Questions tagged [diversified crypto portfolio]

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Daniele Daniele Thu Jul 18 2024 | 5 answers 1061

Why should I rebalance my diversified crypto portfolio?

Why should I prioritize rebalancing my diversified crypto portfolio? As a crypto investor, I understand the importance of diversification, but I'm curious about the benefits of actively rebalancing my holdings. Isn't it better to simply let my investments grow and adjust my allocation over time based on market performance? Or is there a strategic reason why rebalancing can enhance the long-term returns of my portfolio, especially in the volatile world of cryptocurrencies? I'd like to understand the potential advantages and disadvantages of this approach.

Why should I rebalance my diversified crypto portfolio?

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