DYOR or Do Your Own Research is your philosophy once you’re into crypto. It’s an essential part of your daily routine, a pivotal point of your investing and trading escapades, and just something that helps you always be on the same wavelength with the latest crypto trades.
Everybody is talking about this DYOR thingie, but do they really know how to do it? Time to put two and two together for the sake of a better understanding.
Analyze, Analyze, and Analyze Again
That’s not easy to invest in, especially when you don’t fully understand the field. But, all of a sudden, this particular point makes future research even more fascinating.
Your research could be profound to include the following aspects:
- Fundamental Analysis
- Technical Analysis
- Social media Analysis
- On-chain Analysis
DYOR in crypto demands various information gathering and filtering, which can be pretty harsh thanks to the crypto market full of red flags not easy to notice. DYOR gives you what’s an opportunity to embrace what’s happening in the crypto community and grants you the tools and sources essential for proper decision-making.
Combined, these analysis practices can help you interpret market data and give you various aspects that will guide your trading.
Here is the list of the most effective analysis practices for traders of all levels to do their research.
Useful Analyzing Tools
CoinMarketCap is known worldwide for crypto market intelligence and research. It has deep market information on almost all the existing coins and tokens. It provides you with information diverse and topical information with any possible details. However, many new aspiring investors may be embarrassed by figuring out what to pay attention to.
The most interesting point for you is coin and token rankings regarding market capitalization or 24-hour trading volume. Later, you may look at information about specific tokens that you’re interested in. CoinMarketCap provides up-to-date information on each token or coin: the market cap, fully diluted market cap, trading volume, circulating supply, and the maximum supply allowed for the coin/token. These are the primary information you need in the first stage of becoming familiar with different currencies.
Studying the price charts of coins/tokens is also helpful to see how volatile they have been over a certain period. CoinMarketCap has amazing interactive charts to zoom in to different time periods and study the coin’s price movements in more detail.
As you know, most crypto and blockchain projects are decentralized finance (DeFi) applications. It will be very useful to know their TVL (Total Value Locked) statistics, not only the token's market cap, circulating supply, and other crucial indicators.
TVL means the total amount locked in the platform's smart contracts, generally in the form of debt collateral or liquidity pool funds. It is a critical measure of a DeFi project's performance.
DeFi Pulse is a crypto research and news website that traces TVL stats for the most significant DeFi projects. While the website is a good source for general information about crypto and blockchain, its awesome feature is the up-to-date TVL stats.
CryptoCurrency on Reddit.com
Reddit is famous for being the biggest discussion forum, with a diverse web of subreddits dedicated to various topics. r/CryptoCurrency is Reddit’s most prominent crypto and blockchain discussion board where you can find anything on crypto: starting from anecdotes to currencies people find the best for investing and trading at the moment.
This channel can be not only entertaining but also serves your DYOR aims, r/Cryptocurrency is an essential tool to get the freshest insights from various blockchain projects. All crypto projects, even small ones, are being actively discussed there.
Reddit can be pretty fruitful for your research in terms of asking people’s opinions who have been directly involved in crypto projects or have had experience buying cryptocurrencies. Crypto-related websites give you statistics on market caps, prices, charts, and other important metrics, but Reddit complements that with a unique experience of interacting directly with people about blockchain projects.
Starting a discussion on even some tiny projects can bring you a lot of responses and opinions underpinned by first-hand experience. Yet, don’t forget that any information from Reddit is generally based on subjective personal opinions. r/Cryptocurrency is a nice qualitative, not an academic-ish quantitative research tool.
NB! While reading opinions on Reddit, bear in mind the “shilling” phenomenon. Shilling means users provide untruthful, often promotional information to persuade others of their project’s cool and valuable.
TradingView is a platform built for investors and aspiring investors to share their experience, knowledge, opinions, and analysis on traditional finance and crypto investing topics. One of the platform's most fruitful features is community members' great charts to supply to the website.
This resource is ideal for accessing tailored analysis accomplished by the platform’s users into different crypto assets. Many users share high-quality technical analyses on cryptocurrencies and tokens.
Google Trends is a free research tool by Google. It displays the popularity index and trend over time for any word or phrase searched for on the website. You can use it for tokens and coins to check on their popularity and being in trend just using their tickers.
It is a great tool to monitor public interest in various tokens or cryptocurrencies. Google Trends allows you to customize your search results to specific countries and periods. Compare two or more search terms on the same chart if necessary.
Crypto Project’s Blogs and Channels
We can’t imagine a proper DYOR without carefully studying a blockchain project’s website and social media pages. Maybe that doesn’t look as serious and kind of snobbish as the mentioned recourses, but still, it could be a rich source for learning and getting new information. Have a look at the project’s website to find out critical information such as:
- The team behind the project, including the founders. Some projects provide many details about the people involved. The lack of information may also tell you something about the project, as less transparency may require further scrutiny.
- A fully-described process of how the platform or application runs, including its tokenomics. You can find such information in the project’s white paper.
- The project gathers venture capital.
- More information on ownership, voting, and yield-earning rights token gets to its holders. That’s also described in the project’s white paper.
- Wallets and exchanges that listed the project’s token.
Things to Consider While DYOR
Shilling is common in cryptocurrency, where people push their products in the hope of increasing their prices. It can be challenging to distinguish between a shill and an unbiased post. Deciding on your own before investing is advised when purchasing any cryptocurrency, not just because someone else has said it is worth it.
Sybil attacks are ‘expected’ guests on popular social media platforms such as Reddit, Twitter, and Facebook. People with malicious intent can quickly create numerous fake accounts, trying to make investors buy a cryptocurrency based on “popular’ posts within a social media platform. Another moment when it’s better to stay skeptical and do your own research.
Let’s sum that up. Doing your research may seem tedious, but it’s your key to success, and neglecting DYOR would be a bad idea. The crypto space is still terra incognita for many, and people are collecting pieces and bits of information from various resources to understand better what is going on and how to invest/trade smartly.