💫 How to be a millionaire in 3 years?
Chapter 1: The Beginning of Accumulation
Level 1: ⭐
— The path to financial freedom begins with Automatic Portfolio Rebalancing. [◽]
Before we start talking about "automating" any investment strategy, we must first learn what it is and how Portfolio Rebalancing works.
So very well, let's begin...
What is the Best Investment Strategy?
It's an excellent question because it's a goal that all traders and investors share.
Today I want to introduce you to a new concept — a completely different way of thinking about investments — more sophisticated, less stressful, and professional-grade.
This article is the beginning of a series that can lead you, with discipline and time, to the top alongside billionaires in the next 5 years.
The Strategy that Traders Ignore
Most people seek 'the next big opportunity,' but very few understand that true wealth comes from maintaining balance. That is the foundation of Portfolio Rebalancing.
It's not a trend, nor an empty promise.
It's a method that great investors have been using for decades and, when applied correctly to the crypto world, can change your financial destiny forever.
📌 Before continuing, let's define our investment environment:
💰 Initial investment: $10,000 USD
🪙 Number of assets: 10
📊 Deviation rate: 2 %
This means that each asset starts with $1,000 USD and that if any deviates more than 2% from the overall balance, the bot will automatically adjust by selling or buying to maintain the proportion.
What is Portfolio Rebalancing?
Imagine a portfolio with 10 solid assets, no memecoins or speculation. Every time one rises or falls too much compared to the others, the system sells a small part of the asset that rose and buys from the one that fell.
In this way, you sell high and buy low, taking advantage of volatility instead of fearing it.
🔼 Practical example:
Balance sheet: $10,000 USD
Number of assets: 10
Deviation rate: 2 %
🔸Positive Deviation Rate
If an asset rises by 20% and goes from $1,000 to $1,200, the excess of $200 represents a positive deviation rate of 2%. The bot will sell $200 of that asset.
🔹Negative Deviation Rate
If another asset falls by 20% and stays at $800, that represents a negative deviation rate of 2%. The bot will buy $200 of that asset.
Thus, your portfolio remains balanced, capitalizing on every market fluctuation.
Volatility is your Ally
Many fear volatility. But we turn it into fuel.
Each price fluctuation activates small rebalancings that increase the total number of assets in your portfolio. The more cycles you experience, the more you accumulate.
Structural Value vs. Nominal Value
Here is the key that separates the average trader from the true investor:
• Nominal value: the dollar value (rises and falls all the time).
• Structural value: the amount of assets you own (remains and grows).
What makes you a millionaire is not the momentary price but the constant accumulation of scarce assets.
Think about this: if you own 1 oil well today and 10 in 3 years, what really makes you rich?
—Exactly: the wells, not the barrel price.
The Accumulation Cycle
Over the years, your bot will intelligently buy and sell. Each rebalancing increases your structural base and prepares you for the next market impulse.
When the next big bull cycle arrives, your portfolio will skyrocket — not because you guessed the price, but because you built structural value while everyone else continued to sleep... 😴💤
🧩 Final Words
Explaining rebalancing is easy. Making you truly understand it is not so much. That's why I wrote this article: to be the first chapter of a series where you will learn to:
Select the best assets.
Create diversified and balanced portfolios.
Leverage volatility as a motor for continuous accumulation.
Now, thank you for being part of my community. Get ready, because what comes next will change your way of investing forever.
Cheers and success in your trades! 🙏😔
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