DYOR always goes on, and you have to always be active and vigilant about your portfolio. Things change quickly in the world of crypto, and a single wave of FUD (fear, uncertainty and doubt) is enough to leave you exposed. Investors must always stay informed about the project milestones, changes or additions, announcements and external threats from competing projects, changes to the team and other connected topics.
Investopedia is a valuable resource for early-stage crypto research to understand basic definitions and terms. It is a great source of news and discussions about anything related to crypto. For DYOR purposes, r/Cryptocurrency is a vital tool to get first-hand insights into various blockchain projects. Many projects, even small ones, are being actively discussed on the website. CoinGecko cannot compete with CoinMarketCap in terms of the sheer volume and variety of market intelligence provided.
Regularly review your investments and stay informed about changes in the market. However, the large and established VCs all use in-house analysts who specialise in finding and vetting crypto projects. As such, when a project receives backing from a big investor, that’s usually https://www.xcritical.com/ a good sign. Swipe to discover and invest in high-quality Web3 projects, follow other investors in the space and make better investments, faster. Many complex concepts from the world of crypto and blockchain are explained in easy-to-digest layman terms on the website.
Never stick to one information source, no matter how drawn you are to the channel. Have at least three go-to sources on YouTube, this helps with variety, a lot of very useful and actionable tips, and a much better understanding of how the market works. If https://www.xcritical.com/blog/how-to-do-your-own-research-dyor-before-investing-in-crypto/ you want to follow websites, stick to the most popular ones, with large followings on all social media channels, as you are most likely to get quality information there. Check the comment sections, what are the opinions of followers regarding the news.
You can use a website like Honeypots.is to help you detect honeypot scams using the asset’s contract address. To use this tool, visit the website, input the asset’s contract address in the search bar and click the ‘Is it Honeypot? For example, if you have some questions about the project’s outlook or technology, this is a great place to ask. A responsive team, willing to answer your questions and concerns, is what you’d expect from a genuine project with diligent founders. On the other hand, questions that go unanswered, or a central team that is totally unresponsive might suggest a project with no vision, or worse still, a scam. It is another acronym of the investment industry which describes investors’ rush to buy.
As more miners join the network, the hash rate increases and the coins become harder to mine; however, the network becomes more secure and decentralized. As an investor, the network usage and security can be evaluated using hash rate data. Transaction value differs from trading volumes as these are the transactions tracked on the blockchain. Certain analytical tools like blockchain explorers can collate these transactions and record them in set periods like 24 hours, 2 days, and so on, while providing a graph to illustrate the trends. At a glance, an investor can evaluate how active the project is through the number of unique transactions and how they have improved over time. In this instance, a good way to estimate how much a cryptocurrency project’s technology and token are gaining traction is through looking at its on-chain metrics.
After a while, you will always find a source you most likely trust the most and always go to them first for information, but never make them your only source. One way or another, you are bound to make a bad investment decision if you do. No one is right all the time, and no matter how pure the intentions, they will be wrong from time to time. Ethereum saw massive adoption due to its vibrant developer community, building all manner of dApps (decentralized apps) and Dexes (decentralized exchanges) projects on the Blockchain. The acronym of Do Your Own Research — encouraging investors to complete due diligence into a project before investing. DYOR.net is not a magic tool that will make you rich by telling you what currencies you have to buy.
CoinMarketCap is owned by a leading crypto exchange, while CoinGecko has no such affiliation. For some people, it is enough reason to trust CoinGecko data more than they trust CoinMarketCap’s figures. Naturally, it is largely a matter of personal opinion, and CoinMarketCap has rarely been inaccurate in the provision of market data. Crypto meetups are a way to be part of vibrant communities and feel the pulse of a project. When communities built around a project regularly host meetups and events to talk about the growth and future of a project, it is always a good sign.
But it’s not all bad – you also have endless resources at your fingertips for doing your own research. If you don’t research, you will likely trust the wrong source and lose your investment. Any promotion is worth investigating, but only some of them are real, good opportunities. Many scams are hard to spot, especially if the scammers are experienced. The crypto world offers excellent opportunities to earn money — if you play your cards right.
The project rewards its community members and actively fosters an engaged network of holders. DYOR is committed to promoting education, inclusivity, and growth in the crypto world. Knowing the importance of this data to investors, shady cryptocurrency projects have devised a means to create fake volume and liquidity for their assets. Honeypot projects create fake buy and sell orders to trick investors into believing that the asset can be easily bought and sold.
These case studies highlight the importance of DYOR in identifying promising cryptocurrencies before they become widely recognized. They also underscore the need to understand the technology and use case of a cryptocurrency, rather than basing investment decisions solely on price trends or market hype. Remember, successful DYOR involves thorough research, critical analysis, and a long-term perspective on the potential of a cryptocurrency. Cryptocurrencies are more than just digital assets; they are underpinned by complex technologies like blockchain and cryptography.