Last updated on January 24th, 2023 at 01:06 pm
DYOR is something you’ve heard before and will hear again in the crypto industry. The most important thing you can do to become a good cryptocurrency trader is to invest the time and effort necessary to comprehend your cryptocurrency trades. However, what exactly does “doing your own research” involve? How do you start? What sources do you believe? And how much study is sufficient? But things aren’t always so simple, so Platincoin has provided this guide to assist you while you conduct your study.
What is DYOR?
Table of Contents
Do Your Research, or DYOR, is an abbreviation that strongly encourages crypto newcomers to learn on their own and not (always) rely on others. The crypto community is pushing for DYOR to safeguard novice investors looking for sound investments but fall victim to being shilled by seasoned investors looking to pad their wallets.
How to DYOR?
Investments in different crypto options should be viewed similarly: with skepticism and doubt unless you’re persuaded otherwise. People conduct their research on cryptocurrency primarily to select the best cryptocurrencies to invest in. Platincoin explains the most successful ways to conduct such a study.
Start with the socials
What would you do if you met someone on a dating app? Monitor their social media for warning signs. Naturally, you’d want to confirm that they are who they say they are on their profile. Crypto enthusiasts should apply this dating strategy while researching new coins.
Being the first to invest in cryptocurrency is crucial, which is why Twitter is so helpful. With Twitter, you can read real-time updates and the most recent news from initiatives and exchanges.
Reddit is another significant public crypto forum that allows you to ask questions and receive immediate responses from actual people. Also, the upvoting system for comments allows you to gain useful insider information about a project.
Check their whitepaper
Most cryptocurrency initiatives publish a whitepaper explaining their mission, strategy, and roadmap. This document is often available on a project’s official website. A good whitepaper should be simple to read and comprehend, as whitepapers created by fraudulent projects may contain a lot of jargon.
Analyze
It is time to firmly establish the value of analysis now that we are discussing the study of potential investments. Platincoin points out that there are two types of crypto analysis: Technical analysis (TA) and Fundamental analysis (FA):
Technical Analysis (TA)
Technical analysis includes:
- Staring at charts.
- Searching for candle patterns.
- Checking indicators.
- Testing new trading techniques.
Fundamental Analysis (FA)
Fundamental analysis includes reviewing business procedures, whitepapers, roadmaps, development, marketing plans, teams, tokenomics, network activity, etc. This kind of analysis is also used to ascertain the fair market value of an asset.
Conclusion
Platincoin believes that the basic idea of DYOR is to extend your perspective by using a range of tools and sources (news, social media, YouTube, community forums, etc.). You will feel more confident in your ability to form your own opinion on a subject the more viewpoints and media you engage with.
These factors should be considered when evaluating a potential cryptocurrency investment: utility and use-case, community, team, market cap, website, white paper, competition, roadmap and vision, trading volume and liquidity, and circulating supply vs. total supply.
