Stop-loss

Once price reaches the stop level, the order typically converts into a market order (or a limit order, on some exchanges) and executes, closing the position without you needing to be watching the screen at that moment.

For example, buying at $60,000 and setting a stop-loss at $58,800 (a 2% buffer below entry) caps the loss on that position at roughly $1,200 per coin held, before fees, if price falls that far.

A common mistake is placing the stop-loss at an arbitrary round number instead of below a real support level. The trading-strategy knowledge base treats moving a stop-loss as effectively finding a fresh entry point on a smaller timeframe once that timeframe completes its own pullback and holds its own support — not just sliding it a fixed distance behind price.