Recently discovered a very interesting trading idea—using BTC to go long and ETH to go short, which in the community is called coin-based arbitrage or pair trading.

Compared to the previous Dogecoin grid trading, this strategy is indeed an upgraded version. Why do I say that? Dogecoin and similar altcoins are highly volatile with deep retracements. When encountering a one-sided market, the grid's extreme points are easily triggered for liquidation. On the other hand, BTC and ETH, as the top two market caps, have a very high correlation, ample market liquidity, and are actually more stable.

The logic behind this pair trading is to leverage the correlation between the two leading cryptocurrencies—when market sentiment fluctuates, they usually move in the same direction, but with different magnitudes and rhythms. By combining one long and one short position, it can hedge against large directional risks while capturing subtle price differences. Compared to simply betting on the rise or fall of a single coin, this approach is more flexible and less likely to get caught in a one-sided market.