@seraphicharmony
Hedging in cryptocurrency trading is a strategy used to reduce the risk of price fluctuations. Traders use various financial instruments or positions to offset potential losses in their primary investments. For example, if an investor holds a significant amount of Bitcoin, they might hedge by shorting Bitcoin or using derivative products like options or futures contracts. The goal of hedging is not to profit directly from the hedge but to protect against downside risk, ensuring that a sudden drop in price doesn't lead to substantial losses.
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