This is one of the strategies that I use, it is a very widespread strategy in traditional finance and it basically consists of assigning a proportion to each asset within the investment portfolio. When the value of one of the assets exceeds the allowable percentage composition of that asset, the excess is sold and the assets that have decreased their proportion are bought, again unbalancing the portfolio. It is an interesting strategy that allows me to manage my portfolio without exposing myself so much to market risks. Personally, the proportion that I give to each asset is a function of its market capitalization, and I see it as a long-term strategy, so I am not constantly buying and selling. I usually do a quarterly analysis and based on this I do the necessary rebalancing. The asset selection criteria for this strategy is the same that I use to buy all my crypto assets: solid cryptocurrencies with a long history and use value, which is the criterion that best suits my needs and my tolerance for risk. One of the exchanges that KUCOIN uses recently incorporated the Rebalance bot where the client can choose different strategies. I have not been able to use them yet because I do not know if the money invested is returned to me in the chosen cryptocurrencies or in USDT. I am also waiting for a better opportunity to enter the market. I will tell you in another post. Remember this is not financial advice, it is only the strategies I have to achieve my financial freedom. Thank you very much for reading me and always keep the will to make your dreams come true.
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This text was published in Spanish on my Ecency blog
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