How often should I rebalance my cryptocurrency holdings?

Rebalancing frequency depends on your strategy and market conditions. Most investors rebalance quarterly or semi-annually to maintain their target allocation. For example, if you planned 60% Bitcoin and 40% altcoins, price movements might shift this to 70% and 30%, triggering a rebalance back to your goal. Active traders may rebalance monthly or weekly, while long-term holders might rebalance annually. Key factors include your risk tolerance, portfolio size, and transaction fees. More frequent rebalancing can help manage risk but increases costs. Less frequent rebalancing requires less monitoring. Consider setting threshold levels—like rebalancing when allocations drift 5-10% from targets—rather than following strict schedules. This balanced approach helps maintain your intended risk level without excessive trading.