Putting a "hedge" in place would mean taking a position that offsets the direction of your investment. For example, two blockchain assets that aren't related and that might move inverse of one another like ETH and BTC (a few months ago they did this, now both are going up together so it's not the best example anymore). It keeps your portfolio from making drastic changes in either direction. If you were to only invest in lets say Ethereum and other ERC20 tokens , the momentum for all of those is generally in the same direction since they are related. You would probably want to invest in another asset type that follows a different direction. Essentially, you want to diversify your portfolio and not put all of your eggs in one basket.