How to Do Your Own Research ( DYOR )


Have you ever depends on influencer for updates? 

Stay with me as I break it down for you on how to DYOR ( do your own research ). 

Yeah, you read that rightly 😂

What Does DYOR Mean?

DYOR, or "Do Your Own Research," is advice in the crypto world to thoroughly investigate projects before investing.

This helps protect investors from scams and worthless projects, ensuring they find legitimate and valuable opportunities.

Why is DYOR Important?

DYOR is vital to avoid financial losses due to scams in the decentralized finance (DeFi) and blockchain space.

With fewer intermediaries and minimal regulation, investors must research thoroughly to discern genuine opportunities from fraudulent schemes.

Furthermore, in DeFi, without centralized authorities, there's no recourse for grievances if a project is a scam. Fraudulent teams exploit this by making false promises, and blockchain's immutable records mean losses are often irretrievable.

This highlights the importance of DYOR.

Tips for Conducting Your Own Research (DYOR) in Crypto Projects

➡️ Find the Project Team and its Unique Selling Proposition (USP): Before investing, gather information on the project’s goals, team, and track record.
Anonymous teams should raise concerns.
Consider the market demand and competition.

➡️ Evaluate the Project Roadmap: Understand the project’s roadmap for feasibility and realistic goals.

Beware of overly ambitious timelines and promises.

➡️ Check the Project’s Social Media Reputation and Presence:
Verify the project’s credibility through social media platforms like Medium, Telegram, Reddit, and Twitter.

Look for community interactions and how the team addresses concerns.

➡️ Research the Project’s Source of Funds: Ensure the project is backed by credible individuals or firms with a positive track record in the crypto community.

Details can usually be found in the project’s whitepaper.

➡️ Read the Project’s Whitepaper:
Review the whitepaper for technical details, development plans, and utility of the project.

➡️ Find Third-Party Audit Reports:
Look for audits by reputable firms like Certik or Quantstamp to verify the project’s security and code integrity.

Tools commonly used for researching crypto include:

1. CoinGecko: Provides market data, including prices, market capitalization, trading volume, and more for various cryptocurrencies.

It also offers educational resources and news.

2. CoinMarketCap: Similar to CoinGecko, it provides comprehensive data on cryptocurrencies, including rankings, market caps, and historical data.

3. Investopedia: Offers explanations of financial terms and concepts related to cryptocurrencies and blockchain technology, making it a valuable resource for learning.

4. Social Media: Platforms like Twitter, Reddit, Telegram, and Facebook provide community insights and discussions about cryptocurrencies.

They can offer real-time updates and opinions, though information should be verified.

5. Blockchain Explorers: Tools like Etherscan (for Ethereum) and Blockchair (for Bitcoin and other blockchains) allow users to explore and track transactions, addresses, and blocks on the blockchain.

6. Crypto News Websites: Websites such as CoinDesk, Cointelegraph, and Decrypt provide news, analysis, and insights into the crypto industry.

7. Wallets and Exchanges: Platforms where cryptocurrencies are bought, sold, and stored can provide information about specific assets and their trading volumes.

TAKE HOME.

DYOR is crucial for investors in the cryptocurrency and blockchain space.

The absence of easy-to-understand information and lack of regulation somewhat makes scams more likely in the crypto space than in traditional financial markets, so never overlook the importance of research and verification.

Doing the proper research before getting monetarily involved in any project is a concept that has more relevance in the blockchain sector than in many other industries because it is a disruptive and highly volatile sector.