In my trading strategy, the best thing is the Rebalancing Bot, but I stayed away from it before because its minimum required amount was $4000 and on that time I had no that amount to trigger this strategy.
Meaning, for 0.5% threshold, you needed to invest at least $4000 which is too mch.
But recently when I checked, I became very happy because now the minimum investment is only $200. That means, on every 0.5% move, the bot will trade for you, and you will keep getting profit based on 0.5%.
Many people may be thinking, what is this Rebalancing Bot? It is a bot made inside the Binance exchange which does conversion (trading) for you according to your selected settings. All you need is to give instruction and the bot will continue to trade for you.
It will keeps your portfolio balanced. For example:
You set a Rebalancing Bot on Binance:
Pair: BTC/USDT
Allocation: 50% BTC / 50% USDT
Rebalance Trigger: 0.5% deviation
If the BTC price moves so much that your portfolio becomes 55% BTC / 45% USDT, then the bot will automatically sell some BTC and buy USDT, so that it becomes 50/50 again.
You can choose any threshold: 0.5%, 1%, 2%, 5%, 10%, and so on. For example, if you choose the minimum 0.5%, then every 0.5% move will rebalance your portfolio and the profit from conversion will keep getting added to your account.
This is a very great strategy for those investors who want to hold crypto for the long term. For example, I am holding HIVE, and I want that until it reaches $1, I donโt want to sell.
So in such a case, I can use the Rebalancing Bot, by selecting the BTC/HIVE pair. I will stay invested all the time, and I will keep getting small passive income every hour.
I hope I have given correct information about the Rebalancing Bot.
Still, if there is any confusion, you can ask in the comment section.
I hope you find this post interesting and I hope you will like it. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.
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