Hedging in markets refers to the act of protecting one's investment from potential losses by investing in a second negatively correlated asset or going short on a positively correlated asset. This strategy is often used when the market is volatile, and it can help to reduce the risk of losses if the market drops. In order to hedge, a crypto trader might buy or sell a different cryptocurrency or a stablecoin. This will help to offset any potential losses from the first asset with profits from the second asset.