Cryptocurrencies have ceased to live in the background of the internet in recent years, and today part of the financial world it happened. In our country, there are millions of people who invest in crypto money or are considering making it. Stocks or cryptocurrencies, what you need to know when you’re an investor some concepts there is. We explained one of them, what is the Stop limit.
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What is the stop limit in cryptocurrencies?
The term stop, which is frequently mentioned in the stage of investing in cryptocurrencies, is of vital importance for investments. It is possible to explain this term, which is very useful for investors, with a simple example. E.gYou bought a cryptocurrency with a price of $1000. If you enter a stop limit for $900, the asset in your wallet will be automatically sold when the value of that cryptocurrency drops below $900. Using your intuition to set a stop limit to avoid high value losses it’s in your hands.
Of course, this isn’t always a logical move. Cryptocurrency world it is risky and it will always be like this. It is also possible that the crypto money you buy drops to $ 800 as a result of a fluctuation and then rises to $ 1200. possible is a scenario. How you proceed here is up to you. If you use the stop limits in accordance with your money flow, you can avoid high losses. you can be.
There are many concepts like this in cryptocurrency investments. If you are considering becoming an investor, it may be best to have a basic knowledge of finance before taking the first steps.
How is the stop limit made?
How this can be done depends on the exchange you use. On Binance, the most popular cryptocurrency exchange, this can be done with the following steps:
- Go to the page of the currency for which you want to set a sell stop limit.
- After opening the Sales tab, click ‘stop limitSelect ‘.
- Set your limit price and choose how many of your units will be sold when the limit is reached.
- that everything is right after making sure confirm the order.
With these simple steps you can create a stop limit. If what you want is not to sell but to buy, simply select the buy option as you proceed through these steps.
Disclaimer: This content of ShiftDelete.Net does not constitute investment advice or recommendation. It was created for informational purposes.