Rebalancing for young investors with a small budget
I'm 28 and invest £200-300 every month in crypto. My portfolio is already worth £8k, but Bitcoin makes up 70% of it because it's grown so much. I want to learn how to rebalance in order to diversify, but I am afraid of commissions and taxes. How can I do this effectively with small amounts without significant losses?
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See this useful material on basic portfolio rebalancing with BTC as the core: https://impactwealth.org/crypto-portfolio-basics-rebalancing-with-btc/ . With small amounts, it is best to rebalance with new contributions — when you add money, distribute it so as to return to the target proportions (for example, 60% BTC, 25% ETH, 15% others). If you need to sell, do so infrequently, once every six months, and only on exchanges with low commissions (Binance, Bybit). Taxes are minimised if you don't trade often.