices.
- Increased discipline : Stopping orders requires discipline and patience, helping investors avoid impulsive decisions based on emotions, not the foundations of the market.
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Improved trade indicators : Exposure to extreme market conditions can generate better business indicators over time.
common imperfections to prevent
While stopping orders offer many benefits, there are some common shortcomings that should be careful:
* Excessive trading : Too often or at a low price level, set up stopping orders and you could be forced to trade more often than necessary.
* Insufficient price range : Price range setting can lead to unnecessary market exposure.
* Market in understanding : Understanding market conditions before setting an order can lead to a poor decision.
Conclusion
Stop orders are a powerful tool that can help investors cryptocurrency to protect their investments and achieve better trade indicators. By choosing the right platform, setting special price ranges and choosing your own type (market or OTSO), you can use the suspension order and stay forward in the world of cryptocurrency.
Keep in mind that it is important to understand the risks and rewards related to the suspension orders before using them. Hurry to learn how to use these tools effectively, and always keep your investment goals in mind.
