This article tackles:
The importance of DYOR.
Ways of practicing DYOR before investing in cryptocurrencies.
Before I set the ball rolling, let's recall an earlier feed where I talked about DYOR, I'll drop the link for reference purposes.
https://www.binance.com/en/feed/post/356265?ref=39939772&utm_campaign=app_share_link
If you look closely at the afore-cited media, Binance explicitly added it to her disclaimer. So what is this DYOR everybody seems to be using?. DYOR is a popular crypto term that means "do your own research". Unfortunately over 90% of crypto investors do not do their research and ultimately end up losing huge chunks of their funds.
The importance of research methodology while investing into cryptocurrencies can neither be over emphacised nor under emphacised. Research is a powerful tool for investors because it keeps you aware of the various risks as well as the potential rewards sometime in the future, now let's look at some importance of #dyor .
Importance of DYOR
Basic knowledge of the asset(s) involved:
After research, it's easier for investors to relate with one another, ask questions and also give answers to questions surrounding the project/asset, e.g the asset name, the network it's built on, the major use cases et cetra.
Advanced knowledge of the asset(s) involved:
A deeper delve and inquiry into the nature of an asset keeps an investor 5 steps ahead of other investors. Research is a never ending process, especially given the nature of cryptocurrencies and the technologies involved. Some advanced knowledge include, tokenomics i.e the token-economics including supply, market capitalisation, token emissions et cetra.
When an investors does his research, he keeps track records of the performance of an asset, which can happen in different ways. Some investors prefer to see a project go through hurdles and come out strong before investing. They use this strategy as a standard of measurement for projects.
Recall that this research is never ending, hence, an investor is up to date concerning the activities of the team behind the project as well as what they're building. This will project his expectations of the asset's performance, either to the upside or the downside overtime and ultimately afftect his decision.
One popular saying is that information is power. With the information at the finger tips of an investor, one would not panic-sell nor panic-buy irrespective of popular #fud and #fomo mechanisms.
Having looked at some of the importance of DYOR, we need to know how to actually DYOR by ourselves. Some investors see it as a Herculean task. It is however indispensable irrespective of the arduous nature of this process. Now let's look at some ways of practicing DYOR in cryptocurrencies.
Ways of Practicing DYOR In Cryptocurrencies
1) Investors must utilize coin tracking apps such as coinmarketcap, coingecko et cetra.
These apps have vital information concerning different coins. Some of the information contained are;
The total supply
Circulating supply
Market Capitalisation
Fully Diluted Valuation
Project Team
Project Website
Social Media Handles/Links
Markets to Trade
Asset Price
Trading Volume
Et cetra
Basic steps to DYOR
Go to coingecko.com or coinmarketcap.com
Search any coin
Access the information
2) Investors must also utilize the twitter social media app. How?
Use the $ ticker as well as the # tag to search how much the coin is trending and being talked about. Eg, search $btc or #BTC to know how much Bitcoin is being talked about.
Follow the project's social media handle and keep up to date on the day to day activities of the project. Their telegram and discord for everyday chat and their twitter for engagements.
3) Search their website for the project's roadmap and whitepaper to be sure of the blueprints.
These and many more are some of the various steps investors should take when it comes to investing in cryptocurrencies.
