Although the process of rebalancing is unique for everyone, ShrimpyApp in their post on hackernoon.com explains two most common strategies.
• Periodic rebalancing
This is a very simple strategy that says investors to rebalance their pies by fixed time periods (for instance, once per 24 hours or once a week). For their clients, Shrimpy suggests rebalancing each day as market fluctuations are huge in the world of crypto.
• Rebalancing based on allocation
This method suggests redistributing your funds if your current pie chart changes dramatically. The base of this strategy is the idea that if your desirable position of a coin’s share (for instance, 25% of the whole portfolio) differs more than N% (for instance, it is more than 30% or less than 20%) in your real-time portfolio, you should rebalance it to initial proportion. The drawback of this method is that sometimes cryptocurrencies behave crazy and usage of this strategy obliges you to rebalance too often (what leads to extraordinary high commissions).