The world of Cryptocurrency is completely filled up with risks as well as opportunities. With the existence of so many tokens and coins to choose from, it is very challenging to know which ones are worth investing in. Crypto Do Your Own Research (DYOR) is the best way that offers you a route to conduct your own research before you straight away jump into investing in some random cryptocurrencies and then lose your money in the process.
That being said, the cryptocurrency community neither possesses a set of commandments nor enforce a strict set of rules. However, one of the approaches that the investors adopt is that everyone must grow by relying on their personal research. In an ideal world, the beginners must possess an universal guideline that dictates how a sector must work. Since the sphere of cryptocurrencies does not offer us such an opportunity, thus, Do Your Own Research in cryptocurrencies is all we are left out with.
DYOR is such a philosophy that has never run out of fashion. It can be utilised in all aspects of life. However, when it comes to the disruptive and highly innovative industry like the blockchain, there is no alternative way than DYOR. By this time, you might have already guessed, in this article we will cover all the important aspects of Crypto Do Your Own Research (DYOR) including some of the most promising tools. We can guide you in all possible manner. But research done on your own is still a valuable skill that you would definitely require in the later phases.
This article aims to help you in doing your own research while choosing cryptocurrencies for investment. This piece is not focussed on the DYOR token or DYOR crypto meaning but must be utilised if you are looking to invest in it.
What Is “Do Your Own Research (DYOR)” In Crypto?
The term “DYOR” is the acronym of the phrase “Do Your Own Research” that urges the newcomers to learn on their own not to solely rely on others always. To be even more specific, Crypto Do Your Own Research is pushed by the blockchain community in the bid to protect the new investors who are looking forward to good investments and later on fall into the trap of being shilled by the other investors who want to fill up their bags. The philosophy helps to gather the investors right kind of the market intelligence for making successful investment decisions.
What Will Happen If There Is A Failure To Crypto Do Your Own Research In Practice?
Let us explain the answer with a brief example. For instance, a new investor named Mark joined the cryptocurrency market by creating an account on one of the most popular cryptocurrency exchanges, Binance and funded his account. Earlier, he has heard a lot about some cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and a couple of memecoins with fancy names. But he is inclined towards purchasing an altcoin without much research or knowledge as the only thing he is focused on is earning great profits.
Say, he has learnt from somewhere about a crypto forum or rather crypto subreddit, Bitcointalk where he starts his search for a great altcoin. He visits the subreddit to figure out which of the crypto tokens are trending as of lately. In his journey, he finds one such asset from the users who had been advertising the same asset to others for raising their own portfolio. Alternatively, all those users might be the part of the marketing team of a project who talks about the project solely to raise awareness.
If you are solely trusting in the words of others, you are most likely to be deceived. It is for sure that a person might help you out by revealing his deep knowledge on the highly bullish altcoin. However, most of the time, that is just not the case. At the end you could see that Mark will purchase someone’s bags and end up with a project that is completely the worst and that it is not even being developed actively.
How To Do Your Own Research In Cryptocurrencies?
So, how to DYOR in crypto is a pretty common question. As seen from the example of Mark’s cryptocurrency journey, he bought a digital asset by trusting on the words of others rather than conducting a thorough self research and reaching a conclusion of his own. If he is lucky, as we stated, he can truly grab a treasure chest, which is obviously a rare occasion in the world of crypto investments.
At the day’s end, cryptocurrency is all about making money. Thus, you or the new investors must not be surprised by the fact that the other investors are taking advantage of one another. Thus, the only solution left to not fall prey to something that seems too good to be true is Crypto Do Your Own Research (DYOR).
That being said, if you are looking an answer on how to do your own research on cryptocurrency, there are several ways in which one can conduct research as mentioned below:
Learn – How To Learn
At the first instance, you might have taken aback. The fact is most people don’t know how to learn properly. They just memorise the unnecessary information, never cares to test a process or experiment, fails to research the earlier surface level information and most importantly, never grasps a subject’s core meaning.
If you are one of them and fall in this category, then it is important for you to learn how to learn that just focus on understanding blockchain or the kind of information the crypto transactions hold. So you need to get back to the basics, set out a strategy to find your way out in the decentralised world and stick with it. You must not bother to completely rely on various Twitter threads containing half truths.
Identify What Kind Of Information You Require
The very first step in researching a token or a crypto coin is to determine exactly what you want to know about it. You would have to understand if you require a quick overview of the cryptocurrency market or if you are looking for more in-depth information. If you are looking for a quick overview of the crypto market, then you can visit CoinDesk or CoinTelegraph as they are good sources and offer an excellent guide to cryptocurrencies. In the upcoming segment, we will discuss more about the various Crypto Do Your Own Research tools.
Here is a list of things that you must consider if you would like to know a particular coin and conduct your research in the initial phase:
- Check various groups and websites for updates on the coins or the tokens.
- Get yourself informed about what the coin or token does.
- Let yourself know how it works.
- Know who is behind the project.
- If you want to know about ICO or Initial Coin Offering, find out how much money has been raised.
- What are the things that people are usually saying about it?
Locate The Best Information Sources For Your Research
There are a whopping number of good places to get your information on a particular crypto token. However, not all of the sources are completely reliaable and that they can spread some misinformation or incomplete truth. Thus, it is absolutely required to have a fair idea of the source from where you are actually collecting information about the cryptocurrencies.
Identify The Potential Crypto Investments
A significant portion of DYOR consists of identifying the projects that are great options for the investing accounts. If you are arguing about which block size is better, then you will just get a little far. The real purpose of participating in the crypto markets is to invest in the crypto assets and not discuss them. This is the reason why you are required to warm up your chair and spend hours on researching a single project.
The very first thing that you will have to do in this is create a short list of the projects that you feel you are interested in. Next, you must review individual projects by reviewing their team, website, marketing style, smart contracts and so on. You are required to be practical and do things while conducting the fundamental analysis (FA), which we will discuss shortly.
How To Pick Up The Right Cryptocurrencies?
The primary reason that people conduct a crypto DYOR is to choose the right cryptocurrencies from the host of available crypto coins to invest in. Most people question how to research what crypto to buy. Here is how to carry out the research in the most productive way possible. For offering a bigger picture of your efforts on research while accessing a potential cryptocurrency investment, the key elements that you must consider include:
- Circulating Supply vs Total Supply
- Market Cap
- The Community
- The Competition
- The Road Map & Vision
- The Team (developers, advisors, partners)
- The Utility & Use-case
- The Website & White Paper
- Trading Volume & Liquidity
Analyse To The Extreme Extent
Now it is the time to lay out the benefits of analysis. Anything that aids you to become even more informed regarding a subject is the form of analysis. Regardless of you spending time on doing something you love or reading the tokenomics report of a team, the end result is all the same. You are just analysing the potential of a project.
Analysis comes in all forms and shapes and you must stick to the one that you think you can do best. If you are good at understanding new topics, then you must stick to doing FA. If you are good at writing code or discovering patterns, then you can create your own script using the Pine script or even stare at the chart of cryptocurrencies unless you find a meaningful connection.
I. Technical Analysis (TA)
Earlier we have already discussed that analysis is the root and it is cent percent true for the day traders. In the bid to succeed with the technical analysis, all you are required to do is stare at the charts, look for the candle patterns, check up the indicators and test new trading strategies. Similar to all the other places that require research, DYOR is important here as well.
II. Fundamental Analysis (FA)
The investors are welcomed by interfering with the fundamental analysis or FA. It is an evaluation strategy that is used to determine the fair value of an asset on the market. Usually, this is done by reviewing business practices, roadmaps, whitepapers, marketing strategies, teams, development, tokenomics, network activity and more. In some of the cases, FA simultaneously includes monitoring the market data like circulating supply, volume, distribution of team tokens, token emissions and so on.
With the aid of the fundamental analysis, the users are able to reach conclusions – if a project is overvalued or undervalued. It also offers you to understand how a crypto asset is performing against its rival projects. As the process is excessively extensive and seeks for a lot of research, the investors can solely depend upon DYOR.
Examine Your Comfort Level With A Cryptocurrency Before Investing In It
Considering investing in all things including the cryptocurrencies, there exists a certain risk. If you are looking forward to investing in the cryptocurrencies, you must keep this in mind that you might lose a part of the cryptocurrencies or even all your investment in the worst case.
“Doing your own research can help to mitigate some of those risks, but it won’t totally protect you. The reward, though, for taking on risk is the potential for a greater investment return.”
Crypto Do Your Own Research Tools
Often people ask where do you DYOR? As we have seen earlier, for doing your own research, you are required to possess certain reliable tools that will offer you some genuine information that will help you further in the investment. In this segment, we will offer you some great research tools and how to use them for your benefit, that you must utilise in your crypto DYOR.
Crypto DYOR Tool 1: CoinMarketCap.com
CoinMarketCap.com is considered to be the leading platform of the world for the cryptocurrency market intelligence and research. It possesses a huge amount of the market information on almost all of the coins and the tokens that currently exist. The amount of data on the platform is so large and diverse that most of the new aspiring investors might feel lost figuring out on what to actually pay attention to.
The primary information that you can focus on for all your initial research is the token and coin rankings in terms of either the market capitalisation or the 24 hour trading volume. In the later stages of Do Your Own Research, you might look at the information on specific tokens of interest to you.
Against each of the tokens or coins, the CoinMarketCap offers convenient information on one screen regarding the market cap, trading volume, fully diluted market cap, maximum supply permitted for the token or coin and the circulating supply. These are considered to be the key bits of intelligence that evaluate a token or a coin.
In addition to the above indicators, it is beneficial to study the price charts of the tokens or coins to check how volatile they have been over a specific period of time. CoinMarketCap also provides great interactive charts for zooming into various time periods and then studying the price movements of the coin in even more detail.
Crypto DYOR Tool 2: DefiPulse.com
Several cryptocurrency and blockchain projects are applications of Decentralised Finance or DeFi. For all of these projects, in addition to studying the market cap of the token, circulating supply and various other chief indicators, it is helpful to look at the TVL or the Total Value Locked stats of the project.
The TVL also refers to the total amount that is locked in the platform’s smart contracts, usually in the format of the debt collateral or even the liquidity pool funds. This serves as a crucial measure of the performance of a DeFi project.
DeFi Pulse is also considered to be a cryptocurrency research and news website that specifically tracks the TVL statistics for the largest DeFi Projects. While the website serves as a good source of general information regarding blockchain and cryptocurrencies, the most prominent feature of the website is its up-to-date TVL stats.
Crypto DYOR Tool 3: CoinMarketCal.com
This website is an online calendar of the blockchain projects’ upcoming scheduled events. Provided the vast number of coins and tokens in existence, tracking the important future events of these tokens and the developments is pretty challenging. Thus, this website offers a great resource making this task much more manageable.
The events that are covered by the website include the token or the coin listings, cryptocurrency burning, and the other supply related events – forking, Telegram channel AMA (Ask Me Anything) sessions, governance voting and much more.
While the sources like DeFi Pulse or the CoinMarketCap can aid you with the historical insight, this particular website is a great research tool that is completely future-oriented.
Crypto DYOR Tool 4: CoinGecko.com
This website is another market research source for the cryptocurrency projects. It is quite similar to the CoinMarketCap offering information on the prices, market caps and the trading volumes of a huge number of tokens and coins. CoinGecko is also a good source of cryptocurrency intelligence in the form of a newsletter, podcasts and industry commentary.
However, this needs to be stated that CoinGecko cannot compete with the website having similar aim, CoinMarketCap in terms of the sheer volume and the variety of the market intelligence offered. However, the website can be utilised as a great tool for cross checking the KPIs of the tokens or coins that are listed on the CoinMarketCap.
The decentralised nature of the cryptocurrency world states that even the leading websites might not possess the perfectly accurate figures at all times. Thus, the CoinGecko is a pretty useful tool for cross-referencing the accuracy as well as precision of the key indicators such as the token prices, market caps, trading volumes and rankings that are listed at CoinMarketCap.
The website in comparison, CoinMarketCap is owned by a leading crypto exchange while CoinGecko does not possess such an affiliation. For some of the people, this serves as just the right amount of reason to trust the data of CoinGecko rather than the figures of CoinMarketCap. Usually, it is largely a matter of personal opinion and that the CoinMarketCap has been inaccurate rarely in terms of market data.
Crypto DYOR Tool 5: r/CryptoCurrency on Reddit.com
How to DYOR in crypto reddit? Reddit stands as one of the largest discussion forums having a diverse web of the subreddits that are dedicated to different topics. The primary cryptocurrency and blockchain discussion board is r/CryptoCurrency. This serves as a great source of discussions and news about the crypto world. While considering Crypto Do Your Own Research, this subreddit is a pivotal tool for getting first-hand insights into the various blockchain projects. Several blockchain projects including the small ones are actively being discussed on the website.
The primary value of Reddit in your search is the ability to ask the opinions of people who have directly been involved in the cryptocurrency projects or have earlier experience in purchasing those coins. Reddit is not similar to websites like CoinMarKetCap and CoinGecko that offers you statistics on the prices, market caps and other metrics. On the contrary, it offers a unique route to converse with the users directly regarding the blockchain projects.
Depending on first hand experiences, initiating a topic on even the most obscure tokens can offer you a lot of responses as well as opinions. Thus, the r/Cryptocurrency subreddit is typically a good qualitative and easy data based quantitative Crypto Do Your Own Research tool. While you are accepting opinions on Reddit, you are required to be aware of “shilling”, which refers to the users making promotional and untruthful posts in the bid to persuade others of the worth of their project.
Crypto DYOR Tool 6: Investopedia.com
Investopedia.com is a leading financial sector online resource. It serves as a repository of knowledge, news and definitions of all varieties of finance including derivatives, traditional stocks, cryptocurrencies and forex.
Several complex concepts from the cryptocurrency world and blockchain are explained in simple words on the website. This website serves as a valuable resource for the early-stage cryptocurrency research for understanding the basic terms and definitions.
Crypto DYOR Tool 7: TradingView.com
This website is actually a social media platform for both the aspiring investors and the investors for sharing their opinions, knowledge and the analysis on topics that are related to traditional finance and also cryptocurrency investing. One of the primary features of the platform is the useful charts that the community members contribute to the website.
This resource is awesome for accessing the customised analysis that is carried out by the users of the platform into the various cryptocurrency assets. Several users contribute some amazing technical analysis on the tokens and the cryptocurrencies.
Crypto DYOR Tool 8: Google Trends
If you are considering a free research tool in the Google analytical suite, then nothing can be so great as the Google Trends. It displays the popularity index and the trend over time for any phrase or word that has been searched for on the website. You can also use the token names or the coin names to see their trend and popularity.
This is a great tool for tracking the public interest in various cryptocurrencies and tokens. Google Trends permit you to narrow down your search results to specific countries and time periods. Additionally, you can also go ahead and compare two or more search items on the same chart.
However, there is a limitation in the Google Trends, which is that the less popular tokens or the smaller ones might not have enough search volumes for producing the reliable results. It is a tool that is mostly suited to researching the trends for the even more widely-known tokens.
Crypto DYOR Tool 9: Websites & Social Media Pages Of The Project
None of the Crypto Do Your Own Research exercise would be complete without the careful study of the own website of a blockchain project and its social media pages. It is important to research the website of the project for locating the key information such as:
- People that are behind the project including the founders and possibly the development team. Some of the projects offer a lot of details regarding the people involved, while the others possess a heap of information. The lack of the information might be useful on its own – the projects with the less transparency on the team involved might require further scrutiny.
- The detailed process of the way a platform or application works including the tokenomics. This information is mostly detailed in the whitepaper of the project.
- Any venture capital that the project attracts.
- Details on what the voting, ownership and the yield-earning rights the token holders receive. Again, often this is described in the whitepaper of the project. However, some of this information might not be clearly covered in the paper. But it is still available elsewhere on the website, or even on the project owned social media handles.
- The cryptocurrency exchanges and the wallets supporting the token of the projects.
The crypto market is highly volatile and that it is not for the faint-hearted. It is a fact that a lot of people have already lost money and there are people who have quitted from the market seeing such situations. It is however essential to properly conduct Crypto Do Your Own Research before investing in any of the cryptocurrencies that you might think have the maximum potential.
Additionally, before investing you must have to consider the potential risks that are associated with it. You must be aware of the fact that there are no guarantees and you might lose all your money if you do not take proper precautions. However, all that has been discussed here must not be confused with the do your own research token or DYOR token and seek for dyor crypto price prediction in this article.