The Importance of Rebalancing

  • Rebalancing a portfolio is the process of changing the weightings of Digital Assets in an investment portfolio.
  • To rebalance a portfolio, an individual buys or sells assets to reach their desired portfolio composition.
  • As the values of Digital Assets fluctuate, inevitably the original asset mix will change due to the differing returns of the Digital Assets. This will change the risk profile of your portfolio.
  • Things obviously get more complicated when you hold more than just two coins or care about parameters other than equal weights. Even strategies that sound relatively simple — like investing in the top ten tokens by market cap — require constantly tracking information on the state of the market and your holdings, and then executing as many trades as it takes to rebalance in response.

Intro

What Is Rebalancing?

Why is rebalancing your portfolio important?

1. Helps maintain the original asset mix

2. Better risk management

3. Useful in implementing changes in investment strategy

How to do Portfolio Rebalancing?

Do It Yourself (DIY)…

…Or with SAIEVE

Conclusion

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