lim (as x approaches infinity) (x^2-1)/(x^2+1)

How would you solve that by using algebra?
I can simplify the above because it is difference of squares. But then what about the bottom

just multipy numerator and denominator by 1/x^2

lim (x^2/x^2 -1/x^2)/(x^2/x^2+1/x^20=
lim (1-1/x^2)/(1+1/x^2)=1