Phase 3

Dan Hollings explains what Phase 3 is all about.

Phase 3 = Rebalancing has been around a long time. It's just like doing grids has really been around a long time. It's just that as it moves into crypto, it takes on a new meaning. It requires new strategies and it has to be done differently. And that's the part that I've figured out.

So let's start with that. If you have any type of an investment like in a mutual fund or what have you. Believe me, it is already being rebalanced. That's the way they're able to give you a bit better return than perhaps you're getting than just a savings account. So nothing new here. Been around decades, but in crypto, rebalancing works like this.

Rebalancing basically lets you take a number of tokens or coins and put them in a portfolio. Let's say you're really interested in sports tokens just as an example. That's like a category within crypto land. You could go and invest or put in a portfolio, the top coins in that category, and then you kind of let them fight it out on their own.

That's what rebalancing does. If any one of these sports tokens takes off without you doing anything at all, the rebalancing strategy will grab the profits from the one that moons and buy more of those that have yet to moon. And it does it on a periodic basis so that you're always catching the moonshot. You're always catching the increases.

Sometimes they're very incremental increases, and they will grab the profits from the winners and buy the ones that are temporarily down and then when the others go up, it'll grab the profit from that and buy the others. And it keeps rebalancing that portfolio over and over and over again. And here's the bottom line. And perhaps I can show it to you in a bit.

But the bottom line is that you have to compare it to something, right? So here's how you would compare it if you were to set up that same portfolio and just hodl it. Just hold it. It would produce a certain return, if you were to take that exact portfolio and put it into this phase three rebalancing system, you will get 2x 3x 4x huge increase over just straight hodling.

And that's the advantage that you get from rebalancing.