I've got 10 units of $ETH and I'm worried it'll tank. I can hedge by selling 5 units of $ETH futures. If $ETH drops, the futures sale offsets the loss. But if $ETH rises, I'll miss out on the gain for those 5 units. It's a trade-off - LESS RISK means LESS POTENTIAL GAIN. Hedging's useful in uncertain markets like this. Hedging #Liquidity #RiskManagement