What is Portfolio Rebalancing?

Cryptocurrency portfolio rebalancing is adjusting the proportions of different cryptocurrencies to maintain your desired asset allocation. This can be done manually or automatically, depending on the tools and strategies you use. The idea behind rebalancing is to bring your portfolio back to its target allocation by selling off assets that have grown disproportionately and buying more of those that have become underweight. This helps to reduce risk by ensuring that your portfolio remains diversified and does not become too heavily…