Rebalancing vs. HODL — Which Strategy Drives Higher Crypto Portfolio Returns?
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Rebalancing vs. HODL — Which Strategy Drives Higher Crypto Portfolio Returns?Portfolio rebalancing is a strategy that has been used by investors for decades. Many are adopting this approach when looking after their crypto portfolio’s. This article provides a comparison of how rebalancing performs when compared to holding.Getting StartedTo begin with a rebalancing strategy, an investor must first determine how much of their portfolio they want to allocate to each asset. In the case of cryptocurrencies, each asset would be a coin. These allocations are simply the percent of each coin that should be represented in the total value of the combined portfolio. When it is time to rebalance the portfolio, the coins are traded such that the value held in each asset is once again equal to the (...)