Don’t Be Afraid of Cut Losses! 5 Reasons Why Stop-Loss is Important in Crypto Trading

Jakarta, Pintu News – Many crypto traders fail not because they choose the wrong asset, but because they are reluctant to cut losses. In fact, protecting the main capital is the key to staying afloat and having a chance to bounce back.

1. Why Cut Loss is Mandatory?

• Control losses so that a single correction doesn’t wipe out the entire portfolio.
• Maintain the vitality of the fund so that there is still capital to re-enter at a better moment.
• Avoid emotional trading, which often turns into a gambling mindset.

Also Read: 5 Native Tokens with the Best Performance According to Birdeye Data

2. How to Set Stop-Losses Scientifically

• Determine the entry point and stop-loss point before entering the position.
• Usually, stop-losses are placed slightly below the support or resistance level.
• Limit losses within the range of 3% – 5% of the total portfolio.
• Execute with discipline without hesitation and without delay.

3. Lessons from Stop-Loss Failure

A beginner trader once opened a position without a stop-loss. When the price reversed, he held the position, hoping that “it would come back”. The result? A loss of hundreds of dollars turned into thousands and a margin call.

👉 Important message: hope is not a strategy, and delaying cut loss only makes the wound bigger.

4. The Difference between Wise Traders vs. Emotional Traders

• Wise trader: willing to accept small losses to preserve capital for the next opportunity.
• Emotional traders: reluctant to cut losses, increase positions, and lose all capital.

5. Cut Loss = Capital Defense Fortress

In trading, a loss is not the end. Instead, with the discipline to cut losses, traders have the opportunity to re-enter the market with a healthier psychological condition and capital.

Conclusion

Cut loss is not a sign of weakness, but rather an art of survival in the crypto market. By protecting your main capital, you have a chance to bounce back the next time. Remember, in the investment world: the one who survives wins.

Also Read: 7 Ethereum (ETH) Developments to Anticipate in 2025

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Binance Square. Don’t delay in cutting losses, cut when you’re at a loss!. Accessed on August 18, 2025.