Dear Plutus Wallet followers,
Now that we’ve covered the functionality of Pie Management and Pie Allocation, it’s time to talk about another important element – Rebalancing.
What is a rebalance?
Cryptocurrency portfolio rebalancing is one of the essential strategies used by investors. Why is that and how does cryptocurrency rebalancing work? Let’s find out.
As exchange rates fluctuate, the initial target allocations set for the cryptocurrency Coins within your Pie will shift. This may result in a Pie that no longer aligns with your investment strategies and expected results. Rebalancing the cryptocurrency will bring the actual allocations of the Pie back to the targets you have set.
How to use rebalance in Plutus Wallet?
Plutus Wallet allows you to rebalance crypto manually with a tap of a button or through enabling the auto function in the Management screen to automatically rebalance every hour or every 24 hours.
Advantages of cryptocurrency Rebalancing
Rebalancing allows taking advantages of rapid exchange rates fluctuations. When one of your Coins experiences strong gains, crypto rebalancing will distribute those gains among the other Coins within your cryptocurrency Pie. This way your Pie will show growth over this period, even if the Coin returns to its original rate.
Now you know the basics of how cryptocurrency portfolio rebalancing works. Use it wisely, and you will achieve your goals!
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