You might have heard that one of the exciting features of our soon-to-be-launched Thematics is rebalancing. But what is rebalancing, and how will it be implemented?
To take a deep dive into rebalancing, make sure you check out our crypto portfolio rebalancing article. For a simple overview, keep scrolling!
Rebalancing involves buying and selling your assets to maintain the desired ratio between those assets. In Thematics, the way it will work is:
- Each thematic is a bundle of crypto assets, and each of those cryptos makes up a set portion of the bundle.
- As those cryptos’ prices change over time, their weighting in the thematic will change. To maintain the original ratios, or portions, the SwissBorg app will automatically buy and sell those assets.
The benefits of this approach include maintaining diversification, taking advantage of price fluctuations, empowering you to remove your emotions from your investing, and being forced to take profit when certain assets’ prices rise.
Check out our infographic to see how this works!