Diversification and rebalancing make your crypto investments more disciplined. This is a strategy that is used by investors. The investor must first decide how much of their portfolio they want to allocate to each asset.
During rebalancing, the coins are traded such that the value held in each asset is once again equal to the percentages that were originally specified. So in this article, you will become familiar with some portfolio rebalancing tools in crypto.
What are the benefits of using Portfolio Rebalancing Tools?
Before going too in-depth knowledge, let’s see the benefits of using portfolio rebalancing tools.
- You risk level decreases
- Different percentage of your portfolio will be kept for different categories of assets
- You will get results as per your expectations
- Rebalancing provides an opportunity to potentially boost the “holding” investments
- Utilize the advantages in rapid market fluctuations
- Rebalancing allows the portfolio to get a positive gain
4 Best Crypto Portfolio Rebalancing Tools
Shrimpy is the largest application that manages around 120k trades per day. The API allows users to connect all major exchanges such as Binance, Bittrex, KuCoin, etc.
These help in tradings by allowing their customers to set up a strategy for trading crypto, to trade cryptocurrency automatically such as with trading bots. Users can also backtest their strategies by using older data which is collected directly from each individual cryptocurrency exchange connecting to Shrimpy.
Holderlab is one of the most popular crypto portfolio rebalancing platforms that you can use as a paid tool. You can use Holderlab’s backtesting tool for free.
There is also an option to set your own strategy or to use a pre-defined strategy. Once you complete the backtesting of your own strategy, you can put your desired rebalancing weightage, and start rebalancing your crypto portfolio.
3Commas is a platform that allows its users to automate crypto trade for free, unlike Holderlab. The platform does test trading before running a strategy and automates rebalancing. But this is available for Junior plan and only on Huobi Global and if the deposit is less t less than $750.
If you want to conduct unlimited tradings using simple bots and personal signals TradingView, then you have to pay $35 per month. By using the 3Commas platform, you can even follow and copy a portfolio from a successful investor and you can then set this to re-balancing as per your strategies.
Multi Token allows the distribution of deposits to a multitude of tokens in any proportion and put into a MultiToken smart contract. This platform does rebalancing through smart contracts. You can choose either automatic rebalancing or manual rebalancing. This decentralized platform makes rebalancing by combining all assets into one multi-token. This creates the safest place to store your cryptocurrencies.
The above given are the 4 best among the existing crypto portfolio rebalancing tools. You can select them according to your requirements, goals, and expectations. We hope that this article has given enough information for you about the portfolio rebalancing tools that help to manage your portfolio better.