Rebalancing

The process of periodically adjusting a portfolio's asset allocation back to its target percentages by selling overweight positions and buying underweight ones. For example, if a target allocation is 60% BTC / 40% ETH but market movements shift it to 75% BTC / 25% ETH, rebalancing involves selling some BTC and buying ETH. This enforces a disciplined 'sell high, buy low' approach and can be done on a time-based (monthly, quarterly) or threshold-based (when drift exceeds 5-10%) schedule.