Here is my discussion regarding Coinbase Doesn’t Have a Trailing Stop. Even though Coinbase makes an effort to offer many professional trading features, they still do not have this important aspect; that is, the ability for a trader to change their stop losses as the market moves in their favor is non-existent. We will analyze the implications of this constraint and suggest some ways to work around it when managing trades.
What Is a Trailing Stop?
A trailing stop is an order used by investors and traders to manage profits by minimizing losses and automatically adjusting the stop-loss level as price of an asset improves.
Unlike a fixed stop-loss order, a trailing stop ‘trails’ the market price by a certain amount or percentage.
If the price of the asset goes up, the stop-loss amount increases subsequently offering protection for profits.
If the price goes down, the trailing stop is left at the highest amount reached to prevent heavy losses. By using this method, traders are able to take their profits while still having the possibility for further profits.
Coinbase Doesn’t Have a Trailing Stop
Coinbase does not currently have a trailing stop function. Although Coinbase has many sophisticated trading tools like limit orders, stop-limit orders, and bracket orders, holders of accounts on the platform will not find a standalone trailing stop feature.
Many traders that require trailing stop functionality often turn to other exchanges or third-party applications that work with the Coinbase API to automate their trade management in a more granular way.
Workarounds for Using Trailing Stops with Coinbase
Utilize the trailing stops with Coinbase using the following methods:
Third-Party Tools: With tools like Bitkick.io, which automatically connects with Coinbase Pro, trailing stops can be utilized.
Other Exchanges: Consider other exchanges which have trailing stop functions such as Binance, Kraken, and Bittrex.
Manual Monitoring: Manually supervise your trades and modify the stop-loss orders accordingly as the price adjusts in your favor.
Trading Bots: Bots that enable trailing stops can also be integrated with the Coinbase API.
Brokerage Accounts: Use your brokerage accounts which allows trailing stops and links with Coinbase for easier trades.
Alternatives to Coinbase for Trailing Stops
Binance
One of the top trading platforms well-known for its highly liquid markets and its extensive list of available cryptocurrencies. East and West block citizens, both novice and expert traders, have access to wide ranging trading features like trailing stop orders.
Kraken
The only exchange which is known for incorporating advanced security, has cryptos tradeable with interfaces. They also have basic features like trailing stops which makes this platform flexible enough for trade management.
Bitget
The platform supports trailing stops which are crucial for security purposes making it easy for traders to control risk. The platform provides an easy to use interface as well as other vital trading features.
CoinSpot
A platform suitable for Australian traders. The platform is equipped with a number of features like a trailing stop order and low fees, along with an intuitive user interface allowing for easier trading.
StormGain
Popular in the UK, StormGain has trailing stop features which help manage trades. The platform is ideal for beginners as it comes with a range of instructional materials.Alternatives to Coinbase for Trailing Stops
Conclusion
To sum up, even though Coinbase can try and compete with other exchanges by covering a wide variety of advanced tools for trading, it still does not support trailing stop orders.
This restriction may compel traders to look elsewhere or develop solutions to manage risks effectively. Thankfully, exchanges such as Binance, Kraken, and Bitget already have trailing stop functionality, and several other third party tools such as Bitkick.iocan are already compatible with Coinbase.
By using these tools, traders can achieve their trading objectives and allocate their investments more prudently even without native trailing stop support on Coinbase.
