If someone tought me this 2 years ago, I would have had a lot more BTC than I have today. So here it goes.
!!Stop Loss: The ability to kick your crashes in the face, and still sit with a part of what you had.!!
In this example I will use Bittrex. The actual coin I am displayingdoes not matter, and instead I call it ABC.
So:
To Set a stop loss order in Bittrex you first need to enter the units you want to sell off.
I usually set Ask: Last, to get the current value in bitcoin, and then I change that value to whatever I want to try to sell for, SHOULD the market drop down to that level.
I den choose Type: Conditional, and Sell when: "<=" (Less or Equal too) as shown in the image below.
The reason why I have the conditional parameter at 5210, and the Ask price at 5200 (dont pay attention to why its 5k, just the difference between them), is that when the condition is met, the price might drop further, and it can be hard to sell for that exact ammount. Thats why I put the ask price a tad lower, so my account has the opportunity to sell at a LOWER than asked price, at that exact moment.
This way you can manage to avoid a crash, should the coin you are holding reach down to deep waters.
Hope you enjoyed it. Have a nice day!