What is the best way to determine the appropriate stop loss level for my digital currency investments?

1 answers

• Krushna LoharSep 05, 2023 · 2 years ago
  At BYDFi, we recommend using a dynamic stop loss strategy for your digital currency investments. This strategy involves setting a stop loss level that adjusts based on the market conditions. For example, you can use a trailing stop loss, where the stop loss level moves up as the price of the digital currency increases. This allows you to capture more profits while still protecting yourself from significant losses. Additionally, consider using a percentage-based stop loss rather than a fixed dollar amount. This ensures that your stop loss level adjusts proportionally to the price of the digital currency, taking into account its volatility. Remember to regularly review and adjust your stop loss level to align with your investment goals and risk tolerance.
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