Rebalancing
In short
Rebalancing regularly restores a portfolio's planned weights: what rose gets trimmed, what fell gets topped up — systematic instead of emotional.
The effect: automatic "sell high, buy low" and controlled risk when one coin explodes and suddenly dominates the portfolio. Common rhythms: quarterly or beyond a defined drift.
Doesn't rebalancing waste fees and taxes?
It costs — so work with thresholds (e.g. ±20% drift) instead of rigid dates and know your country's tax rules.
Related terms
Information, not investment advice. More of this? The newsletter.