For decades investors have used the portfolio rebalancing strategy to eliminate unprofitable assets while maintaining the highly profitable. In the crypto world, these decisions are based on the token or coin values at a particular time.Crypto portfolio rebalancing is a strategy used by crypto-asset owners to apportion their tokens to maximize their value and returns. Portfolio rebalancing gives you the opportunity of increasing your earning by taking advantage of price fluctuations. Investment decision-making in the crypto world is highly dependent on how right the holder is at analyzing assets.What rebalancing strategies exist in the crypto world? This article looks at these strategies and more modern automated features provided on Shrimpy.Periodic Portfolio RebalancingThis strategy is also known as time-based portfolio rebalancing. Periodic\/time-based portfolio rebalancing is where you fix a time interval in which you will be rebalancing your portfolio. Since the crypto world is a 24\/7 highly volatile economy, you might need to be rebalancing on an hourly, daily, or weekly basis. Periodic rebalancing only takes into account the time factor in crypto rebalancing.Frequent rebalance in the crypto world can boost returns. In other traditional financial systems, even longer time rebalancing such as annual ones will earn you profits.Threshold RebalancingThreshold rebalancing is a technique that allows a crypto holder to rebalance their portfolio only when it matters. Unlike the periodic strategy, which focuses on the time factor, this strategy checks on the deviation of the asset value. The strategy uses a concept of allocation deviation strategy to determine how much assets have deviated from the target allocation. Therefore, it calls for rebalancing only when the asset\u2019s value has deviated from the target by a minimum predetermined threshold: 20%, 30%, or 10%.Different platforms use different ways of determining the portfolio rebalance. However, when considering the platform to use, you should check on\u2026<\/p>","protected":false},"excerpt":{"rendered":"
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