I just learned a cool technique in crypto trading—what hedging is and how it works. Actually, it’s quite simple, but it’s very useful when the market is uncertain.

So what is hedging? Basically, it means opening two opposite positions at the same time—both long and short. For example, when you think the price is already high and you feel it’s about to drop, you want to short, but you’re not 100% sure about which direction it will go. In that case, instead of going all-in on a short, you can open a short with a large volume and then open an additional long with a smaller volume. This approach helps you reduce risk.

If the price keeps going up, your long position will offset the loss from the short, so the loss won’t be too big. If the price reverses downward, you close both positions—then the profit from the short will cover the loss from the long, and you’re still profitable, even if not by much. Similarly, when you see the price is too low and you want to go long, you do the opposite: a small short and a large long.

The great thing about hedging is that you can still DCA normally for one of the two positions without any impact. And in some fortunate cases, both positions end up making money—then you get double gains, which feels pretty nice.

Turning it on is also very convenient. Just close all open positions, go to settings, and enable the hedge mode. I find this technique quite useful during times when the market is just hovering and you don’t know where it’s headed.