DYOR: How to ‘Do Your Own Research’ Before Investing in Crypto Projects

They are still subject to much volatility, but they often maintain a steady price. The next step is to check social media platforms and see what experts and influencers say about your preferred cryptos. However, ensure that the people you seek advice from are unbiased and have nothing to gain personally from your investment decisions. You can also join a crypto community to meet investors having the same interest as you.

You should know that these influencers or traders are often paid to get traction for particular cryptos to fund the project, regardless of how viable it is. While not every crypto influencer’s post may lack authenticity, it is hard to distinguish the real from the fake one. Thus, it is of utmost importance to do your own research.

Visit the project’s community groups on Telegram or WhatsApp. A relatively quiet and small community can be a red flag. Research also shows that people learning about topics are vulnerable to hubris. Consider a 2015 study by one of us and the psychologists Stav Atir and Emily Rosenzweig. Analysis comes in all shapes and forms, so stick with what you do best. Create your own indicator using Pine script or stare at a cryptocurrency’s chart until you find a meaningful connection.

Network effects – The Terra protocol has a number of network effects to support its growth. Firstly, it’s integrated with the Cosmos ecosystem so is incredibly easy to use by dApps there. Furthermore, it’s building bridges to all the popular layer 1 protocols. Secondly, Terra can be used to create stablecoins in many different currencies, not only USD. Finally, Terra is the most popular decentralised protocol and this gives users easy access to liquidity.

Finally, you will receive a free multi-coin wallet to store all of your coins when you trade on our crypto exchange. If you’ve decided that a cryptocurrency is worth investing in, it’s time to make your move. There are many investment strategies that could make sense. Investors could dollar-cost average into a position expecting to ride out the waves, make an initial investment only, or trade daily. The important thing is to take action and follow the investment strategy that is right for you and your investment goals. Stablecoins are widely held at the start of bear markets as investors go to risk-off positions, indicating that demand will be stickier than other projects.

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People researching crypto and blockchain projects should use multiple tools, common tools include CoinGecko, CoinMarketCap, Investopedia and social media. Many auditors, such as Certik, Hacken and Quantstamp review the code of blockchain projects before launch to ensure their security. These audits involve double-checking the code and testing it for vulnerabilities, which results in the funds within the application being much safer than a non-audited smart contract. Looking up the audit report of projects before investing is a sure way to build confidence in a project. DYOR is a well-known acronym in the crypto and blockchain space.

Do Your Own Research (DYOR)

Below are some points you can include for your DYOR in the cryptos checklist. A whitepaper is a document containing the beginning-to-end prospects of a cryptocurrency. It tells you why the crypto started, why it is being issued, the roadmap ahead, and the growth prospects. Thus, it is a must to go through the whitepaper before investing in cryptocurrencies. You can not miss out on social media analysis while DYOR in crypto. The base step of this analysis includes evaluating the crypto project’s website.

They may start out appropriately humble, but they can quickly become unreasonably confident after just a small amount of exposure to the subject. Researchers have called this phenomenon the beginner’s bubble. After you sign up and connect your first exchange account, you’ll deploy an investment-maximizing strategy in as few as 5-minutes. There is always a day where you can learn something new or master trading purely through practice. In an ideal world, beginners of any subject would have access to an universal handbook that dictates how a sector works and how to participate in it.


Many projects seek out to receive audits from leading firms such as CertiKand PeckShield. These firms boast expertise in smart contract proficiency and offer services to check the code. However, you came across your new token or coin of interest, always check the coin’s social media. The best investor is one who is best equipped for success.

  • Don’t invest your rent money, grocery money, or college tuition.
  • You can also join a crypto community to meet investors having the same interest as you.
  • The first step to DYOR is identifying potential investment options.
  • Create your own indicator using Pine script or stare at a cryptocurrency’s chart until you find a meaningful connection.
  • Reddit forums, BitcoinTalk, Discord and Twitter started seeing plenty of new faces discussing Bitcoin, Ethereum, and Ripple.

Beware of speculation around what a project can o as fear, uncertainty, and doubt can be pervasive. You will find many familiar terms from economics and other sciences, but not all terms are interchangeable. Much of the same tools and strategies of traditional investing are well suited for success in DeFi. There are key fundamentals to understanding how to begin doing research in crypto. Every crypto user should use these basics for investigating and researching new cryptos.

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But when it comes to a disruptive and highly innovative industry such as blockchain, there is really no other way than to DYOR. Allow us to refer you to the best crypto influencers in the space of Telegram and Twitter. Do not assume people https://xcritical.com/ who contact you randomly are whom they say they are. The tools covered above are the key to solid research and due diligence. Each of them serves a somewhat different purpose, but used together, they will help you carry out effective DYOR.

Additionally, you can find audits — if provided — along with GitHub activity, social follower counts, a list of wallets supporting the asset, and more. The term first became popular during a wave ofICO projects that flooded into the cryptocurrency space between 2016 and 2018. Many investors were left duped or out of pocket by a host of scams entering the market as potential get-rich-quick crowdfunding schemes.

Kenali Apa itu DYOR dalam Crypto dan Cara Menerapkannya

Still, most people disagree about exactly which crypto protocols are going to have the biggest impact over the long term. That means there’s still a huge opportunity for investors who can pick the right projects. As the number of blockchains continues to grow, the tokens and coins population will proliferate as well.

Do Your Own Research (DYOR)

Additionally, it includes researching and evaluating the overall crypto industry and competitors to get a thorough idea of the viability of the crypto to make an investment decision. The term “DYOR” can also act as a disclaimer when crypto traders or experts share their thoughts, recommendation, or research on social media platforms. By adding the phrase, the writer expects you to verify the information on the post, and not to take it as direct investment advice. This is a way of mitigating potential liabilities on their part, such as if a coin they discuss turns out to be a scam. His quest of finding a good asset begins by searching, rather than researching.

How To: Do Your Own Research (DYOR) in Crypto.

Although there are no quarterly earnings reports like in the traditional financial system, there are key metrics to help you invest. Also, checking the metrics makes it easy to compare different cryptocurrencies. Before making financial commitments to a project, it is important to determine whether a single individual or an established firm backs the project with capital and other resources.

It might come as a surprise, but many people do not know how to properly learn. They memorize unnecessary information, never bother to test a process or experiment, fail researching past surface-level information, and overall never grasp the core meaning of a subject. If relying on the word of others, you are more likely to be deceived. Sure, a person might help you out by revealing his in-depth knowledge of a highly bullish altcoin but that is not the case most of the time. Instead, Bob will buy someone’s bags and end up with a project that is, in the worst case, not even being actively developed.

DYOR Tool 9: Projects’ Websites and Social Media Pages

Many platforms allow customizable accounts and interfaces to help make the DeFi experience more accessible and individual. While fundamental analysis tells you the worth of cryptos, technical analysis provides you with the strategy you will require to enter the market. It includes analyzing the price movements of the crypto you are looking to invest in, comparing it, and finding trends to know when to enter and exit the trade. You can conduct technical analysis by evaluating crypto price charts, reading trends, indicators, candlestick patterns, and more. The fundamental analysis goes to the core of understanding how much a crypto is actually worth and whether it will survive in the crypto market.

DYOR means that people are encouraged to conduct due diligence and gather all the necessary information on projects before depositing any funds, especially for new projects. Adequate research protects new and existing crypto enthusiasts from scams and projects with no real value. By “doing your own research,” members of the crypto community can find viable blockchain projects and avoid fraudulent or deceptive ones.

Twitter Space Synopsis — Best Practices & Experiences on DYOR & Due Diligence

Shilling is when a person or group of people aggressively promotes a crypto project to generate excitement and bring in investments. They drive the token’s market value up before the issues with the project come to light and the project’s value plummets. These projects often pay celebrities or dyor meaning crypto influencers to back the project and lend an air of credibility to the short-lived scam. This resource is great for accessing customized analysis carried out by the platform’s users into various crypto assets. Many users contribute excellent technical analysis on cryptocurrencies and tokens.

Staying Safe: 5 Articles on Crypto Scams and Security

A lower low is when the price of a cryptocurrency closes lower than the previous day, which itself closed a… The phrase has now permeated into popular culture, and is widely used to encourage amateur investors in any arena to navigate a minefield of misinformation. Terra has secured billions of dollars of value so far and has proven secure. It’s important that the protocol continues to hold its peg to fiat currencies throughout difficult market conditions.

Rob (@RobCardano) shares that he is leery of exchanges that offer the “other services,” for instance the APY earnings on deposited bitcoin offered by Celsius. He emphasizes that this is where we tend to be tempted into trouble. Julia shares her metaphor of central exchanges as a necessary bridge between tradfi and defi / crypto. @bone_pool adds that the lesson from FTX crash, and other similar events, is that there is no need to trust centralized exchanges or services with our funds. Julia Froenicke (@JuliaSteinmull1) — Background in TradFi as a financial consultant & analyst. Julia is accustomed to the high level of regulation found in TradFi.

Abigail Martínez

Licenciada en Ciencia Política y Relaciones Internacionales por el CIDE (Centro de Investigación y Docencia Económicas) y Maestra en Políticas Públicas por Macquarie University. Se especializa en análisis político y comunicación estratégica. Colaboradora de The HuffPost México, Gluc MX y ENEUSmx.

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