DYOR is an acronym meaning “Do Your Own Research”. It is often used among cryptocurrency traders and marketers to encourage them to take full responsibility for their investments decision. If you want to know more about doing your own research and how to do your own research, scroll down with me as I would be sharing 3 ways to do your own research so as not to make wrong investments.
What Is DYOR?
Do Your Own Research (DYOR) is a popular phrase among cryptocurrency enthusiasts. The acronym, however, is not a piece of advice unique to the cryptocurrency ecosystem. Because of how quickly and easily misinformation can spread on the internet, it is widely used.
DYOR is derived from the Latin phrase “caveat emptor” which means “let the buyer beware.” Buyers must accept responsibility for thoroughly researching each purchase they make. This term first appeared in the cryptocurrency market in 2017, when a wave of initial coin offerings(ICO) appeared, as companies sought to jump on the crypto hype train to create new coins, services, and platforms to meet rising demand.
While the majority of these companies were legitimate and genuinely contributing, there were also many scams that created fake coins and platforms to take advantage of investors’ lack of understanding of the volatile market.
As a result, DYOR serves as an important reminder to investors not to increase their risk of falling victim to such scams by blindly trusting online investment opinions and tips.
Instead, they should conduct background research on the product they want to invest in and evaluate each investment based on their risk tolerance and investment goals.
How To DYOR
The primary reason for conducting your own research is to expand your investment knowledge of available coins in the market, particularly those cryptocurrencies in which you wish to invest. Investing without this knowledge is almost certain to result in a loss. In a high-risk, high-return market like cryptocurrency, it’s even more critical to do thorough research before investing to avoid huge losses. Here are a few ideas for DYOR:
Understand the Cryptocurrency
To understand the cryptocurrency you want to invest in, you can DYOR by studying the white paper on the cryptocurrency. Each coin developed and issued on a platform will include a white paper that explains why the coin was created and highlights its features, technology, and solutions. You can also use the white paper to investigate the backgrounds of developers to determine their credibility.
In addition, look over a product’s road map to see if the team’s milestones and plans are feasible and attainable. Simultaneously, it may be beneficial to check their credit scores using an audit available from online reviewers such as CertiK, so you can assess their financial health and ability to meet the milestones they intend to achieve.
Review Technical Charts
As with stocks, there are tools available on websites such as Dex.guru to help you read and understand the technical graphs of cryptocurrencies, which reflect the current prices of cryptocurrencies. These technical charts are useful for tracking the progress of cryptocurrencies and identifying trends and patterns in previous price fluctuations. These tools may assist you in making investment decisions and timing.
Stay Updated on Social Media and News
Because cryptocurrency is a digital product, information about it is easily accessible online. Each network may have its own social media platform where it distributes news, information, and updates about its native coin. As a result, staying current with some social media communities such as; Telegram, Reddit, Facebook, Twitter, or even Clubhouse — is beneficial in keeping up with the coin’s current updates, future plans, and outlook.
Why is it Important to Do Your Own Research?
Shilling is a common cryptocurrency practice in which people advertise the coins they own in the hopes of positively influencing the price. It can be difficult to tell the difference between a shill and an unbiased post. Before investing in any cryptocurrency, it is recommended that you make your own decision, not just because someone else says it is worth it.
Sybil attacks are also common on social media sites like Reddit, Twitter, and Facebook. People with malicious intent can quickly create a slew of fake accounts in order to dupe investors into purchasing a cryptocurrency based on a “popular” post on a social media platform. However, it is not always easy to identify fake accounts, so it is important to remain skeptical and DYOR.
Nobody knows which investments will be profitable in a volatile market like cryptocurrency. While crypto investment opinions and tips can be useful for reference, everyone has different reasons for investing, so it’s critical to DYOR and make your own informed decisions, with calculated risks that match your risk appetite and crypto investment goals, rather than relying on someone else’s advice for your crypto investment because of their success.