It’s been a while since cryptocurrencies became a part of mainstream investment portfolios. Even the biggest skeptics these days own crypto to secure their financial features and while there are multiple ways of managing a portfolio, HODLing is typically the safest.
However, you can’t buy one and forget about it. Just like any other market, crypto assets go up and down in price all the time. That’s why it’s important to rebalance your assets to maximize profit potential in the long run. SwissBorg Thematics could be a unique way to dispatch this task to experts. If you’re not familiar with the brand, you can read this SwissBorg exchange review right here.
Let’s explore the features of Thematics in a little more detail to understand what you can expect.
What is SwissBorg Thematics?
A “theme” in the traditional definition is “the subject of a talk, piece of writing, exhibition, etc.”. SwissBorg Thematics cleverly incorporates the concept in crypto investments by managing your assets according to a theme.
There are two major components of this product. The Golden Thematic and the Web3 Thematic.
Golden Thematic is the simpler approach for most investors, offering a safe way to manage their investments while extracting as much value as possible. It works by simply investing in Bitcoin and swapping it with Gold as the price fluctuates. SwissBorg labels it as capturing the full power of Bitcoin with the resilience of Gold on autopilot.
The Web3 Thematic is slightly different, where it swaps BTC with Web3 tokens to factor in price trends. The company calls it the SwissBorg bundle. It started with 13 of the top Web3 tokens with an ambition to expand as time goes by.
The best part of SwissBorg Thematics is that as an investor, you don’t have to lift a finger. You leave the complicated matters of portfolio rebalancing and asset reallocation to the experts. Of course, you have access to your assets, and you’re free to move them as you see fit. But even if you don’t have the time, SwissBorg experts will keep the cogs oiled for you.
What is Portfolio Rebalancing?
Portfolio rebalancing is a strategy used in investment and asset management to maintain a desired risk level and asset allocation within a portfolio. In other words, you buy and sell assets based on their risk levels to protect your portfolio as well as grow it.
It’s important because, over time, the values of different asset classes can change at different rates. This is due to market fluctuations triggered by fundamental events. For example, if stocks perform well, they may become a larger portion of your portfolio than you originally intended as part of the rebalancing efforts.
It helps you stay on track with your long-term financial goals and objectives, as well as manages risk by preventing your portfolio from becoming too heavily weighted in a single asset class. If that happens, the asset becomes prone to volatility, something you don’t want for long-term investments.
Rebalancing also forces you to sell assets that have performed well (selling high) and buy assets that have been underperforming at the moment (buying low). In case you didn’t know, buying low and selling high is the core principle of any investment.
How often rebalancing occurs can vary depending on the overall investment strategy. Some investors rebalance annually, while others do it quarterly or in response to significant market movements. SwissBorg makes it completely dynamic where the system responds to market conditions.
Last but not least, SwissBorg ensures proper governance for your assets. The team of experts is always scouring the market for fundamental news regarding the tokens. Any bad signs and SwissBorg will replace that asset with something safer.
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