For example, if a crypto whale unloads coins worth millions of dollars to the market, the price might drop far below your stop price. You set the stop price to $95 and the limit price to $90. In that case, no one would want to buy your coin for $90 when they can buy it for $80 on the market.
The application of Stop Loss in Coinbase trading is essential when it comes to trading on highly volatile crypto markets. This conditional orders assist traders in preventing tangible losses and defining the affordable ones if the market turns bearish. In a nutshell, Coinbase Stop Loss triggers at the price level at which you want to get out of a market. When the price starts dropping and hits a level of Stop Loss on Coinbase, your position will be automatically closed. Overall, a trailing stop loss can be a helpful tool for protecting your investment in volatile markets such as the cryptocurrency market. Just be sure to monitor the price closely and set up an alert so that you don’t miss any major moves.
Setting a limit order highly depends on your trading strategy and the order type you usually perform. Short-term movements in crypto markets are as wild as they get. That’s why setting a stop loss order might be the best course of action for your portfolio’s well-being. Set Stop Loss Coinbase order, and define the price level, percentage of a price swing, or amount of crypto as your Stop Loss Distance.
However, you can easily trade with Coinbase Pro Trailing Stop orders via the Good Crypto app. Your created order will automatically appear in the “Open Orders” section below your chart. So in the case the market reverse, you’re protected against significant losses. You can fund your account with fiat money through different methods available on the platform. The Sell box is where you set the price and information of the asset you want to manage.
Try Trailing Stop Coinbase Orders to Achieve Even Better Results
I would be disappointed about selling my Bitcoin if that happened. I only want to sell if the price drops below that point, hence the $49,990 stop price. My $49,950 limit price gives me a $40 cushion to increase the odds that my order goes through and doesn’t get skipped over. One of the most popular American-based cryptocurrency exchanges is Coinbase Pro, formerly known as GDAX.
In this case, setting up stop losses will cause the platform to automatically place an order at the price you want to sell. GoodCrypto is one of the most secure crypto trading apps on the market. Trailing Stop orders are considered one of the best crypto trading tools. Improve your knowledge about this sophisticated feature with GoodCrypto’s detailed video guide. For stop-loss orders, you will want to set your limit price slightly below the stop price.
The benefit of a trailing stop loss is that it protects your investment from large losses if the price of the asset falls sharply. It also allows you to continue to participate in the UPSide potential of the asset if the price continues to rise. Every Trailing Stop Coinbase PRO trading strategy is simple but excellent for boosting returns while protecting what you’ve already earned. These conditional orders help to minimize your risk of loss while maximizing your gains by riding the price trend until it stops moving to your benefit. If you want to learn more about the essential details of Trailing Stops, we recommend you get acquainted with our article on its fundamentals. Now, let’s look at the main Coinbase Pro Trailing Stop Order strategies.
What’s the Difference Between Limit Price and Stop Price
Two prices are necessary because one is the trigger (stop), and the other is your desired price to sell (limit). When the price is dropping, it can happen very quickly and violently—having an automated way to sell your position can result in fewer losses. As digital currencies continue to grow in popularity, more and more investors are looking for ways to protect their investments. One way to do this is by setting a trailing stop loss on Coinbase.
- I feel that if the price were to drop below $50,000, it would go much lower.
- In this article, we’ll explain how stop-loss orders work and how to set them on Coinbase, so you are clear on this once and for all.
- Although it’s a great tool to protect your investments from significant losses, they do not guarantee that your asset will be sold at that price.
- Your created order will automatically appear in the “Open Orders” section below your chart.
- In a nutshell, Coinbase Stop Loss triggers at the price level at which you want to get out of a market.
Instead, try the Coinbase Pro Trailing Stop tool to go in and out of the crypto market at the most favorable moment. Coinbase Trailing Stop will aid you in locking in profits while protecting you from dropping money. Bring the maximum value to your portfolio and trade with an advanced conditional Trailing Stop on Coinbase Pro through the Good Crypto app.
Trailing Stop Loss Bot for Coinbase Pro
In a hypothetical scenario, I have one Bitcoin, and the current price is $51,000. I feel that if the price were to drop below $50,000, it would go much lower. So, if it drops below $50,000, I want to sell my Bitcoin, but I can’t sit here and stare at the chart all day long. As an advanced trader, you may also start shorting crypto.
One thing to keep in mind when setting a trailing stop loss is that you will need to monitor the price of the asset closely as it can fluctuate rapidly. You may also want to consider setting up an alert so that you can be notified if your order is executed. The most important thing is not to get confused between the stop price and the limit price. The stop price is the price at which your order will trigger, and the limit price is the price at which your assets will be sold.
In addition, it will also create a line on your chart at the point of your stop price. So you can now enjoy this advanced feature on every version of Coinbase. Karen is a senior technical writer and copywriter here at GrowFollowing. Her area of expertize are social media apps and new media. Open your order book, and go to the trading pair where you want to set the stop lost.
Coinbase Pro appears to have all the necessities that day and frequent trailers need on their transactions. In our definitive guide, find all details about configuring the Coinbase API key and adding it to Good Crypto. In our definitive guide, find all details about configuring the Coinbase Pro API key and adding it to Good Crypto.
How to Place a Stop Loss Order on Coinbase Pro
Because if the price dropped more below your stop price and it was set at the same level as the limit price, there might not be any buyers. Although it’s a great tool to protect your investments from significant losses, they do not guarantee that your asset will be sold at that price. Well, I believe $50,000 is a spot where Bitcoin could get to but then immediately go back up.
When you select to fill a stop loss order on Coinbase, you have to choose two different price points – limit price and stop price. Firstly, it’s imperative to own a cryptocurrency beforehand acquired through market orders. On Coinbase Pro, only primary Market, Limit, and Stop orders are presented.
- Coinbase Trailing Stop will aid you in locking in profits while protecting you from dropping money.
- In that case, you’ll place buy stop-loss orders to buy back the crypto you borrowed if the price goes up.
- Next, set the limit price slightly below your stop price.
- The stop price is the price at which your order will trigger, and the limit price is the price at which your assets will be sold.
- So, if it drops below $50,000, I want to sell my Bitcoin, but I can’t sit here and stare at the chart all day long.
In that case, you’ll place buy stop-loss orders to buy back the crypto you borrowed if the price goes up. In that case, when the price of ETH drops below $2,050 (stop price), the system will automatically place an order at $2,000 (limit price). Stop Loss Orders are simple to understand, but many people confuse stop price and limit price. In this article, we’ll explain how stop-loss orders work and how to set them on Coinbase, so you are clear on this once and for all. So, sadly, an open position placed on the standard Coinbase platform won’t experience limit orders if the price drops.
In some scenarios, the price can drop below your stop price if there are no buyers in that range. The process of setting stop loss will be similar in the app and on the website. When you place a stop loss order, once the asset prices fall to your stop price, a new order is added to the order book. But if the market moves really quickly, it might not get fulfilled. Setting a stop loss might be a good idea to control your portfolio better. You can manually buy Bitcoin or your other favorite altcoin, and to protect yourself, you set a stop loss.
A stop-loss is a conditional order that triggers at a given price. These order types are for automatically selling your crypto if it drops below a given price. The idea is that when the price drops below a certain level, it may keep going. My stop price will be $49,990, meaning if Bitcoin hits this price, my order will trigger. Other people probably have the same idea, so I’ll give myself some cushion and set my limit price to $49,950. In other words, if Bitcoin reaches $49,990, I will automatically place an order to sell my Bitcoin for $49,950.
Can You Set a Trailing Stop Loss on Coinbase?
Stop Loss order on Coinbase is a great way to limit your losses. By setting a stop-limit order, your assets will be automatically sold if the price drops to your stop price. For instance, let’s say you purchased 1 BTC at $20,000 and placed a stop loss order with a stop price of $19,500. If the coin falls to $19,500 or below, the exchange will automatically sell your asset to limit the potential losses. Next, set the limit price slightly below your stop price. That’s another safety net that protects you from big losses.
It has all the necessities a trader needs to buy and sell various cryptocurrencies. Buy and sell orders are easy to understand, but one of the more complex order types is called a stop order. In this guide, we’ll show you how to place a stop-loss order on Coinbase Pro.