Technical Definition
Rebalancing
Portfolio rebalancing is adjusting asset allocations back to target percentages.
By Crypto University Editorial
PortfolioDiversification
✦ Key Insight
It controls portfolio risk.
✕ Common Misconceptions
Never rebalancing
Rebalancing too frequently
Detailed Explanation
How It Works
Sell overweight assets and buy underweight ones.
FAQs
How often should I rebalance?
Many investors rebalance quarterly or annually.
In Practice
“BTC grows from 50% to 70%.
Sell some BTC to restore balance.”