Bitcoin Forum

I had a few stop loss order filled todays dump happened a few hours ago, sadly that's the point from where coin moved up.
I just have realized that stop loss order have a significant influence on massive price decrease.
If a crypto is currently trading at $2, and someone has a stop price of $1.8, selling at $1.79. See, when the price hit $1.80, you are forcing the price to go lower. And same happens in the stop market option too. As you are selling at market best price.
What's your opinion? If there are few stop loss order on certain coins, how does it influence the massive dump? Please share your thoughts.

Stop loss order is very important for someone not to lose much during abrupt price drop. I think this question is like saying can fire burn a house? Yes fire can burn a house. Stop loss will not do anything than price drop. With this current price drop, traders are mostly responsible for it, many of the trader have learned how stop loss is very important and do not play with it. That is why the price will drop from one stop loss set to another, but at that point, it is also in conjunction with people selling also without stop loss. Stop loss order and selling market order do responsible for price drop both together.

Which price do you set up your stop loss order?

Your stop loss orders would be set up at the price much higher than the nearest strong supports you define from chart.
It would be a price a bit lower than strong resistance that if is rejected, price will be fallen back. It would be your entry price. Stop loss does not mean stop loss eventually, it is to stop your position, and the best is stop at price that can 100% protect your capital.

Better, it would be a price can help you to get small profit and exit your position.

You probably set up your stop loss at strong support price and sure price will bounce back strongly.

In general, stop loss recommendations are in the 5-10% range of capital, so the highest sell order originating from the stop loss is only in the area of decline of up to 10%. Don't ignore that trading bots are still doing their part. The massive dump occurred because the volume of buy orders globally was lower.

Large players deliberately move the price towards a large accumulation of stop-losses in order for the price to accelerate downward as a result of massive triggering of these orders. You see, it can be compared to a room with many charged mousetraps. It is worth throwing a pencil on the floor, as one mousetrap works, bounces, makes another work, the third one, and so on. A chain reaction begins. As a result, the price will not stop moving until all nearby stop losses are triggered.

Its hard to tell since not everyone have their own stop loss level, and some are just playing around the market especially the whales. This pullback is big, and this is not just an ordinary stop loss level because the price broke many support level. I personally sold during my stop loss level, because for me I can’t stop the market from dumping if I still hold into it, there are times that you need to sell and take profit, its time for that.

Stop-losses do have some added selling-side pressure due to the obvious reason that you're ending up selling your position, but when talking about higher liquidity coins such as BTC and ETH, it's a pretty safe assumption that it has a really minimal effect. Taking into consideration that while the stop-losses of some traders are getting triggered, buy offers of some traders near that certain price are going to get triggered as well.

You always have to make a difference between placing a stop-loss order in a bull and bear market, as of now we can go as low as $30k and still be bullish mid/long-term, so keep that in mind while creating a stop order for your trade

Basically it's smarter to place your stop-loss order on lower prices in a bull market and on higher prices in a bear market, also technical analysis comes handy while placing stop-order in these kind of situation since you can draw some lines on chart and figure out where is the best place that you could place your stop-order that assures you that your order won't get hit unless when it really wants to go all the way down, it does not guarantee that the price stays lower than your exit price but at the very least makes it less likely.

You're just protecting yourself when you do stop loss.

As for the massive dump, I don't think that it's massive when you're putting yourself into stop loss. In that way, you're just avoiding to lose further if the market goes side ways.

I don't see it as you contributing to a massive dump.

When more people set their stop loss to protect themselves from further loss it helps the panic sellers to come into play which increases the dump. Simply selling more than buying will help the coins to go lower it happens all of a sudden in huge rate then everyone want to save themselves than thinking about market. isn't it?

Cryptocurrency is not all about buying and selling of coin lots of people believe they are in profit already after buying a coin and they can't lose there money. but when it comes to cryptocurrency anything can happen you can lose all your funds to a coin you can't trust any coin anything can happen, after buying a coin the first thing you have to do is to set your stop lose to avoid lost of your fund. When ever it comes to cryptocurrency anything can happen at any time and is better for you to lose 5% of your fund than you losing 80% of your funds that's why stop lose is very important. Some people don't believe in stop lose they believe is just a trap, everybody has his or her own method that works for them so I won't also say people that oppose stop lose are also wrong but me personally I really believe in stop lose and I will advise everyone to always use it after buying any coin.

Even if it is also a contribution to the massive dump, it is the right of each crypto holder to decide "stop-loss". No one wants big losses in the correction phase, and we may try to sell the coins to buy at lower prices. It is a strategy that can be done by each holder, so nothing wrong with this option. I also will do it if I know there is an upcoming big correction/dump.

Well, it certainly forces the market to go down if most stop-loss orders were filled. But then again the opposite could be said to be the same. Buy orders would be filled together with stop-loss orders so it would cancel each other out or at most, a small discrepancy between the two. That is unless, of course, it was intentionally brought down continuously. Still, though, stop-loss is set up to benefit you, not the entirety of the market. Even if it was manipulated, it'd still in the end save you and possibly give you more opportunities to buy at a lower price, so nothing wrong with it tbh. In the end, trading is basically taking someone else's money.

I always felt that stop loss is the main reason for alts to bleed red whenever Bitcoin drops a couple hundred or thousand dollars. The automatic selling of alts will trigger more and more when the prices drop with it. Even a strong buyer will just wash away if the wave is hard. I know that there are lots of investors who use alts as just a means to grow their Bitcoin but putting stop loss all the time is not a profitable way.

As long as the order of the one who is dumping/sell can fill the entire buy order book, it wouldn't matter. So even if it hits your stop-loss price, as long as you have the order there waiting, you are just filling his order. It wouldn't be traded if you have no orders there. There's always going to be someone's order there no matter what. Especially if the price is close.

It's basically completing the trade.

If we go with that analogy there will be a moment when the moustraps will end, either because there is no more mousetrap left or because one mousetrap will land on another that has been activated so all the non-activated ones will be safe, but in the end it will end and it is not a forever thing. Now what we have to try to calculate is this; will mousetrap will activate another or is it ending with the next one?

If we can calculate something like that we could actually do a great deal of profit from what is going to happen, if you think it will continue to go down more you could buy a short future and make a lot of money, if you think it will stop and go back up then you could buy long future or just buy straight up and make a good return as well. All we have to do is know when it will end going down because it is obvious that we are not going to see bitcoin at 50 cents right? So that means there must be a price where it will stop.

That's the usual logical sequence in the market.

But that's my opinion if he has to stop loss, he don't have to see himself contributing to the massive dump because he's protecting his assets and he can do anything that he want such as stop loss to avoid more loss.

Stop loss is the best thing to be relied upon in crypto currency trading; There was a flash dump just 2 days back and people went as high as 60% losss; a stop loss would have prevented that. The only reason why stop loss is said to aid dump is because of traders with fear. Why set a stop loss to 2% loss? better not to trade at all.

Stop loss in your trades is the best decision, never let anyone convince you otherwise as long as it related to crypto currency. You should just be bold enough to set your stop loss at 5-15% gap; to ensure your trade remains alive.

I read somewhere that the dump was due to a mining pool (F2 Pool) sold a huge amount of bitcoins (3633) and leveraged x100 for the selloff. Those who tried to take advantage of the current price movement got liquidated but its not likely that it had something to do with the recent dump. Not sure how accurate the F2 Pool selloff rumor is but stop losses are essential especially in a crypto market that is volatile. Stop losses poses as your security blanket. What's important is how to properly place your stop loss. Ideally, it should be where you can still have a little profit from your first buy but when you're in a bull market like right now, where dips are bound to happen but a bounce is more likely.

That also attracting buyers to lower their buying price. The more traders use this one in a single coin, the more chance to get rid of it and dumps it straight.

But for the buyer's side, they are happy to see this. The huge benefits are now for buyers and they are catching these panic sellers to keep moving down the price and after this, these buyers will manipulate the market and set back the price too high.

But I know that this strategy won't bring the market at worse, just sometimes to accept that it never works that great and beneficial all the time.

Stop-loss is only useful for those who do actively trade and setting up 2% stop loss would easily be eaten but it actually have some pro's because you an eventually earn those
even if you do have lots it and this will vary on someones capacity.Playing with prices or volatility is hell of a lot stressful thing to be done.

Bitcoins price can swing up to 10% correction and if you do set some shallow stop loss then that would really be easily eaten or triggered up.

When you do make swing trades then this kind of tool wont really be that necessary.

There is of course a bit of a detail that many people forget and you should add that too. If you deal with stop loss, specially with a lot of drop as well, you should also focus on getting back in part of it as well, why? Because if you just sell, and do not buy, that means you just lost money and that's it, end of story. I do not think that it is really reasonable to use stop loss without any intention of getting back in.

If you plan on getting back in, what does it mean to have a good profitable return? It means that you should get out quicker and you should get in at the bottom, that is the ideal, so having a 20% stop loss is cool, and going back in when it is 30% or so down would be smart move as well. I do not know how you could handle the numbers, everyone have different numbers, but there is a fact that you have to figure out what to do after stop loss is hit.

I think you are talking about the Bitcoin slight downfall recently but the topic is actually about usage of stop loss function and if it actually helps or just makes things worse since we could have waited and got better price for the same token/coin.

With bitcoin I will never even think of using such functions because the price always swings but I use it for some other coins because I cannot keep a track of all the coins I own and how they are performing so the best way to maintain portfolio and avoid big loss is to place orders at lower than the market value in case the coin drops, we don't lose too much money for that one coin.

If you are planning to book the profit thinking that the market is having a major correction then you might use the stop loss function with bitcoin, if not even i will not use the stop loss function if you are a day trader because the massive swing in price on a daily basis. The options are great for the stock market but you are right it is not a perfect fit in a highly volatile market like bitcoin.

Stop-loss does only one thing and that’s to stop your losses from going further. You set it up because you don’t want to lose too much, so it helps you prevent that from happening. But starting up the trade again is up to you, you can decide to buy back that coin again if you want.

It can as well be the other way round, the price can drop and instead of going up, it can just continue going down from there and having your stop loss feature ready and set will prevent you from that too much loss that you would have encountered during your absence. It’s just how it happens, sometimes you’re so unlucky and prices will go up after dropping to the level of your stop loss.

Has happened with me too in past and it feels like stop-loss in the worst thing but I have been saved multiple times then I feel like its a blessing. So, I use it now but I don't use it on coins which I know have the potential to rise again but are currently down.

Yes, it is kind of a domino affect where one sells and the whole market starts drifting down but I don't think small traders play a big role in this. Our small orders placed at lower value indeed cause the market to decline even further but its like taking away a spoon of water from the sea, it is negligible.

Obviously a stop loss is going to have a negative effect when a dump is happening, however that is a concern that no one should share, if you are trading then you are in it for yourself, your goal should be to earn money and nothing else, while a better understanding of the market could seem to improve your chances of making profits there is also knowledge that will not do so and this is one of those instances.

A stop loss is nothing more but the point in which your losses become simply unacceptable for you the trader and in which you decide to automatically sell, its aftereffects on the market are clear but it is not necessary to think about it since that does not benefit you in any way.

it just seems so, but stop loss is a protective means to reduce your losses when trade goes against you. this dosent force the price down, because markets usually retraces and these retracements mostly go to touch some tight stop loss which after it will change trend and move higher. thats how it plays out.

There is nothing like that man, it’s just because of how you set your stop loss, I guess you were trying to save much, and when you set it at point that is very small like that, just a slight decrease and the stop loss will cut your trade, so it’s best to increase it a bit more so that it will only happen when there is a bigger decrease in price.

And moreover when you set a stop loss, you already know what happens is that the stop loss will activate when it drops to the set rate and the trade will cut, so why then do you complain about the settings you have made yourself? You’re supposed to be watching your trade, when the stop loss saves your loss, then you put the trade back in if you think it will go up.

Recently i also use stop lose maximum time. I think stop lose is important at this market situation. Stop lose really save us from big lose. But, It’s very important to set stop lose at right price, Otherwise we can miss profit sometimes.

Actually my opinion used stop loss only when you are gonna be busy to watch or monitor the price of your trades. Cause there are some whales that can triggered closer range of your stop loss resulting to dumped. Yeah that's the thing about stop-loss, I hate to use it cause when I'm not around and checked it. Damn, the stop loss triggered and the price climb back up. It's like letting your loss prevail which better if you hold and wait for it to climb.

This is very true. Have you ever wondered by the market dumps massively by 7-10% so quickly as compared to when it's rising?

It's because after a small dump, stoploss orders are triggered in the spot market leading to a chain of triggering other stop losses

I always try to set my stoploss order at some percentage below a good support level because prices tend to bounce off at support levels

I believe that if you've got to know correct retracement points, correct order blocks as well as can see whale orders and even volumes, then I believe there's nothing that could get you stopped out unless a sharp move takes place. Check the support areas and if you believe that they're the places where bots take (or shake) out their positions and create a wick to eat the stops below the support, just wait till that area comes because that becomes your buy zone and should be bought there only. Watch for the lower lows from your entry point and then, set your stops there (keep the timeframe low to get correct points) and check resistance areas too, if you believe that the price will fall back, sell it right up there and then repeat it for 2-3 times (like swing trading). Stops only take a hit when the market volume gets exhausted, remember that.

I don't agree that stop-losses can lead to massive dumps, because every trader doesn't necessarily use the stop-loss feature. Although many traders
use the stop-loss feature, it is very unlikely that they will set their stop-loss at the same percentage price. Another thing that makes the stop-loss is
not necessarily the cause of the massive dump, because every trader does not necessarily use a stop-loss feature on the same coins. Therefore, for me,
it is very unlikely that the stop-loss will affect a massive dump.

I get what you're saying but stop losses are only placed by people that can't incur further losses, that is when placing a sale stop loss. Whether you place one or not, in my opinion does not reflect the market and it may cause a dump but let's not forget that these stop losses can also be placed for buying orders. Stop losses being triggered one by one where the market can go into a downward tumble, is often when there's low trending volume. Though, ultimately, it depends no the market.

True, people need to remember that the overall movements we see on the market are an aggregate of what we do as individual investors or traders, if more people were investors and held their coins for the long term the volatility will be many times lower, but since there are many people out there that want to be traders and are using leverage then this increases the volatility especially when the price goes down.

This is because two factors, the first factor are margin calls which happens when your leveraged trade goes against you and your position is closed, and the second factor is your stop loss which adds liquidity to a market that already has too much and it is why the price is going down.

If you are directly in front of the terminal, there is no need to set a stop loss. Most stop-loss triggers are caused by false breakouts of the level, after which the price is restored. I try to close trades manually if I see that the price is fixed below the support level.

Judging from the phrase "stop loss" it is very clear that it is to stop losing our portfolio. so that this method is very important in minimizing large losses. maybe that's a very general definition. Means the stop loss method as a reminder. (maybe what I say is almost the same). However, most of us assume that stop losses are often underestimated, have the intuition that prices will continue to rise and fall, and when our attention is not focused, big losses are inevitable.

Stop loss is a red line to avoid falling into a deep abyss.

Limit/Market Orders are something that you can analyze and see what is the sentiments of the traders holding the asset so you are right there is a big influence in the mind of the traders when they see the buy and sell orders of an asset.

Example scenarios

• When you see that the sell orders are a lot of and there is a thin buy order

          this only tells us that the ones holding it are selling and barely anyone is interested in buying at the current market value

• When you see that there is a lot of buy orders and sell orders are thin

          this can be translated to a lot of people are interested in buying while only a few people are interested in selling their position at the current market value
 
Everything you see even outside the charts of an asset can be translated into something but keep in mind that this can be manipulated by traders or a group of traders as well as they can put int temporary buy and sell orders just to sway the market in their way so you always have to confirm if the orders are really being filled in or not.

If was trading the markets and I was watching the market action I would still use a stop loss, the reason is that the market can move a lot faster than what you can react, we know this happens with bitcoin all the time with big positive or negative candles.

You need to have your stop loss already in position before the price slips past your selling point and you lose even more money than what you thought you would lose in it, while this may not seem like a big deal over the course of hundreds of trades this quickly adds up to a lot of money.

Stop-loss is the guarantee that you'll be safe from huge losses but I don't think it is a need to do that when we are a full-time trader or when we are facing the computer. Maybe that late reaction isn't long enough for the price to dump 5% or 10% that we might miss.

But anyway, the result of our trades will matter on how we manage to it. Using stop-loss or any strategy might found less effective if we are not going to use it properly.

At the past, I never used stop loss and this made me losing much money and also my coins were still here losing much price. Here, I started to decide to use stop loss to minimize the loss. At this time, I can set the SL in order to manage how much I will lose and then make the funds to move to other coins and make another profit from other coins. I think that it is better than only waiting for the price to increase but in fact, always falling

There will be profit loss in crypto it is better to sell from stop loss to stop the effect of loss on huge dump if the price goes up you can get more profit by selling it is better to study the market from stop loss and sell it if there is a possibility that the price of the currency will go down. Reliable sites are required for stop loss.

We have to be ready in any situation, stop loss is really needed when the dump occurs, therefore it is very important when we see that the price has started to correct, so that's where we are ready with the stop loss by running the one that has been installed.
But for me, what is the market condition if it is possible to install it will probably also be but I see the market is doing well so it is still far from a big overall dump for the current market.

What a convoluted way to say: better to specify your exit, regardless of profit or loss, by using stop loss or take profit. Agree, and if you can, use trailing stops then if you aren't ready to give up profits.

With more DEXs now also using it, there's really no reason not to use them anymore. Unless you're hodling like me then of course, you keep it in a wallet and don't check daily anymore:)

Stop Loss is used to minimize losses, small or large time frame must use a stop loss, especially traders who trade many coins at once.
In my opinion, stop loss is very mandatory, especially when trading in the cryptocurrency market, because sometimes the market moves beyond your expectations, the price can fall by more than 30% in a few hours, such as the events of 12 March 2020, the price of bitcoin fell by more than 30%, if at the time it didn't set a stop loss, I believe the loss is very much.

I think stop loss don't influence massive dump, I always believe that there is the true price of a Coin that represent the power of company behind it. When the coin is undervalued there are some investors who buy it. I am one of those investors who really like to find coins which is undervalued so I can get very good position in trading. I only need to wait for several months until the bad sentiments didn't affect the coins anymore. The key is fundamental analysis, if the company is good then I will buy it's coin.

Minimize losses with cut loss its good because many trader always use stop loss when entry some coin, but for holder keep hold and waiting until price back again, I don't have any ideas to cut loss because I am most patient waiting for price back to higher, just if have any urgent then I will cut loss position.

The presence of a stop loss for a trader is a prerequisite for trading. Of course, there may be unforeseen circumstances that are beyond your control, such as a power outage or a short-term lack of internet. In such cases, if you trade with margin, with a sharp decline in the price, your position will be liquidated by the exchange.

Maybe that will depend on the situation on the market because we do not know if the price will still go down, so maybe we can hold for a while and see what will happen to the market. If we want to cut losses, we need to make sure that the price is down too deep, but that will not be easy since we can not accurately predict. But for holders, will still hold their coins even if the price is down, but they will buy more at a low price.

Cutting losses when you're not ready and don't have a buying strategy at the bottom again will be very risky. Cutting losses must be planned in advance, whether to fall deeper or not. If the price continues to rise while cutting losses, it will only lock in losses.

Being a strong holder would be better, but the holder also needs to analyze whether the coin has a good potential to be defended or not. Don't hold onto a coin that has no future developments, it will only be a waste of time.

Of course it is very influential, if there is a dump then you will be safe, for example if you put your stop loss at -5%,
and when it happens dump it is at -20%, then your money will be safe from another -15% loss, of course it can.
give you a new asset again when you buy back later, even though the stop loss looks useless, for me stop loss is very important at a certain time

So maybe we can just hold and buy back more amount at a low price. Most traders cut losses because of the panic to see the price is going down fast. Maybe they need to have patience and not panic and make another plan, especially if the price is not stable.

Analyzing will be the important thing that we should do to find the potential coins, and do not attract to invest in the coin because of the news because we do not know if that is true or not.

Everyone who is experienced trading in crypto is using stop loss. I used it today for ADA after it dumped so hard after listing on coinbase was live. I used it finished in good profit and it worked good.

The problem is that this assumes that a human is going to have perfect reflexes and will watch the markets every single second in which he is trading, but we are humans not computers, you can receive a call, eat something or be distracted by your family and suddenly you realize you have not watched the market for half an hour only to find out the market moved way more than what you thought and now you need to sell for a loss.

Humans are great at problem solving but terrible at monitoring something for longs periods of time, especially if you are watching several markets at the same time, so it is better to save ourselves the trouble and use a stop loss even if you are a day trader.

I think Stop loss hunting has become too frequent in crypto market these days. It's bots and computers trading which somehow know how to detect some strong supports along side which most people have put their stop losses. I think these days mental stop losses and seeling only after the candle closes is a better strategy than to put automatic orders be it a buy order or a stop loss order. I have seen a lot of long wicks these days. Moreover with high leverage trading going aroundd these days this thing is profitable for exchanges too so I won't be too shocked to know that Exchanges are colluded in all this too.

Stop loss to increase with your loss and good because you can get chance to buy other coin and recovery with your loss on coin before, but many time after stop loss coin back to higher price. I will hold and never put stop loss with spot trading but now for future trading, I believe coin will easy back to higher price when bitcoin keep stable on higher price.

If you are trying to trade having a stop loss is one of the most important things you should know because this might prevent losing all of your funds. This is the common mistakes of the people they keep their funds with the exchange or their wallet and just having on their mind that this coin they hold might back from the top and take back their money is they keep holding this around the higher the chance they dig into too much loss. And if you are mentally able to know what's happen you don't even risk all of the money you have.  It's better to stop or cut your loss already before taking all of your investments.

I think stop loss is an automatic thing, so internet outage or power outage should not mean anything, you put stop loss into the system itself not into your computer or something. It means as long as the website continues, you are free to do whatever you want, if that wasn't the case stop loss wouldn't mean anything while you are asleep or eating or outside doing something basically whatever else you are doing as well and not just during periods when there is an outage.

Reality is that there is stop loss in many exchanges and you end up using that for spending time outside of crypto doing whatever you want without problem and that is how you end up getting better, you can be asleep, you can be doing whatever you want, there is zero worry, why? Because you can do whatever you want but that stop loss is there to protect your money for you.

Stop loss really helps in cutting loses when there is a massive dump in the market, stop loss is really essential if a trader isn't active to watch the trade closely, if a trader enters a trade the sets his stop loss and Maybe gets busy with something else then the market moves in the opposite direction and gets to his stop loss point immediately the stop loss will eventually cut the loss and close the trade. But it's better not to use stop loss if you are active and also got enough equity, most time when prices hits our stop loss after a little dump then a massive pump will occur, so its better if you got equity then no need for stop loss and also know the coin you trade with, make sure to trade with coin with good potentials.

You do not have to do anything, stop loss is stop loss and you would be fine. I can't believe the people that do not use it, it is one of the best things that could be used, it would allow you to get out of a big dump and you would either buy again from lower, or just stay out if you want to.

I used to have a stop loss that was closer to whatever current price was, but I have made good enough profit that bitcoin could be 20k and I would be still in profit so I have changed my stop loss to 20k, so now it would be quite difficult for me to lose money and that is why I am not "using" it per se, but it is still there. If am using it such a low amount and unlikely situation, everyone should be using it, you have to have bitcoin for free to not care about where it will go down or will go up, if you didn't get it for free it wouldn't really matter.

That does seem like a really good way to put it for a holder, but I would still adjust the stop loss to below 20k because it is very possible we will go down below that like every past ATH, where the old ATH does become the floor but not before being broken several times, which 20k has not yet,,,

Do you have a take profit limit as well?

Well, that is true and that is one of the reasons behind those red wicks down that you often see on trading pairs, that and someone selling in large are responsible for huge decrease in price whether it's just temporary or it's going to continue bringing the price down.

Market makers often even count for stop-losses when they're going to decide when and how much the price should go down or even up, since many people these days use bots for trading which automatically places stop-orders when picks up a trade, it happens often that market makers push the price down just merely to make those bots trigger to sell so that they buy in those low ranges with their open orders.

Reality happened, those manipulators bring the value down placing those traders who uses bot to lose their money,  a lots of

traders suffered from this kind of actions but it's really tough to predict how dip the price will go down as not even a good signal

indicators can accurately detect the actual value when the market are bot hyping and falling, most of the time, traders are being

forced to setup stop and loss only to find out that the bounce will happen  after triggering your position.

Most new traders are not interested in using stoploss because they do not know much about it. Proper use of Stoploss can save you from huge losses which creates another opportunity for you to buy those coins from the market at a lower price.

But in some cases, you may have another regret for using stoploss, because many times it is seen that the coin that you bought has hit the price at which you set stoploss and pumped again. By doing this you will miss a big kind of profit and will create a regret.

The influence of stop during massive dump is so unappreciated, cause it helps a trader not to Lose all the money whenever there's a flash crash in price, only noob traders would trade without using a stop loss, after a few losses during my first time trading I started using stop loss and so far I no longer lose too much just maybe 1—4% of my initial capital would in that trading, it's always important to set a stop loss whether you are a day trader or a swing trader stop loss will help save your portfolio.

Sometimes stop loss orders will fail if the market crashes too fast and exchanges fall into superb lags. Stop market orders are helpful to trigger the stop loss orders and if you set that order type appropriately, your position will have more time to be filled in crash market.

The gap between stop loss and stop market orders need to be not too small to have effects.

Anyway, with any type of orders, you should set price for your orders at different price, to increase probability to be filled up all.

Stop loss is never useless, there is a reason why there is stop loss and it describes itself already.
Some people and their greediness, that’s what makes them feel like stop loss is useless.
Just because you used stop loss for once and then you ended up missing a little opportunity doesn’t mean it is useless.

There are times like you have said, when the loss will be too much, but those who are making use of the stop loss feature will have their ass saved from too many losses, but those who don’t have it on will lose way more. That’s just how it is, there will always be both sides, and you just have to know how to use it properly.

Yes, sell stop-loss orders decrease the price more but sometimes they are necessary especially when you trade BTC and expect that a huge dump is coming soon. In all other cases it’s easier to use simple limit orders when you intend to buy on low and to sell on high.

Well, that's supply and demand 101. That's why some traders focus on stop-hunting and it's true not only for cryptos but for every asset: Forex, Stocks, … Indeed a triggered stop order does influence the price even more, the less liquidity is in the particular market.

Nevertheless: stops might get triggered and turn around at very that spot … That's the reality of trading.  Review your trades and check if you might position your stops too close to a significant area (support/resistance area, trendline, …) and if you can safely widen the stop without increasing your risk too much for your next trades. But my rule #1: never open a position without a stop and my rule #2: when a trade is active, I'm only allowed to narrow a stop, but never, never, never ever widen the stop.