A Guide to do your own Research DYOR for Crypto Trading

If the team is anonymous, or only shares first names and Twitter profiles, you’ll need to tread carefully. It’s also good to see how big the supporting team is, whether they have any notable strategic partners or investors, and where they’re based. With the help of fundamental analysis users are capable of reaching conclusions as to whether a project is undervalued or overvalued, as well as how it fares against rival projects. Since the process is incredibly extensive and requires a lot of research, investors can only rely on DYOR. TA is essentially the study of statistical trends, collected from historical price and volume data, in order to identify profitable trades.

do your own research crypto

In addition, you can look for information about the team members on their official website to find out whether they have used their real names. You can also learn about their previous experience from social media and other sources. DYOR is closely connected with fundamental analysis, i.e., using multiple methods to figure out the prospect of a project. For project research, it is crucial to gradually develop your own framework through study and practice. Generally speaking, a project can be judged from at least the following perspectives. As the crypto market is in such a mess, is it possible to rely solely on opinion leaders or recommendations by others to make a decision?

The point is to see what the masses are attracted to – what coins they will likely invest in. Avoid falling victim to fear of missing out, better known as FOMO in the crypto community. FOMO can be brought on by a number of things such as hype induced by influencers and groups of people, limited quantities, and pumping floor prices. Even if you see the floor of an NFT project steadily rising, or a cryptocurrency blasting off, it’s always best to make sure you do thorough research before committing to anything. Ultimately, cryptocurrency worth investing in should provide some sort of value or aim to solve a problem that the creator of the currency has deemed an issue. Let’s be honest, any legitimate cryptocurrency project will have members of their team listed publicly as well as any partner organizations who support the development of the project.

As I mentioned with LunarCrush you shouldn’t be relaying on just one of these tools and not even only those mentioned in these lists. There’re tons more useful tools and doing research also includes looking at the project site, including reading the complete whitepaper. These tools are just meant to enhance the analysis and using them in combination which each other makes them more powerful. Naturally, you have a higher chance of picking the right investment if five sites give you a buy impression rather than just one giving that. Also, these sites listed here are in no particular order since all of them are good with different use cases.

DYOR stands for Do Your Own Research and it represents a powerful acronym that urges newcomers to learn on their own and not to (always) rely on others. Creating a diverse crypto portfolio can help minimise risk and hedge the volatility of the crypto market, supporting a balance between safe and speculative investments. The world of crypto can be daunting if you’re just getting started. While this is to be expected, we cannot stress how valuable advice, investing tips and expert guidance can be for new investors.

By understanding the real value of an asset, investors can better judge if there’s potential for its market value to increase. Never rush into an investment you don’t understand, and realise that there will always be another great opportunity if you are putting in the time into understanding the crypto markets. Be curious about projects and get interested https://www.xcritical.in/ in the tech and the space in general. Want some highly active chat groups where people are diving deep into specific coins and niche crypto topics? The Telegram messaging platform is good when it comes to updates, community forums, trends and market sentiment analysis. Discord does something similar, and has a passionate crypto community.

  • After reading this guide, you will be able to execute this strategy and get a better overview of the characteristics that can increase a coin’s price.
  • In addition, some tactics used by bad actors in the crypto space are designed to prey on inexperienced investors — or those who haven’t conducted disciplined research.
  • The acronym of Do Your Own Research — encouraging investors to complete due diligence into a project before investing.
  • Anyone can post events and they then get voted on whether they’re legit or not.

Despite the potential cost LunrCrush is a great tool but there’s a one other thing I want to warn you about. While this is a place where you could find tradable assets and maybe even hidden gems there are a lot of scams. You should be aware that many meme projects use lots of bots and money to grow the awareness around their project.

do your own research crypto

Here we will look at a couple of areas where thorough research could help avoid a bad investment. Market sentiment, for example, can cause traders to get into an asset out of FOMO (fear of missing out). When the market is going up, some investors can be caught up in the hype, buying based on the fear of missing an opportunity. Without thorough research, investors are more likely to incur financial losses after buying assets at elevated rates. All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice.

The answer is no.The internet is full of misinformation and disinformation, some of which may even be malicious propaganda. People may lose their rationality due to strong FOMO emotions. Therefore, users must do their own research and judge the reliability of information so as to make decisions wisely. The platform claims to use technologies such as so-called “trading bots” and “volatility trading software”, so they can provide extremely high returns of 1% per day. BitConnect also offered referral commissions to existing investors who referred new investors to the lending program. To do this, one must analyze on-chain metrics such as transaction count, transaction value, hash rate, transaction fees, staked amount, status, and active addresses.

The cursory DYOR signoff below their promotion merely serves as a disclaimer that alleviates any responsibility from the shiller. There’s then a lengthy explanation saturated with unnecessarily technical language, which is finally followed by a tiny disclaimer and the ever-present DYOR. And on the face of it, promoters and shills encouraging their followers to do their own research is a step in the right direction (or it should be at least). Unfortunately, the ways in which some of these promoters use DYOR is less than legitimate. Programmable privacy redefines data protection in decentralized applications (dApps), offering a flexible c…

Once an investor can read price charts and understand volume data they can start to look for patterns which can help them anticipate future price movements. For example, a bullish pennant pattern, where an initial upward move is followed by a period of consolidation with lower highs and higher lows, can indicate another upward dyor meaning move is coming. Established news outlets are a great place to look to see if your prospective projects have made any headlines. Some of the most reputable news outlets include Coin Desk, Coin Telegraph, Bitcoin Magazine, NewsBTC and Crypto-News.net. Have a quick look at the charts to see how it has been performing recently.

do your own research crypto

For that reason, always remember to invest only what you can afford to lose. I personally check the transaction volumes of my favorite coins only on Binance and Kraken, since these are the two places where I have an account. Checking all ten will likely give more in-depth insights, but takes a longer time.

This part will depend on your preferred source, but if you want to have someone explain it to you simply, give the project a search in YouTube and see if any reputable channels have covered it. From there you might want to search the project in Twitter to see if there have been any recent or significant developments. If there is another similar project that is better or more established, there may be no room for your prospective cryptocurrency to succeed.

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