Cryptocurrency prices can go up and down very quickly! Imagine a rollercoaster – that's what it can be like. But there's a smart way to invest called pairs trading. It's like comparing two coins that usually move together.
Instead of guessing which coin will go up, pairs trading looks at how two coins act *compared* to each other. If one coin gets too expensive compared to the other, you sell the expensive one and buy the cheaper one. When they go back to their usual relationship, you make money!
This works even if the whole market goes up or down.
- Pairs trading uses math to find coins that usually move together.
- It helps reduce risk by not relying on just one coin's price.
- It's good for both big investors and people just starting out.
| Item | Information |
|---|---|
| Pairs Trading Goal | Make money even when prices are changing wildly |
| How it Works | Compare two coins; buy low, sell high (relative to each other) |
| Important Note | This is not financial advice; talk to a grown-up before investing. |
