While this outsourcing method could help save time and effort, you should note that you’re taking a risk on a third party to do due diligence for you. We’ll unpack how you can approach some of these questions in this article. The goal is to help you frame the research you complete, so you can make investment decisions that align with your values, goals, and risk appetite. The decentralized nature of the crypto world means that even the leading websites may not have perfectly accurate figures at all times. Thus, CoinGecko is a useful tool to cross-reference the accuracy and precision of key indicators such as market caps, token prices, rankings, or trading volumes listed at CoinMarketCap. CoinMarketCal is an online calendar of upcoming events at blockchain projects.
Finding a good online or in-person community will undoubtedly give you an advantage over other traders who are attempting to conquer the world of cryptocurrency from the comfort of their own homes. While there are plenty of insightful and trustworthy resources to learn from, one must evaluate and compare everything, making a final decision by himself. Does the team have industry connections or well-known partners that showcase their experience in the field? If not acknowledged on their website, a Google or LinkedIn search may reveal this. The level of financial returns promised by any given crypto project is most likely inversely proportional to its chances of success.
What is Dyor? How does Dyor work?
Understand what is DYOR, its importance, and provide a comprehensive guide on how to effectively conduct your own research. Spending hours on research is useless if your sources are not high-quality. It seems like everyone is talking about cryptocurrencies because it is such a hot topic in the investment world. For your investigation, you must use reputable information sources, or you will be wasting your time. However, DYOR is the only viable solution in a disruptive and extremely unpredictable industry like blockchain. Making money and protecting your money are not always simple tasks in the world of cryptocurrencies.
If a guy uses DYOR in a conversation with you, it’s best to interpret it as a reminder to do your own research and not blindly follow others’ advice. It’s important to consider multiple sources of information and form your own conclusions based on thorough research. If a girl uses DYOR in a conversation with you, it’s best to take it as a reminder to do your own research and not blindly follow others’ advice. In fact, technical analysis is always very difficult to do, even for experienced people. In DYOR, fundamental analysis is a very important step; it helps us accurately assess a project’s intrinsic value.
Understanding the Project’s Purpose and Use Case
TradingView is a social media platform for investors and aspiring investors to share their knowledge, opinions, and analysis on topics related to traditional finance as well as crypto investing. One of the key features of the platform is the great charts that community members contribute to the website. A coin or crypto project may have a good outlook from an average investor’s standpoint. As such, a good investor must look beyond a project’s surface-level information on its website or social media platforms and seek more details before investing money. You should not ignore the rest for one good factor before making an investment decision. Similarly, when there is a FUD (fear, uncertainty, and doubt), investors can panic sell based on the influence of commentators and investors on social media.
By researching these numbers, you can evaluate other investors’ and users’ activity over time. You can also combine these with elements such as roadmap milestones and marketing plans to get a broader perspective. The numbers surrounding the project and its digital asset can give investors a wealth of information. For instance, the project’s social media and community channel numbers could be a good indicator of how popular it is.
Ultimate List of Companies That Accept Bitcoin As A Payment Method
Rather than relying solely on others’ recommendations or opinions, DYOR encourages individuals to take responsibility for gathering relevant information and forming their own informed conclusions. Like CoinMarketCap, CoinGecko offers information on the market capitalizations, prices, and trading activity of a wide range of different coins and tokens. A good habit for traders and investors is to refer directly to the source of information and read the white paper of the project, concept paper, website, and other marketing materials. To increase product awareness, hype and discussion, some projects use various methods of “shilling” their digital assets. Many project managers resort to deliberately inflating or advertising the project through social networks and community channels.
From a project’s utility, you can understand its unique selling points, the problems it aims to solve, and why investors may be interested in it. If you’ve been in the crypto space for a while, you must have heard the slang DYOR or, in other cases, Do Your Own Research. The slang/phrase is common among crypto investors and is considered one of the most important aspects of crypto investing. If you are inexperienced in the market, then you should consider hiring professional financial advisors to get the right judgment, saving you time and effort. Howbeit, this is also risky because you are risking having a third party do the due diligence for you and you.
Analysis of social media channels
They can describe how project tokens will be distributed and what incentives exist to encourage community activity. Tokenomics can also contain interesting details such as founder and team attachments. The main reason for conducting research is the practice of responsible trade and disciplined thinking to minimize risk. Investing a large amount of money in a product without knowing anything about it would be akin to gambling. Let’s look at some of the main reasons why investors are encouraged to conduct their own studies. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price.
However, you can make informed decisions when you conduct DYOR before investing in any coin – no matter how popular it is. For example, when you have an in-depth understanding of a project, you know its potential and can infuse your knowledge of the general crypto market into your investment decisions. Remember to cross-check information from multiple sources to avoid potential biases or inaccuracies. Be wary of projects with insufficient information, unrealistic promises, or hidden agendas.
DYOR Tool 9: Projects’ Websites and Social Media Pages
It’s imperative that you align with the current market realities and understand new projects to up your DYOR game. Exchanges like eToro have expert guidance and investing tips to help beginners understand cryptocurrency investing. You will find a handful of tools, including copy trading, ProCharts, dedicated customer support, and expert trading advice to simplify your journey. Speak with more experienced traders, watch interviews and listen to podcasts from founders, and join a crypto community to build a more effective decision-making process. These information can also be technical documentation on GitHub or other external sources for users and developers. Altogether, the project’s technicalities will inform its investors and community on what to expect in its developmental phase and beyond.
- Coinmarketcap and Coingecko provide comprehensive data on thousands of cryptocurrencies.
- Another way to determine a solid crypto project worth investing in is by knowing its development team and advisors.
- Particularly in the world of cryptocurrency, not all recommendations are made equal.
- When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.
- If you’ve been in the crypto space for a while, you must have heard the slang DYOR or, in other cases, Do Your Own Research.
- A cryptocurrency without a white paper may be considered to raise a red flag.