“Vampire” Main-Sub Coin Hedge (Dominance Pair Trading)



Logic: Use two cryptocurrencies with extremely strong correlation but diverging fundamentals.

Operation: For example, go long the SOL contract during an ecosystem boom, while shorting an equally sized amount of the same-sector coin with mediocre performance.

Profit point: You earn the “strength difference” between the two coins, fully hedging away the market-wide BTC volatility risk.
‍$BTC
$ETH
ETH-1.94%
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