Rebalancing a pension savings portfolio
I am 45 years old and actively saving for retirement through cryptocurrency and stocks, but Bitcoin sometimes rises to 60% of my portfolio and sometimes falls to 20%. I want to understand how to rebalance correctly so that I don't sell at the peak and buy at the bottom, but maintain a stable proportion. Is it worth doing this quarterly, and is it really possible to protect savings from volatility this way?
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Here is a practical guide to rebalancing your crypto portfolio with a focus on BTC as the basis: https://impactwealth.org/crypto-portfolio-basics-rebalancing-with-btc/ . I rebalance once a quarter or when BTC deviates more than 10% from the target weight (for example, 50% BTC, 30% ETH, 20% stablecoins/altcoins). If BTC has risen, I sell part of it and buy undervalued assets; if it has fallen, I buy BTC at the expense of others. This reduces risk and automatically locks in profits. Over the past 3 years, thanks to rebalancing, my portfolio has performed 15-20% better than simply HODLing, with less drawdown.