Trading Volume and Liquidity- You can get most of these charts and data from reputable crypto-focused websites, which we will discuss below. This article is intended for crypto investors and the crypto curious—with a breakdown of all the important things to consider. If you enjoyed this piece, the credit goes to Yusuf! He’s also a programmer who loves to build stuff and write about it. A long-time cryptocurrency enthusiast, he’s usually tinkering with one protocol or the other, or coding up something fun. We’re working on a robo-advisor that can make recommendations on the crypto assets it thinks you should buy that are tailored to your portfolio and allocation settings.

DYOR importance

On Reddit, you can talk to crypto enthusiasts and have your questions answered in no time. You can easily find out how active the community is on forums, how many followers there are on the coin’s sub-Reddit, and how the project interacts with the community. Tokenomics refers to all the qualities of a token that makes it appealing to traders and potential investors. The tokenomics is usually described in the project’s Whitepaper. It should help to understand the token functionality, objective, allocation policy, and more. Any factor that concerns the value of a crypto token should be taken into account when considering its tokenomics.

The supply of tokens in a project is very important. A high allocation of tokens to internal team members or investors makes the token vulnerable to a few large holders and highly centralized. Unlocking dates is also a very important thing to consider. If unlocking is accelerated, it makes the tokens susceptible to large dumps during unlock ”, which almost always drives the prices of a token down.

Pay attention to the longevity of the project and their plans for the next couple of years. Sticking to your own plan is good, but it also should be flexible. We don’t live in the ideal world where all goes according to the plan – sometimes it is better to not hesitate and make a strong-willed decision when the time comes.

All You Need To Know About Cryptocurrency Transaction Fees

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. Celebrity involvement in projects can be a good and a bad thing. It is good for the project because it brings it to the mainstream and introduces it to a large audience. Always start by following the official channel and group of the project you are interested in.

Another thing worth taking a look at is the project’s smart contract or source code. You can use an appropriate blockchain explorer like Etherscan to view a project’s smart contract code or check their official Github repository for their source code. Good sources for this sort of information include aggregator sites like Coinmarketcap and Coingecko. You should also find related information in the project’s whitepaper and official website. A crypto project’s mission and approach are usually explained in-depth in a technical document known as a whitepaper. This document, though technical, usually contains all the information you might want to know about a project.

Doing Your Research In A Crypto World

You get a lot of the info in real-time, and you can use hashtags and search functions to follow the latest trends. Time is everything in crypto, and the earlier you are in on a project, the better the returns. Look at the charts to see how it has been performing recently. A high-level view will give you a rough idea of its risk-reward. The lower the market cap, the more speculative it is generally.

DYOR importance

Telegram and Discord have a clear advantage; they are the best places to actively be part of a community. First of all, check official social media platforms and the official website of the project as you can learn most of this information there. You can also find all the necessary information about founders and developers on their LinkedIn profiles.

How To Do Your Own Research Dyor With Bullperks

If they have a solid following, they have a lot more to lose for spreading bad info so they usually spread legit ones. DYOR involves using different sources and social channels to give you a more informed opinion and perspective on a project you’re interested in. The more opinions and mediums you engage with, the more confident you will feel in coming to your own conclusion.

What are the incentives to buy, hold, stake and lock the token? The more the incentives , the higher the chances of growth. A good way to also gauge adoption is how incentivized developers and builders are to come to the project and build there.

While many successful projects have been started by anonymous founders , proceed with extra caution as they are also the perfect model for scams. DYOR is an acronym for “Do Your Own Research” and is possibly the most important dogma in the cryptocurrency world. The meaning is that you should never trust an ICO-project team or anyone else without first verifying any statements made Do Your Own Research In Crypto with your own research. Additionally, you can find audits — if provided — along with GitHub activity, social follower counts, a list of wallets supporting the asset, and more. This does not mean both are mutually exclusive; projects with genuine potential will definitely have websites that work and are designed well. Pay particular attention to the admins and how they behave.

5 Tools Every Crypto Investor Should Use For Research – CNBCTV18

5 Tools Every Crypto Investor Should Use For Research.

Posted: Thu, 29 Sep 2022 09:17:00 GMT [source]

Ride along as we explore the nitty gritty of cryptocurrency research. Your BLP tokens will be sent to the address you provided during the Airdrop. While doing your own research, you should always look for a roadmap, and compare it to what has been already delivered and achieved. An alternative blockchain used by developers for testing.

How Hedgehog Can Help You With Crypto Research

The white paper should give a comprehensive explanation of the project, its purpose, utility, future prospects and underlying technology, which all good projects will go into in detail. If 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. A lot of people, websites, and channels pose as trusted sources for crypto news these days, and it sometimes becomes overwhelming when you have to filter through endless sources. Everyone, including those with dubious credentials, always seems to have an opinion, so it is important to choose your choices carefully in crypto.

DYOR importance

Remember – it takes time to build your knowledge and there is always some form of risk involved.

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Let’s determine the word “project” as some beginner investors often misunderstand it. Crypto projects and cryptocurrencies are not the same. Even Ethereum, which many confuse with cryptocurrency, is actually a cryptocurrency project. In other words, when you buy Ethereum, you acquire a naïve Ethereum cryptocurrency.

This online news and social networking site is full of crypto enthusiasts with different opinions. Many tend to promote their tokens and crypto projects to increase the hype around them. Twitter is also one of the best places to contact media personalities and crypto experts directly. Finally, it is extremely easy to search for new tweets on tokens you are interested in.

A lot of this information has an element of bias in it and may not necessarily give you the broad perspective you need to make an informed decision. Tokenomics is very important, and you need to understand the unique tokenomics of a coin before you consider investing. However, research, especially in the crypto world is never really straightforward.

The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. The next thing to do is to explore social media platforms. Cryptocurrency is extremely time-sensitive, so social media is the best place to continue your thorough research. Other tools on CoinMarketCap platform to explore include the educational platformAlexandria, thelisting of exchanges,NFTs, and theGravity feature. Although Gravity is still in beta, it offers a constantly updating feed of project news, articles, and user sentiment. There is also a handy list of accounts you may be interested in following to stay up-to-date on those projects.

DYOR importance

The higher the volatility, the higher the risk and lower predictability. Cryptocurrencies are incredibly volatile due to their demand. It is important to remember that if prices start to go up, they will eventually come down, and there are no specific rules regarding price change. It all depends on the supply and demand, investors’, government regulations, and media hype.

Unfortunately, many scam projects falsely claim that they are backed by well-known and influential individuals in the crypto industry. Thus, they are trying to give the project more significance and interest potential crypto investors. After the foundation has been established, you can click on the coins that stand out to you to obtain more information. That includes thecirculating supply andtotal supply figures, a list ofexchanges where the asset is traded, thefully diluted valuation , etc. All of these details provide tremendous insights and intelligence on individual coins and tokens.

The Benefits Of Etfs To The Crypto Market

Successful crypto investors all over the globe know the rules on smart investing and why your own research is so important when stumbling across a new intriguing project. To help newcomers understand the basics of a careful approach to crypto investing, we cover the essential aspects of DYOR. 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.

While you should be wary of a project without any social media accounts, you should be just as wary of a project with overly active ones. Overly active accounts, in the worst case, suggest that the project might just be trying to stir up hype and FOMO around itself and has no real value to offer. In the best case, it could mean the team is too busy building a following and not focusing on the actual project.

This is perhaps the most important thing to consider when researching a cryptocurrency. You need to ask yourself what its real-world uses are, as this plays a very important role in determining whether or not the crypto will be able to stir up demand organically. Because there’s more to research than just reading an article about a coin or getting a tip from your favorite crypto twitter influencer.

How To Do Your Own Research Dyor?

However, with double or triple counting, and inconsistent ways of calculation make it difficult for users to effectively see how “healthy” the platform truly is. Before you invest in some new project, or mint the next big NFT drop, trade on an exchange or even put your tokens into a wallet, you’ve been told “DYOR”. In fact, you should have heard it no less than a million times from us at OAX Foundation as well. Tweets or posts will often end with “this is not financial advice, DYOR”.

You should be cautious even about the minor details of the project before making an investment decision. Unfortunately, projects that launch tokens without real usability and burn mechanisms have a little chance to become really successful. On the contrary, tokens with real use cases give their holders access to blockchain-based products or services and are frequently used in IDOs, IGOs, and ICOs. In exchange for assisting in funding crypto startups, investors get special access to products and services. A potentially successful crypto project should have deflationary nature that’s why you have to check its token’s utility. Crypto tokens need to have actual use cases and mechanisms to burn as crypto burning helps increase the value of each remaining token.


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