Auto-rebalancing refers to an automated process that adjusts a portfolio’s asset allocation in response to changing values over time. In the context of investing in cryptocurrencies, it helps maintain a desired balance of different digital assets.When the value of certain cryptocurrencies fluctuates, the original allocation can become skewed. For example, if one asset increases significantly in value, it may represent a larger portion of the portfolio than intended. Auto-rebalancing automatically sells or buys assets to return to the target allocation.This approach can help manage risk and keep the investment aligned with a specific strategy. Rather than manually adjusting the portfolio, investors benefit from automated tools that help ensure more consistent performance. Auto-rebalancing can be programmed to occur at regular intervals or triggered by certain price thresholds, making it a practical solution for both novice and experienced investors looking to maintain their investment strategy with minimal effort.