Glossary terms related to Portfolio. View all terms
Portfolio rebalancing in crypto is the systematic strategy of periodically adjusting your holdings back to target allocation percentages by selling overweight positions and buying underweight ones. This disciplined approach forces you to take profits from winners (selling high), reduce concentration risk, and buy undervalued assets (buying low). Rebalancing prevents any single cryptocurrency from dominating your portfolio and automates the "buy low, sell high" principle without emotional decision-making. Most professionals rebalance quarterly or when positions exceed targets by 10%+.