"Stop Loss" in crypto trading. Explain in very simple terms.

[Fidelia]

The concept of "Stop Loss" is one of the most popular concepts in crypto trading. In very simple terms, what does "Stop Loss" really imply in the crypto world? How does it benefit a day crypto trader? When should it be applied in crypto trading?

 

[Suba]

Stop loss is an instruction to sell crypto when the price drops to a level that we have previously determined, it functions to reduce the risk of loss and to lock in the profits that we have obtained. Personally, I use Stop loss especially when the market is very volatile.