Diversification vs Rebalancing

Quick comparison to help you distinguish these two crypto terms.

Diversification
beginner
strategy

Diversification is the practice of spreading investments across multiple different cryptocurrencies or asset classes to reduce the risk that any single asset's decline damages your entire portfolio.

Read full definition
Rebalancing
intermediate
strategy

Rebalancing is the process of buying or selling assets within your portfolio to restore your intended allocation percentages after market movements have caused them to drift.

Read full definition
Browse full glossaryGet platform access