What is DYOR? A guide to Doing Your Own Research

For example, the All-Time Low of BNB was 0.5 USDT on the BNB/USDT market pair on the first day of trading. Does breaching the ATH mean that the price will just keep going up forever? Traders and investors will look to take profits at some point and may set limit orders at certain price levels.

At the end of the day, all the groups are eventually very noisy and there are always people spreading highly speculative (or just false) information. However, like all public forums, Twitter is full of people with opinions, many of whom are shilling and promoting the coins in their portfolio for personal gains. Engage different accounts to gauge different opinions on the projects, look through the comment section and follow hashtags related to the project to get a 360 view of it. It simply reminds investors not to trust everything in the crypto industry mindlessly.

Crypto Guides

Making money and protecting your money are not always simple tasks in the world of cryptocurrencies. This guide is designed to help you become a better researcher when you come across a potentially profitable investment. We are here to serve you crypto news, cryptocurrency live price charts and all the crypto terminology of market. A key component of DYOR is to not blindly believe what you read or prediction/tip you see. The crypto space is unfortunately rife with bad faith advice, mostly hype, coin shilling and sometimes straight up pump and dump schemes.

Buy Bitcoin Worldwide receives compensation with respect to its referrals for out-bound crypto exchanges and crypto wallet websites. You should also check out the sources the authors use to back up their claims. Look into things and don’t take everyone’s opinion as fact unless you can back it up with rock solid proof which can’t be torn down by opposing opinions. If they are real experts in your area of research, they will base their information on known and proven principles. When you can find the same key principles from multiple sources, you know you are on to something. If they have proven systems in place, are known by the community as legit, and don’t have ulterior motives, you can listen to what they have to say.

Top Cryptocurrencies

The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility. Blockchain explorers like Etherscan for Ethereum-based tokens allow you to view transaction data on the blockchain. This can be useful for verifying a coin’s circulating supply and transaction volume.

Analyze and benchmark project performance using numerous financial and non-financial filters and data points. Spending hours on research is useless if your sources are not high-quality. It seems like everyone is talking about cryptocurrencies because it is such a hot topic in the investment world. For your investigation, you must use reputable information sources, or you will be wasting your time. 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.

What does DYOR mean?

In simpler terms, you can be scammed, lose your savings, and get minimum to no returns on your investments if you end up investing without DYOR. Strategically investing means having complete knowledge of the past, present, and future of the asset you are acquiring. As already mentioned, security measures are very important and that is why any trader should be aware of the legal barriers to entry.

BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor. Sentimental analysis helps to understand investor behavior in such a highly speculative and volatile market like crypto.

Why is DYOR important in crypto?

Kaspa is another example of successful DYOR leading to significant returns. It was built by industry pioneers and is maintained by the Kaspa community. The acronym of Do Your Own Research — encouraging investors to complete due diligence into a project before investing. The first step here is to read around “the problem” elsewhere to check that it really exists, and then you can look for better-known platforms that might have solutions lined up already. You should also look at the whitepaper’s layout, writing style and professionalism.

The concept of DYOR aims to reduce misinformation and the investment pitfalls that come from relying solely on other people’s opinions or assurances. As you’d expect, FUD is quite common in the cryptocurrency space. In many cases, investors may enter a short position in an asset then release potentially harmful or misleading news when the position has been established. This way, large profits can be made by short selling or buying put options. They may also position themselves with over-the-counter (OTC) deals beforehand. Staying updated on the latest news is crucial when investing in cryptocurrencies.

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Technical analysis takes into account the historical movement of the crypto asset with charts of price and trading volume, as well as what the token has done. On the other hand, standard analysis focuses more on determining whether a coin’s value or value is higher, fair, or low. Particularly in the world of cryptocurrency, not all recommendations are made equal. One of the most crucial parts of DYOR is not to accept any advice or forecast you see on social media or to believe everything you read. There is a ton of cryptocurrency trading advice available online, much of it based on fraudulent advertising and, occasionally, pump-and-dump schemes. Investing in crypto without at least a basic knowledge of the tech and the problems to which projects are offering solutions is like flying blind.