A zero-sum mechanic refers to a situation where one participant’s gain is exactly balanced by another participant’s loss. In this type of scenario, the total wealth or value remains constant, meaning that any profit one person makes comes at the expense of someone else.In cryptocurrency trading, many speculative activities exhibit this behavior. For example, if two traders are betting on the price movement of a particular coin, the profits of one trader when the price rises represent the losses of the other trader who bet against it. This mechanic can create intense competition and volatility, as participants try to outsmart or outmaneuver each other. Unlike traditional investments in growing assets, where overall value can increase, zero-sum situations are about relative performance among players, not collective gains. Understanding this concept is crucial for anyone participating in trades, as it highlights the risks associated with trying to outperform others in a fixed-value environment.