First of all, I’m sure you are aware that not everything on the internet is true. There is much misinformation that is easily spread, especially in a young industry such as crypto is. And many are rushing to share it, even if they do not have any expertise or authority.

• For example, the All-Time Low of BNB was 0.5 USDT on the BNB/USDT market pair on the first day of trading.
• Have you ever wondered why it’s usually more difficult to view posts on social media timelines in strictly chronological order?
• And, you’ll grow as a trader through the knowledge gained simply by reading about a market participant.
• Finally, what are the discussions going on in the community?
• If you’re new to the crypto space and trading, ‘DYOR’ may be the most important phrase to know while you get started in this volatile world.
• Every self-dependent trader requires a set of questions that they need to ask themselves before investing into a certain coin in the crypto world.
• When excitement overwhelms you, you rarely think about the consequences.

Ethereum saw massive adoption due to its vibrant developer community, building all manner of dApps (decentralized apps) and Dexes (decentralized exchanges) projects dyor meaning on the Blockchain. So, research what will drive demand and adoption beyond pure speculation. What are the incentives to buy, hold, stake and lock the token?

Some key things to consider when researching a project/token/coin

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. As a rule of thumb- even with the most trusted sources, NEVER BELIEVE EVERYTHING YOU READ. In addition, KYC regulations aren’t only valid for participants of the financial industry.

What is the status of those projects, and what happened to investors’ money? If they have a solid following, they have a lot more to lose for spreading bad info so they usually spread legit ones. Still eager to learn more about cryptocurrency trading terms? Check out our Q&A platform, Ask Academy, where you can get your questions answered by the Binance community. ATH breaches are also often accompanied by a spike in trading volume.

What is DYOR in Crypto?

In this article, we will cover some key DYOR tools and how you can use each of these tools for effective crypto research. Telegram and Discord have a clear advantage; they are the best places to actively be part of a community. Check the overall market sentiment towards the cryptocurrency by looking at forums, social media, and other sources of information.

Before studying the project’s white paper or collecting opinions on social networks, go to the asset pages on the CoinMarketCap and CoinGecko platforms. They will help to make the first impression about the cryptocurrency. Check the market capitalization, and make sure the project is still alive and has sufficient trading volume. Sentimental analysis helps to understand investor behavior in such a highly speculative and volatile market like crypto. With sentimental analysis, you’re looking past the numbers to see what the market is thinking and feeling. As a result, this research is often done through social media, public forums and news stories.

List of questions to answer before making an investment

Websites are a good way to start, especially when you need high level information on the project. You can find things like market cap, trading volume, price history, charts and so on, on crypto focused websites. When investors are scouting for potential investments, they need to do their own due diligence on the project to ensure that they can take into account all risks. Otherwise, they won’t be in control of their investment decisions and may end up making the wrong choices. Different opinions can accommodate for different strategies, and successful traders and investors will have wildly different strategies. The main idea is that they all did their own research, came to their own conclusions, and made their investment decisions based on those conclusions.

The experience that you gain over the process is going to help a lot in the long run. As already mentioned, security measures are very important and that is why any trader should be aware of the legal barriers to entry. Every single possible competitor which is very close to the coin that a trader is researching on, should be researched on to. After doing so, whatever seems better to the trader should be invested in after strategizing the plan completely.

The US, one of the largest markets in the Crypto industry has banned Tornado Cash, the industry’s largest Coin Mixer

Moreover, you can refer to peer-reviewed sources like journal articles to further strengthen your DYOR skills. Just because a site has a correct information does not mean that it is reliable. Thus, ensure that a site covers wide topics and has in-depth, detailed reports and has been serving people for some time. Investopedia.com is a leading financial sector online resource.

This resource is great for accessing customized analysis carried out by the platform’s users into various crypto assets. Many users contribute excellent technical analysis on cryptocurrencies and tokens. Many crypto and blockchain projects are decentralized finance (DeFi) applications.

Related Terms

If you can, a background check on each team member can be a lifesaver when it comes to investing in a project. A lot of projects have gone under due to uncovering illicit activities in the background of core team members. The website should share useful information about the key people behind the project. Poor designed websites, spelling errors and a lack of transparency around the team are all red flags of an outright pump & dump scheme. The best crypto sources will give both pros & cons about any given project, so you get different angles and make a more informed decision.