In this article, I will explain what does this acronym means and how you should do it. A lot of people are drawn to cryptocurrency because they have heard so many stories of people making easy money. They look to make a quick buck, find what is allegedly the next big thing, dive in without any due diligence, and get wrecked.
- The purpose of doing your own research is maximizing profits and minimizing risk.
- Just because someone has a loud voice now or got lucky once (or twice) doesn’t mean their view on the matter has any significance.
- DeFi Pulse is a crypto research and news website which specifically tracks TVL stats for the largest DeFi projects.
- Even if there is a motive or incentive to give out that information, if the source is upfront about and honest about the bias, they are usually more credible than those that hide it.
- BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency.
- As a way of combatting fraud, people were urged to ‘DYOR’ and investigate any potential investment fully before committing money to any project.
Yet trading is both really complicated and often doing technical analysis is not reliable. CoinMarketCal is an online calendar of upcoming events at blockchain projects. Given the vast number of tokens and coins in existence, tracking their future important events and developments is not an easy task. CoinMarketCal is a great resource that makes this task much more manageable.
Why Is It Important to DYOR?
It’s equally important to research whether or not existing technologies would make this project’s technical foundation irrelevant in the near future. To fully appreciate the context of DYOR, let’s use the example of traditional investing. As a way of combatting fraud, people were urged to ‘DYOR’ and investigate any potential investment fully before committing money to any project. CoinMarketCap is owned by a leading crypto exchange, while CoinGecko has no such affiliation.
I’m involved in the NFT arena and my Twitter feed is constantly filled with shill posts promoting the next big thing. 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. You can also compare two or more search terms on the same chart. It acts as a repository of knowledge, definitions, and news for all varieties of finance — traditional stocks, derivatives, forex, and cryptocurrencies.
How to Do Your Own Research (DYOR) in Crypto Projects
Of course, their promises are entirely fake, designed to draw people in. It’s also useful if you’re unsure about something and want to get a second opinion. Finding a good online or in-person community will undoubtedly give you an advantage over other traders who are attempting to conquer the world of cryptocurrency from the comfort of their own homes. A quick look at the Ethereum website will also outline how the blockchain works with an extensive list of community guides.
Nowadays it’s also applied to stocks, bonds, REITs, hedge funds and marriage. Cameron and Tyler Winklevoss, famously known as the Winklevoss twins, are American cryptocurrency investors and… Investing fixed dollar amounts over regular periods of time regardless of the price of the asset. Simple Ledger Protocol (SLP) is a token system that works on top of Bitcoin Cash.
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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. In terms of how to reply, you can acknowledge his advice by saying something like, “Thanks for the reminder! I’ll definitely do my own research before making any decisions.” This shows that you appreciate his input and are taking his advice seriously.
Not only that, it also allows you to receive updates straight from the developers. This acronym is quickly growing in popularity as new crypto projects and investment opportunities are being released to the general public. DYOR allows you to stay up-to-date with the latest products, technologies, news, legislation, trends, etc.
Signs an NFT Project is Dying
It takes time, especially in the early stages, to build up the basic knowledge you need to make informed decisions with clarity and confidence. To avoid enriching scammers, investors were strongly advised to do their own research to ensure that the project was legitimate before putting their money into it. The phrase has since become widely used on various social platforms, particularly among newcomer investors who might fall prey to scams and misinformation. It is almost essential to sample public opinion about a project before spending money. Social media platforms like Facebook, Twitter, Telegram and Reddit contain raw and undiluted information from members of the crypto community who may have in-depth details about the project.
Joining crypto groups is a terrific opportunity to expand your research, gain expert advice, connect with like-minded individuals, and keep up with the latest innovations in the crypto world. A cryptocurrency created by the pseudonymous developer(s) Satoshi Nakamoto. 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.
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When a project is big enough, with a large community backing it and a strong foundation, then celebs can be a good sign (an example is NFT collection Bored Ape Yatch Club). It is always a red flag if a project is not growing through a dedicated community, but solely through courting and promoting itself through celebs. 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. So, research what will drive demand and adoption beyond pure speculation.
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