A Comprehensive Guide to DYOR

Investing Guides

Last Updated: November 7, 2022

A Comprehensive Guide to DYOR

Before investing in any crypto project, it's important to do your research. Putting in some time and effort to understand your crypto projects, can get you very far.

That's what DYOR is all about - doing your own research. But what does research mean? Where should one start?

Here's everything you need to know about DYOR.

What is DYOR?

While it's not particularly exclusive to crypto, DYOR is a common practice used by crypto enthusiasts, which stands for Do Your Own Research.

This refers to a whole set of practices used to make successful investment decisions. DYOR is about carrying out your due diligence, encouraging investors to gather the right information, and acquiring the needed market intelligence to reduce the number of uninformed investors in crypto markets.

It's vastly important for investors to understand the market so that they can answer precisely why they are buying that currency and supporting that project.

Why is DYOR Important?

In the cryptocurrency sphere that is rapidly growing and ever-changing, it’s important not to get lost. And, it is not a secret that there are people who tend to advertise the coins that they own in hopes of positively affecting the price.

It can be difficult to know what information is true and what is false. Especially when crypto flourishes in a fast-paced environment that is social media where the flow of information never stops.

It is hard to distinguish the lie from the truth but to stay safe and make secure investments, it is vastly important to know your stuff.

How to DYOR?

While at first the whole concept of doing your own research seems uncomplicated, when you think about it - it’s hard to know where to start. Here is a guide to the key DYOR practices commonly used by experienced crypto enthusiasts.

Identify what type of information you need

The first step of any research is to find out what kind of information you need. Do you need an overview of the whole market? Do you need in-depth information on a particular project? Determining what kind of information you need is important because different aspects require different informational sources.

If you don't know where to start, think about what projects you'd be the most interested in and start there.

Locate the best sources of information for your research

There are a lot of places to search for information on crypto out there. However, not all sources are so trustworthy. Check for reliable and objective sources for your research.

In the crypto industry, everyone can state their opinion. And pretty much everyone does. So, knowing what sources are dependable is important. There's no point in spending time and effort on sources that don't know what they're talking about.

There are various sources to check for information, from influencers to news outlets, but here are a few things you should consider:

  • Is the source well known in the industry? Popular sources tend to be more reliable and provide different sides to the information.
  • What does their track record say about them? If the source has some dark shadows in their history, you should vary.
  • How big is the following? Sources with a solid following can be more reliable since they have a lot to lose for spreading bad information.
  • Is the source is legit and established? Sticking to the most popular news sites can ensure you are getting quality information.
  • Does the source benefit from this information? If an influencer is getting paid by the brand they're talking about, chances are they probably aren't that honest.
  • Do they provide balanced information? Good and quality sources always provide both sides of things. They talk about pros as well as cons.

However, even if the source seems very reliable - NEVER BELIEVE EVERYTHING YOU READ! As trustworthy as a site or a person may seem, you should always stay cautious and keep your common sense on.

Get different angles and opinions

Although over time you might find some trusty information sources you like - favorite sites, influencers, you should never get all your info from one source. One of the most common DYOR practices - get different angles. Always try to use a variety of sources and tools to check the information. 

This way you'll broaden your perspective and will be more immune from making a bad decision.

Ask the right questions

For proper research, you should know what kind of information to look for. While at first, all the different data and information may seem like a headache, after a while you'll get used to it and know what the data means.

For the newcomers, here's a checklist of what you should look at:

  • How did the project develop?
  • What are its plans for future development?
  • What is the history and reputation of the team?
  • Does the project solve some current problems in the market?
  • How different is the project from its closest competitor?
  • How big is the target market?
  • Any legal barriers to entry?
  • How is their marketing and social media presence?
  • How concrete is their roadmap?

DYOR tools and sources of information

One of the key takeaways of DYOR is to find reliable sources of information. Here are some of the most common sources to start with:

  • Market capitalization databases: These are great to know the overall state of the current market. Coin Market Cap is the most popular website for this.
  • ICO calendars: ICO calendars are curated calendars of new token sales. An example of an ICO calendar is Tokenmarket.
  • Forums: Forums can be a great place to find different opinions on the topic. Reddit is probably the biggest forum not only in the crypto community but the whole internet.
  • News outlets: News outlets can actually be a great place to find balanced opinions. And it’s not only crypto news but mainstream media too.
  • Social media platforms: Crypto information is time-sensitive, and social media is often the best place to start, especially for beginners.
  • Whitepapers: If you’re looking for a deeper dive into a particular crypto project, it’s worth looking at its wallpaper as it carries a lot of important data.

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