A stop is a risk-control instruction, not insurance
A stop-loss order is designed to exit a position after price reaches a defined trigger. It can help prevent a small planned loss from becoming an open-ended decision. But it does not remove market risk.
During fast moves, the first available executable price may be worse than the stop trigger. That difference is slippage.
Place the stop where the trade idea is wrong
A stop should have a reason. If your setup depends on support holding, the stop usually belongs beyond the point where that support thesis has clearly failed, not at an arbitrary percentage chosen after the position size.
Once the stop distance is known, reduce or increase position size so the planned financial loss stays within your risk budget.
Know the order type your venue uses
Crypto exchanges can offer stop-market, stop-limit, conditional, or trigger orders with different rules. A stop-market order prioritizes getting out once triggered but may fill at a worse price. A stop-limit order gives more price control but can remain unfilled if the market moves through the limit too quickly.
Read the exchange documentation before assuming two order labels behave the same way.
Avoid moving the stop just to avoid a loss
Moving a stop farther away after entry changes the risk you originally accepted. Sometimes a strategy can have a rule for trailing or adjusting stops, but that rule should exist before the trade begins.
If the only reason for moving the stop is that taking the loss feels uncomfortable, the plan has already changed.
Combine stops with position sizing
Stops and size work together. A wide stop with a smaller position can create the same planned dollar risk as a tight stop with a larger position. The chart defines the invalidation; position size keeps the account exposure controlled.
That relationship is more useful than searching for a universal “best” stop percentage.