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November 27, 2024 at 5:36 PM
Note:
This is a basic strategy and doesn’t account for BTC, overall market conditions, or asset classes.

How do you rebalance your portfolios? Share your strategies in the comments! 💬
November 26, 2024 at 5:51 AM
Rules for rebalancing:

✅ Don’t exit an asset entirely.

Selling all XLM might seem logical, but it’s risky—XLM could continue to rise. It’s better to leave a portion invested.

✅ Time it right.

Start taking profit when the growth exceeds 70-100%.
November 26, 2024 at 5:51 AM
- Cost averaging:

Buying assets at their lows helps lower their average cost and increases profitability when they recover.

- Risk management:

Rebalancing maintains balance between assets, reducing the over-reliance on any one asset in the portfolio.
November 26, 2024 at 5:51 AM
Why do this?

- Profit-taking:

XLM has already grown by 200%, so its growth potential is decreasing. Meanwhile, ALT is just starting its journey.

For example, today XLM dropped by 3%, while ALT rose by 13%. This shows our rebalancing worked, making the money work more efficiently.
November 26, 2024 at 5:51 AM
Example:

You have XLM in your portfolio, which has grown by 200% since purchase. And you also have AltLayer (ALT), which hasn’t performed yet but is estimated to have greater potential.

💡 What do we do?-
Sell part of XLM and buy ALT.
November 26, 2024 at 5:51 AM
What is portfolio rebalancing?

It’s the process of redistributing assets to optimize their structure. The idea is to take profit from assets that have grown significantly and invest in those that have dropped in value, helping to average down costs and enhance the portfolio’s long-term potential.
November 26, 2024 at 5:51 AM