In new finance, “hodling” refers to buying and holding a digital asset such as bitcoin with the intention to benefit from an increase in its value over the long-term as cryptocurrency adoption grows. For years, “hodling” bitcoin investors have been rewarded with exuberant returns on their investment. Since the start of the year, however, bitcoin “hodlers” have witnessed their investment taking a beating. A combination of actively-managed and passively-managed is most likely the right approach for most investors. Adding to your bitcoin holdings at the lows, selling some at the highs, and staying net long would likely be the most user-friendly and potentially profitable approach to investing in bitcoin. Moreover, buying and holding is the only rational approach in an asset as volatile as Bitcoin, where trying to time the market is nearly impossible. But, Hodlers can’t just sit idle: To maximize their risk-adjusted returns and maintain a reasonable portfolio, they need to systematically rebalance their portfolio over time. The rebalancing function forces investors to sell high and buy low, keeping portfolio allocations in check.