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2. Intermediate Course

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  1. 1. What is Layer 0 in Blockchain technology?
  2. 2. What is layer 1 in Blockchain?
  3. 3. Second layer (layer 2) - what is it? 
  4. 4. Blockchain and its layers - What is layer three in Blockchain (L3)?
  5. 5. Ethereum 2.0 - What is it? 
  6. 6. Ethereum Proof-of-Stake (PoS) - what should you know?
  7. 7. Ethereum London Hard Fork - what is it ? 
  8. 8. What is the Ethereum Name Service (ENS) and how does it work?
  9. 9. Arbitrum: Ethereum scaling solution - everything you need to know
  10. 10. Polygon 2.0 - the value layer for the Internet
  11. 11. Ethereum ERC-4337 - what is it and how does this standard work?
  12. 12. What is an ERC20 token and how is it created?
  13. 13. The ERC-721X VS ERC-721 Standard – Key Differences!
  14. 14. What is cryptocurrency burning?
  15. 15. Examples of the use of WEB3 on the blockchain
  16. 16. What is Web5? 
  17. 17. Blockchain Oracle - what are oracles? 
  18. 18. Polkadot - Decentralized blockchain and DOT cryptocurrency
  19. 19. Polkadot Parachain - Next-generation blockchain
  20. 20. Interoperability in the world of cryptocurrencies and blockchain
  21. 21. What is Blockchain sharding?
  22. 22. Mainnet versus Testnet on the Blockchain. The complete guide!
  23. 23. MINA Protocol: the lightest blockchain in the world!
  24. 24. Sustainable Blockchain - Proof of Useful Work & Flux
  25. 25. Cosmos SDK: Building the Blockchain Ecosystem
  26. 26. What is cross-chain interoperability in Blockchain technology?
  27. 27. Blockchain trilemma - explanation of the problem. What is the impact on cryptocurrency payments?
  28. 28. Non-fungible tokens and NFT exchanges
  29. 29. How to make money with NFT?
  30. 30. What is the NFT licence fee?
  31. 31. NFT Gas Fee - what is it? How can you reduce your gas fee?
  32. 32. The main differences between static NFT and dynamic NFT
  33. 33. What is minting an NFT?
  34. 34. What are NFT Ordinals? A guide to Bitcoin NFT.
  35. 35. What is KnowOrigin NFT, and how does it work?
  36. 36. ERC-6551 - the new NFT standard. What does it bring to the non-exchangeable token sector?
  37. 37. What is NFT Lending all about? An innovative solution in the world of cryptocurrencies!
  38. 38. The Metaverse – a new virtual world
  39. 39. Metaverse – TOP 15 virtual reality projects
  40. 40. Technical analysis – is it worth using?
  41. 41. Trading order types: stop loss, trailing stop loss, LIMIT
  42. 42. Market Cap versus Fully Diluted Market Cap - the most important differences you should know!
  43. 43. Set up of Stop Loss and Take Profit orders
  44. 44. What are DeFi liquidity pools?
  45. 45. Real Yield in DeFi - what is this trend? What does it consist of?
  46. 46. Vampire Attacks in Decentralized Finance (DeFi): Explanation and Examples
  47. 47. What are wrapped tokens 
  48. 48. What are security tokens?
  49. 49. What are Social Tokens? 
  50. 50. Liquidity Provider Tokens (LPs). What are they, and why are they so important?
  51. 51. What is the Lightning Network, and how does it work?
  52. 52. What is Play-to-Earn (P2E) and how does it work?
  53. 53. Cryptocurrency steps - What is move to earn M2E?
  54. 54. Segregated Witness - what is Segwit Bitcoin all about?
  55. 55. What are Decentralized Cryptocurrency DEX Exchanges?
  56. 56. What is Curve Finance?
  57. 57. What is GameFi and how does it work?
  58. 58. What is Proof of Reserves (PoR)? How does it work?
  59. 59. DAO Investment: A revolution in the world of finance and investment
  60. 60. What is MakerDAO and DAI Stablecoin?
  61. 61. What is the SubDAO protocol, and how does it work?
  62. 62. How to Create Your Own Decentralized Autonomous Organization (DAO)?
  63. 63. Atomic Swap: What is an atomic swap, and how does it work with cryptocurrencies?
  64. 64. What Is Cryptocurrency Vesting? What Are Its Advantages?
  65. 65. What Is the Metaplex Candy Machine Protocol? How Does It Work?
  66. 66. What Is the BNB Greenfield Ecosystem?
  67. 67. What Is Slashing in Cryptocurrencies?
  68. 68. Royalties – What Are They? How Does This Type of Licensing Fee Work?
  69. 69. What is TradFi? The importance for cryptocurrencies!
  70. 70. What is the Real World Asset (RWA) trend in cryptocurrencies? Explanation and examples!
  71. 71. Pyth Network: a powerful oracle harnessing the power of Solana!
  72. 72. What are stables in the world of cryptocurrencies?
  73. 73. What Is Binance Oracle?
  74. 74. Shibarium: A new era in the Shiba Inu ecosystem?
  75. 75. What is an ETF? How will an exchange-traded fund on bitcoin work?
  76. 76. Symmetric and asymmetric encryption - key cryptography techniques!
  77. 77. Hedging in cryptocurrencies - great portfolio protection against risk!
  78. 78. How to create your own cryptocurrency? 
  79. 79. What is a Dusting Attack in cryptocurrencies? How to protect against it?
  80. 80. What is a Black Swan?
Lesson 43 of 80
In Progress

43. Set up of Stop Loss and Take Profit orders

In today’s lesson, we’ll explain what hedging orders are and how to use them in selected cases. The task of the position stop loss is loss reduction, take profit – profit security. You will learn about the possibilities they give us from today’s material.

Definition of Stop Loss and Take Profit

Both orders are designed to secure our trades in the market. Stop Loss is an order to close a transaction when its rate falls/increases below or above a predetermined level. We set it to increase the amount of cryptocurrencies we have, and thus – to maximize our profit. At the same time – minimize losses.

Remember that the protection of your cryptocurrency of capital should be the most important assumption of the strategy. Stop Loss we set it at such a level that the price has room for a correction and any room for movement. It cannot be located further than the maximum allowable and acceptable loss for you. We define it first, before we decide on the size of the transaction. Example:

We buy 5 tokens, the rate of which is USD 5,000/token. At the same time, we set a Stop Loss of $4,000. If the price of the token starts to fall sharply, then the exchange will automatically close our position at USD 4,000. As a result, we will protect as much as 90% of our capital against a price drop.

Take Profit, we include the so-called pending orders. It can be used for both long and short positions. It works automatically, so you don’t have to spend time constantly tracking the quotes and prices of your positions. Thanks to this order, we can predetermine the level of realization of our profits.

What does it mean? And the fact that we can determine the level of our profits, equally with purchase transactions, when we earn on increases, and with sell transactions, when we earn on declines. Example:

We want to sell Dogecoin for the price of $2. We set Take Profit at this level because we would like to take profit from our trade at this level. When the memecoin reaches the price we specify, Take Profit will close our position with a profit.

Why is it worth using Stop Loss?

As a good investor, you should analyse first risk. Then focus on profit. This approach will give you a better chance of success in the long term.

Level determination Stop Loss allows us to accurately calculate the size of the position and the amount we can lose during transactions. What’s more, this order limits our emotions during the decision-making process. This is a particularly important aspect, especially for novice investors. It saves our time and reduces unwanted, even gambling impulses, inconsistent with our assumptions of strategy. 

Why is it worth using Take Profit?

This assignment has many similar advantages to Stop Loss. How we use them depends mainly on our investment strategy. Thanks to Take Profit, we have much more control over the course of our investments. Importantly, it prevents acting with strong emotions.

How to use the Stop Loss instrument

In order Stop Loss, it cannot be placed on a random level. It is worth knowing where and why it should be located. Here are a few ways to help you place your Stop Loss.

  1. Trend lines – surely you know the saying “The trend is your friend”. Trend lines are a great tool to help you place your Stop Loss. A trend breakout is a signal for us to end or weaken the trend. In this case, it is worth setting the SL on the other side of the line. Then we will exit the trade when the price gives us a clear signal to do so.
  2. A candle Pin Bar – they most often appear at critical levels of support or resistance. They are very reliable, so it is worth placing an SL above or below the wick of this candle.
  3. Inside Bar – the appearance of this candle on the chart is a signal for investors about the continuation of the trend or its reversal. When you spot it, we set the stop loss order outside the parent candle.
  4. Moving averages – we could devote a separate lesson to them. In short, if the price of an asset is trending, it is moving away from the moving average. When the trend changes, the price returns towards the average. Then we set Stop Loss beyond MA 50 or 100.
  5. Consolidation– when you notice consolidation zones on the chart, you have two options to set up a defence order. The first – on the border of the consolidation zone, the second – behind the high or low of the candle that is there, depending on which candle we are talking about.
  6. Fibonacci levels – a good way to identify support and resistance levels. However, this is a more advanced topic that we will look at in detail later. Using this concept, we rely on retracement levels as a place to place a defensive order.
  7. Bollinger Bands – We set the Stop Loss above or below the middle band and move the order along with the trend.
  8. Setting Stop Loss based on price. This is probably the most popular tactic among investors.

How to use the Take Profit instrument

Just like with Stop Loss, the order can’t be placed on a random level. More advanced traders even perform technical analysis before locating it. You can also use some simple methods:

  1. Speaking of sales, we set the TP order myself above our support line.
  2. If we buy, we set to take profit below the resistance line
  3. Most often, this order is placed at a significant level of support and resistance.
  4. Considering the market spread.

Advantages of Stop Loss and Take Profit

Firstly, thanks to these two orders, we do not have to constantly monitor the market and quotations. We define the target levels of our trades in advance, which allows us to fully automate. With a little willingness and acquired knowledge, determining these two levels is trivial, even for a layman. What’s more, it’s a great way to control our emotions.

Disadvantages Stop Loss and Take Profit

In case of stop loss, its main disadvantage is that we can sell cryptocurrencies that can bring us profits later. However, when it comes to take profit, the final price of realizing our profits may slightly differ from the one we will introduce on the platform.

How to set Stop Loss and Take Profit on the platform?

To set a Stop Loss/Take Profit before opening a trade, go to the order window and enter the level you are interested in. If you want to place orders in an open trade, click on it and select the “Modify or delete” option.


For you, as a trader, the most important goal is protection of your capital. Don’t take risks if the potential gain isn’t worth it. Before you enter a trade, do a thorough market analysis.

Take advantage of the above-described orders that are for your protection. Every trade requires analysis, strategy, and evaluation – before you go into it. Do not rush and do not take advantage of “opportunities”, which can result in much greater losses. For those who feel unsatisfied with orders on the cryptocurrency market, we refer to our supplementary lesson.