Ride the Crypto Trading Trends in 2023 with the Most Profitable Trailing Stop Orders

Different Trailing Stop Strategies to Trade Effectively

So, you have already heard about cryptocurrency millionaires in 2022 and want to try your hands on it? Do you really want to invest in cryptocurrencies in 2023? You know, formerly, cryptocurrency was intended to become a global payment mode, but presently, people are investing in cryptocurrency to earn profits.

This might seem easier, but actually it is not that easy as it seems! A lot of investors are losing their hard-earned money due to the lack of knowledge about crypto trading. In all kinds of long-term investing and short-term investments in crypto trading, deciding the right time to exit a position is as important as finding out the best time to enter any position. When prices of crypto assets increase, investors are attracted to this and whenever the market crashes, they end up with heavy losses. But, you know there are certain strategies which can help traders to minimize their losses and protect their gains. Expert traders use different strategies and methods to earn good profits from cryptocurrencies.

Advanced traders always use different trading order types, automatic trading methods, and much more than just a basic buy and sell market order. Buy and sell orders at the market price of an order will usually ensure that your trade is occurring, but it may also include slippage. A variety of advanced order types are available to traders to set trades with specific parameters. Each trading platform will have its own set of offerings of the trade order types. While the most common order types used in the cryptocurrency market are market, limit, stop, stop sell orders, and stop limit orders. But the expert traders use some advanced trading methods to trade smartly.

To become a successful crypto trader, one of the most important strategies that traders can apply to their crypto trading strategy is to start placing stop losses or trailing stop orders like trailing stop sell, trailing limit sell, etc. even in the trending market. Using stops and trailing stops while trading cryptocurrency is the best way to preserve your investments or lock in profits. Along with this, you need a powerful strategy and tricks to make it work for you. Luckily, TrailingCrypto is one of the best crypto trading platforms that offer the right tools which you need to become successful. Let’s understand about some popular ones:

Trailing Stop

Trailing stops is one of the most important crypto trading strategies that help traders to maintain a stop-loss order at a precise percentage above or below the current market price of the asset. Trailing stop technique is used to buy or sell crypto assets if they move in an unfavorable direction. One can set these orders at a specific amount or percentage away from the asset’s current market price.

The key difference between a stop loss and trailing stop strategy is that a trailing stop moves as the price of a crypto asset moves, but a stop loss strategy can be used only in a trending market. Trailing stops provide the most effective and efficient ways to manage the trader’s risks. And, they use these order types as a part of their exit strategy.

For a trailing stop order to sell, placed on a long position, it will only move up. And, for trailing stop to buy, placed on a short position, it will only move down. Let’s know about these:

Trailing Stop buy Vs Trailing Stop Sell

Trailing stop buy order is always placed at a fixed amount above the current market price. As the price of the crypto asset falls, the order activation price is adjusted so that it is never more than a specified value or trail from the market price. If the price of the asset increases, the activation price doesn’t adjust. And, the asset will be purchased at the best price.

On the other side, a trailing stop sell order is placed at a fixed amount below the current market price of the crypto asset. As soon as the price of cryptocurrency increases, the order activation price is adjusted automatically so that it is never more than a specified value or trailing away from the market price. If the market falls, the activation price doesn’t adjust.

Trailing Stop Limit Order

Another popular strategy used by advanced crypto traders to limit their losses is setting a trailing stop limit order. This order type activates a limit order to buy or sell the crypto assets once the market price reaches the specified trailing amount which is just below the peak price of the crypto asset to sell, and above the lowest price to sell the asset.

Generally, Trailing stop limit order places a limit on your loss so that you don’t sell too low.

For example, say you have an asset say, ABC trading at $100, and you put a stop loss at $90 and a stop limit at $85. If the crypto asset suddenly crashes to $80, making your sell order $80, so, it wouldn’t execute the stop loss because it is below your limit of $85. So the stop limit will protect you against the fast price declines.

Usually, the price at which the trailing stop limit order is executed continuously resets if you enter trailing limit sell order and the proposed price of the asset increases.

Similarly, for the trailing limit order to buy, the price at which order is executed will be reset to a lower value constantly.

Placing ordinary stop limit orders only specifies the amount of loss you define while placing an order. But on the other side, placing a trailing limit order will automatically update your order to limit the maximum loss possible and turn the whole trade profitable.

Placing ordinary stop limit orders only specifies the amount of loss you define while placing an order. But on the other side, placing a trailing limit order will automatically update your order to limit the maximum loss possible and turn the whole t