An auto-rebalancing wallet is a type of investment tool designed to maintain a specific asset allocation automatically. It often holds multiple cryptocurrencies or tokens and adjusts them periodically based on predetermined parameters.When the value of one asset rises or falls significantly, the wallet rebalances by selling some of the overperforming assets and buying underperforming ones. This helps in maintaining the desired balance, reducing risk, and seeking consistent returns over time.Users benefit from this system as it takes the manual effort out of portfolio management. Auto-rebalancing can be particularly useful in a volatile market, ensuring that investments remain aligned with the user’s risk tolerance and financial goals.Some platforms offer this feature as part of their service, allowing users to set parameters and let the wallet manage their assets efficiently.