Why DYOR Became the Crypto Mantra of 2022
The tools covered above are the key to solid research and due diligence. Each of them serves a somewhat different purpose, but used together, they will help you carry out effective DYOR. Reddit https://xcritical.com/ is the world’s largest discussion forum, with a diverse web of sub-reddits dedicated to various topics. R/CryptoCurrency is Reddit’s primary crypto and blockchain discussion board.
- Also, checking the metrics makes it easy to compare different cryptocurrencies.
- Reddit is the world’s largest discussion forum, with a diverse web of sub-reddits dedicated to various topics.
- You can find the above key crypto metrics on every single coin page on our website.
- Intuitively, these investors recognise that selecting the right cryptocurrency is the most important decision they will make when investing in crypto.
- Alternatively, those users might be part of a project’s marketing team who talk about the project for the purpose of raising awareness.
You’re well on your way to building an impressive crypto portfolio filled with exciting digital assets. The journey isn’t over once you’ve made your crypto investment. Fundamental analysis is the first step of DYOR in crypto as it determines whether a project is undervalued or overvalued. FA also includes monitoring crypto market data such as circulating supply, token emissions, volume, distributions for team tokens, and so on. Additionally, you can find audits — if provided — along with GitHub activity, social follower counts, a list of wallets supporting the asset, and more.
Another thing you need to keep in mind while doing your research is that the token that interests you should not be all in the pocket of private investors and original developers. This might lead to them selling them when the price is high which may prevent the tokens from reaching their potential high. Simply put, before anything first you should go to popular Cryptocurrency websites like Coinmarketcap or Coingecko or any reputable site and look at what the current price of the cryptos is. Details on what ownership, voting, and yield-earning rights token holders get. Again, this is often described in the project’s white paper. However, some of this information may not be clearly covered in the paper but still be available elsewhere on the website, or even on social media pages owned by the project.
Blockchain Technology Use Case
In the crypto space, founding teams often stem from the same company, startup, or college. Many crypto projects are under development at the time of investing in the underlying cryptocurrency. For that reason, it’s crucial that you research crypto founders’ professional and educational history. Other tools on CoinMarketCap platform to explore include the educational platformAlexandria, thelisting of exchanges,NFTs, and theGravity feature.
Detailed process of how the platform or application works, including its tokenomics. It is a great tool to track public interest in various tokens or cryptocurrencies. Google Trends allows you to narrow down your search results to particular countries and periods of time.
In this article, we will explain why DYOR is so important and how to do your own research. This is why we started Token Metrics, to make the crypto space more accessible and easier to navigate for everyone. The score for each category we review takes many data points that then become the fundamentals, technology, and TA scores, and then those scores aggregate into the overall Token Metrics grade. The turnover or liquidity ratio is a metric we like to look at to determine how liquid a project is.
DYOR Tool 1: CoinMarketCap.com
It is a title worn by those who claim not to know everything, but humbly do the best they can while advocating for bitcoin and individual sovereignty. This acronym is most often used to suggest a person is making a financial decision that will not turn out well for them. It’s also used to discount a news story, opinion, or other commentary as foolish or indefensible in the face of criticism or logical counter-argument. Okay, so tokenomics is a fancy word in vogue used to describe the economy of Tokens or coins. So you need to understand if the coin is inflationary or deflationary.
In our crypto guides, we explore bitcoin and other popular coins and tokens to help you better navigate the crypto jungle. 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.
Many analysts describe the current cryptocurrency hype as the Wild West. Like the Wild West, the cryptocurrency arena has many fraudulent activities. Our MEXC Blog team prepared a comprehensive DYOR-guide for you. So, go ahead and stare at charts, look for candle patterns, check up indicators, and test new trading tactics as there is always something new to learn. While we have created a step-by-step process on how to go about DYOR in crypto, you can run down the list below to imagine the bigger picture of your research efforts.
Precautions: Things to Keep in Mind While DYOR
Disclaimer – Information found on our website is not a recommendation or financial advice. Past performance is not an indicator of future performance. Our website and marketing collateral use reference rates as an indicator only and should not be used for decision making. Content may not always be entirely accurate, complete or current. The concept of a decentralised stablecoin protocol is sound.
Visit the project website, download the white paper, view the roadmap and get to know the members of the team. For more on how to research cryptocurrencies to send your portfolio to the moon, refer to the below video featuring our founder and CEO, Ian Balina. The purpose of using the turnover ratio is to find projects that are liquid and also have a lot of hodlers involved. A good rule of thumb is to not invest in a token with a turnover ratio of 10% or lower because it can become extremely hard to sell in the event of a market crash. A project that isn’t being regularly updated is much more likely to be a scam or lose traction in the fast-moving crypto space.
But unlike that, another token airdropped, the Good Aringding, people who did not sell it initially now presently have almost no utility and hence no value. Your coin should be listed in a reputable exchange and you must ensure that the listing is genuine. Used in an internet forum scenario, as a gentle reminder for readers to do their own research on a subject, rather than take everything they read at face value. It’s unclear how governments will treat decentralised stablecoins.
In most cases, when you spot trading in cryptos by looking at historical price movements, you can identify a strategy where the prices of the crypto are available at a reduced rate. Cyber world keeps facing constant online fraud schemes, and the crypto industry is no different. Different fraudsters keep bothering the investors with their fake projects.
Crypto Predictions for 2023: What to expect?
One of the best things to do before making a decision is to blend in with the crypto community on different social media platforms and observe the activity and trends on a daily basis. Additionally, evaluating the productivity and performance of the crypto asset or project includes market capitalization, liquidity, trading volume, and supply mechanism. Crypto is a broad subject and is still expanding, thus presenting its members with the opportunity to keep learning and expanding their crypto knowledge.
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. Stablecoins are widely held at the start of bear markets as investors go to risk-off positions, indicating that demand will be stickier than other projects.
Learn How to Learn
Such stories are so common, some popular websites keep track of “bitcoin obituaries” with hundreds of FUD-backed stories listed. The antidote to FUD is gaining a better understanding of the counterarguments. An excellent primer on bitcoin fundamentals that includes well-articulated rebuttals to most common FUD is Parker Lewis’ Gradually, Then Suddenly series.
Investing fixed dollar amounts over regular periods of time regardless of the price of the asset. A cryptocurrency created by the pseudonymous developer Satoshi Nakamoto. “Smart Money” means investment from institutional investors. Projects that have received a large amount of institutional investment tend to be more reliable.
Basic Information and Team
If the project you’re researching claims to have partnerships with world-leading corporations, you should inspect the partnership announcement and the terms of the partnership. Cryptocurrencies, and topics related to cryptocurrencies, can get very technical and be complex to understand. A lower low is when the price of a cryptocurrency closes lower than the previous day, which itself closed a…
Technical Analysis (TA)
In contrast, decentralised stablecoin protocols like Terra fulfill the crypto vision of decentralisation. They provide all the value of a stablecoin while still being decentralised. This is clearly a growing trend in crypto, so let’s research the coin further. Market capitalisation – This is the current price of a cryptocurrency multiplied by its current circulating supply. Assuming the project has found a great way to solve an important problem, we can focus on the other factors that make up a great company.
In November 2017, Vitalik, the founder of Ethereum, had already accused Bitconnect of being a scam. However, as investors were so overwhelmed by the high returns, they didn’t realize the huge risks behind the yield. In fact, if we look deeper into Bitconnect, it is easy to discover the Ponzi nature of the project.