Profit Pro

Free Crypto Portfolio Rebalancing Calculator

Has market movement thrown your crypto portfolio out of whack? Use our simple rebalancing calculator to determine what trades you need to make to get back to your desired asset allocations.

Current Portfolio & Target Allocations

How to Use the Portfolio Rebalancer

  1. For each asset in your portfolio:
    • Enter the asset's name or symbol (e.g., BTC, ETH).
    • Enter the current total market value of your holdings for that asset (e.g., if you have 0.5 BTC worth $25,000, enter 25000).
    • Enter your desired target allocation for that asset as a percentage (e.g., 50 for 50%).
  2. Click "Add Asset" for each additional cryptocurrency in your portfolio. Use the "Remove" button if needed.
  3. Ensure your total target allocations add up to 100%. The calculator will alert you if they don't.
  4. Click "Calculate Rebalance."
  5. The tool will show you the total current value of your portfolio and a table indicating how much (in dollar value) you need to buy or sell of each asset to reach your target allocations.

Why Rebalance Your Crypto Portfolio?

Portfolio rebalancing is a strategy to manage risk and stick to your investment plan. Over time, as different assets perform differently, your portfolio's actual allocations can drift away from your desired targets.

  • Risk Management: Prevents over-concentration in assets that have performed exceptionally well, which might increase risk.
  • Locking in Profits: Involves selling some of the assets that have grown significantly and reinvesting in underperforming ones (or cash).
  • Disciplined Investing: Helps remove emotion from trading decisions by sticking to a predefined plan.
  • Maintaining Diversification: Ensures your portfolio remains diversified according to your strategy.

You might choose to rebalance on a schedule (e.g., quarterly) or when allocations drift by a certain percentage (e.g., +/- 5%).

Example Rebalancing Scenario

Imagine a simple portfolio:

  • Target: 50% BTC, 50% ETH
  • Current State due to market moves:
    • BTC: Current Value $6,000 (now 60% of portfolio)
    • ETH: Current Value $4,000 (now 40% of portfolio)
  • Total Portfolio Value: $10,000

To rebalance back to 50/50:

  • Target BTC Value: $10,000 * 50% = $5,000
  • Target ETH Value: $10,000 * 50% = $5,000

Actions:

  • Sell $1,000 worth of BTC (to go from $6,000 to $5,000).
  • Buy $1,000 worth of ETH (to go from $4,000 to $5,000).

The calculator will show these "Sell" and "Buy" amounts.

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