Portfolio Rebalancing
Calculate trades to hit your target allocation
Your Portfolio
| Asset | Current ($) | Target % | Current % | Drift | |
|---|---|---|---|---|---|
| Total | $0 | 0% | 100% | 0% |
Add assets to your portfolio
Trades Needed
Calculate to see required trades
Before vs After
Calendar-Based
Rebalance on a fixed schedule (monthly, quarterly). Simple but may miss big moves or trade unnecessarily.
Threshold-Based
Only rebalance when drift exceeds threshold (5-10%). More efficient, adapts to market conditions.
Cash Flow-Based
Use new deposits to buy underweight assets. Avoids selling and taxes. Best if you regularly add funds.
Rebalancing FAQ
My BTC is 70% of portfolio now - problem?
Depends on your target. If it was 50%, you're overexposed to BTC risk. Good if BTC moons, bad if it crashes. Rebalancing locks in gains.
Isn't selling winners a mistake?
Feels wrong but it's disciplined. You're selling high, buying low. Studies show rebalanced portfolios often outperform over time.
What about gas fees on small trades?
Valid concern. Set a minimum trade size (e.g., $100). If rebalance trade is smaller, skip it. On L2s or CEXs, fees are minimal.
Can I rebalance inside a tax-advantaged account?
If you hold crypto in an IRA (some allow it), yes - no tax on trades. Otherwise, every sell is a taxable event.
Should stablecoins be in my allocation?
Yes! A 10-20% stable allocation acts like cash. Lets you buy dips without selling. Reduces overall volatility.
Rebalance across multiple wallets?
Sum all holdings first. Then decide where to trade. May involve transfers. Consider each wallet's security level too.
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