If you are investing in crypto, you will have to accept losses from time to time. However, to avoid large losses, you must adopt some strategies so that you can keep your money. Setting up a stop loss is one of them. If you set up a stop loss in crypto, does it "destroy the crypto" or protect it?

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Stop loss is set for weak currencies, while strong currencies, even if they drop, return to the same price... and stop loss destroys you. This comment sparked a big discussion, and I wanted to share my perspective in more detail.

Crypto is still in its infancy

Cryptocurrencies are still relatively new compared to traditional markets. What we see today in rising and falling applies to what Charles Dow described over 100 years ago:

In other words: Many strong currencies today may actually return to their prices after a decline, but this does not apply to everyone.

Why might a stop-loss seem "devastating" now?

Because the market is in an early growth stage.
Many currencies go through massive cycles (Bull Run → Crash → Recovery). Liquidity is still increasing, so some sharp declines do not mean the end.

But the future is not guaranteed

History tells us that the strongest companies and innovations can collapse in the face of "Disruptive Innovation". Today, Bitcoin is leading. But can anyone guarantee that it will stay at the top forever? A new "Apple" may emerge in crypto, and we may see a new "Netflix" surpassing Bitcoin or Ethereum. And remember, the biggest threat to Bitcoin is its creator (Satoshi Nakamoto); this is the source of its strength, and if any sign of him appears, it could become its weakness.

Humans are affected and attracted to what is unknown or surrounded by mystery. And also don't forget that he owns about 4.7% of the total Bitcoin when his mining is completed; just one move from this amount could turn the market upside down. How do we balance stop-loss and future vision? In the short term: a stop-loss protects capital from sudden crashes.

In the long term:

Investing in strong currencies with thoughtful diversification reduces risks. Intelligence is not in eliminating the stop-loss, but in adapting it according to the currency and time period.

Summary

What reassures us now is that "disruptive innovation" in crypto has not yet emerged, and Bitcoin and major currencies still have a long time at the top. But history always repeats itself, and the day a stronger currency appears could completely change the game. Bitcoin today is the undisputed digital gold… but history tells us that nothing is eternal. The question is, will we ever witness an innovation that surpasses Bitcoin, or will it remain resilient for decades to come?