I just finished learning about what hedging is and want to share it with everyone because it’s quite useful in crypto trading.

Actually, hedging is pretty simple — it’s when you open two opposite positions at the same time, one long and one short. This method helps you minimize risk when you’re not sure which direction the market will go.

For example, if you see the price is quite high and want to short but aren’t 100% sure, you can open a short position first and then open a smaller long position. That way, if the price continues to rise, the long position will offset the loss on the short. Conversely, if the price drops, you can close both positions at the same time and still make a profit from the short, although smaller than if you had only shorted.

The same applies if you want to go long when the price is too low — just reverse the process, open a large long and a smaller short.

What’s great about hedging that people often overlook — you can still do regular DCA on one of the two positions. And in rare lucky cases, both positions will be profitable at the same time, allowing you to earn compound gains.

Turning it on is very easy, just close all current positions, go to settings, and enable the hedge mode. I find this technique quite useful for those who are still hesitant about the market’s direction.