What is DYOR?
More new investors have entered the market as the cryptocurrency industry has gained popularity. A large portion of these new investors has little to no experience with cryptocurrency. Here is when the notion of DYOR (Do Your Own Research) becomes important.
Do your own research, or DYOR is an acronym. In the cryptocurrency community, this phrase is frequently used to encourage people to take personal accountability for their investment choices rather than putting their complete faith in what they heard about a project. When cryptocurrency traders and enthusiasts post publicly or share their market analyses on social media sites, the phrase is frequently used as a disclaimer.
It's crucial to be cautious about who you trust because fraudsters and scams exist in the cryptocurrency world. People may not be telling the truth just because they proclaim themselves an expert. Everyone has various biases and motivations when recommending/ not recommending something. Shilling is when people advertise a certain project in hopes of changing the price. It is difficult to distinguish between an objective post and a shilling. You are more likely to make informed decisions that will help you attain your financial objectives if you take the time to learn about the various options and do your own research. Research by yourself independently and constantly and fact-check what you hear or read.
Researching may be time-consuming and complicated, but it is a must for investing. Here are a few steps you can follow to understand the project.
The team behind the project. Searching top managers’ experience, education and accomplishments may provide a solid ground for where the project will be heading. The technology. Even if you don’t understand the complicated tech words, research what technology the project is using and try to get a basic idea. The community. Research the community and what they think about the project.
Other options you can explore are:
- Technical analysis
- Social media
Resources for DYOR:
Fundamental analysis is crucial in cryptocurrency investing, just as technical analysis is crucial in traditional markets. You can identify projects with significant promise by conducting your own research.