Before we jump into all the numbers and start explaining how you can rebalance your crypto fund on the ICONOMI platform, and what happens in the background, let’s make sure we understand what rebalancing means.
Rebalancing is the process of realigning the weights of a portfolio of assets. In common English – determining how much of what goes into your Crypto Fund.
Here is a simple example: let’s say we create a Crypto Fund with 50% of BTC and 50% of ETH and invest 1,000 euros in it. This would mean that now, we have 500 euros in BTC and 500 euros in ETH. Now let’s say that in the following month, BTC goes up 8% and ETH 5%. We now have 540 euros worth of BTC and 525 euros worth of ETH. In other words, now our crypto fund consists of approximately 50.7% of BTC and 49.3% ETH.
If we would now realign the weights back to the original weights (50% BTC and 50% ETH), this would be an example of a rebalance.
ICONOMI makes this process very simple, since it has an interface design especially for that. All you need to do is write down new weightings, and we will take care of the rest.
Now let’s talk about the complex things that happen in the background so you will understand what happens once you click the ’submit’ button.
High tech behind the scenes
After writing down the new weights or adding new assets into your Crypto Fund, you will first submit the rebalance. Once that is done, ICONOMI will check the rebalance and confirm it within a few minutes. After that, our system will calculate which assets need to be bought and which need to be sold. In the next few seconds, our system will check the prices of those assets across all exchanges where we do trading, and start executing the orders to the exchange with the best price.
Better prices for everyone
Since a lot of trading is done via our platform, we enjoy lower trading fees at our partner exchanges. Since we don’t take any fee on top of what we pay, we save you money every time you trade. We get you better prices for the assets you are trading, as well as save you money on trading fees. How cool is that? 😎
Now that you understand what happens in the background when you are rebalancing your Crypto Fund, let’s show you some cool features that are going to save you a lot of time.
Handy shortcuts for a faster rebalance
First of all, you can find three cool shortcuts in the bottom left corner (see the picture below).
By clicking on the first one (‘Clear all’), you will remove all the weights as shown on the picture above. This comes in handy if you are creating a new structure, add a ton of new assets, but then change your mind and want to start from scratch.
Copy last rebalance
The second one is the ‘Copy last rebalance’ feature, which will copy the weights you input at your last rebalance. This is great for indexes or Crypto Funds with predefined rules and comes especially handy if you have a lot of assets in your Crypto Fund. Instead of clicking on each and every one of them and copying the old weights, you can do all that with just one click.
Finally, you can copy your current index weight. This is useful in case you want to make slight changes to your crypto fund. Let’s say you want to replace one asset with a new one or remove it from your portfolio, and also add to your BTC position while keeping other assets untouched. In this case, this feature will be a life-saver and enable you to complete a rebalance in a matter of a few clicks.
Save as draft
Another cool feature is also the fact that you can save the rebalance for later. In order to do that, simply click the ‘Save as draft’ button (see picture below).
Last but not least, if you click the ‘Preview’ button, you can see the changes that will take place and review which cryptocurrencies you will be buying and selling.
Now that you are equipped with all the knowledge you need in order to rebalance your Crypto Fund, login into the platform and test things yourself.