A zero-sum strategy refers to a situation in trading where one participant’s gain is exactly equal to another participant’s loss. In this scenario, the total value remains constant; hence, the term “zero-sum.” For every profit made by one trader, another trader incurs an equal loss, resulting in no net benefit to the overall market.In cryptocurrencies, this often occurs during speculative trading. Traders buy and sell assets hoping to capitalize on price fluctuations. If one trader successfully predicts a price rise and sells at a profit, the trader who bought at a higher price incurs a loss when they sell later at a lower price.This mindset can lead to increased volatility, as many traders focus solely on winning against each other rather than investing for long-term growth. Consequently, while some can profit significantly, many others may face substantial losses, emphasizing the competitive nature of trading in crypto assets. Understanding this concept helps participants be more aware of the risks involved in speculative trading.