#FeedFeverChallenge

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.

Note, a silly and absurd situation happened again today, supposedly because the U.S. government started selling BTCs that are associated with the Silk Road, the price began to drop rapidly.

In the end - it was quickly disproved, but the news has already had such an effect that everyone knew what caused this fall in #BTC  

Once again, I would like to say that any news that is published to the masses is already priced in, because the privileged participants know the information before its official release.

And ordinary people, which you and I are - have already seen and recognized this news at the very bottom of this fall, where someone in a panic could just sell, because his mind is now filled with the slogan "sell in may" and various other negative factors that are hovering around the market at the moment.

And so, when the common people in the market have said goodbye to their positions, the news rebuttal and further recovery begins, which we are also seeing at the moment. And the news is only there to "explain" why there was a rise or fall, because everyone needs the argument, and without the argument, the price can't rise or fall, right?

#fud #crypto2023 #Binance

FUD is an acronym that stands for Fear, Uncertainty, and Doubt. It is a strategy that is often used to create a negative perception of a competitor's product or service in the minds of potential customers. By spreading misinformation, exaggerating the risks associated with a product, or using scare tactics, FUD seeks to discourage customers from considering a competitor's product or service. In this article, we will explore FUD in detail, including its examples, creation, use, spread, caveats, dealing with FUD, reducing FUD in others, and its origin and history.

Examples of FUD:

FUD can take various forms and can be found in different industries. Here are some examples of FUD tactics:

A computer company spreads rumors that a competitor's product is prone to crashing, viruses, or data loss.

A political campaign spreads misinformation about a candidate's background or positions to create doubt in the minds of voters.

A financial institution implies that a competitor's investment products are risky or poorly managed.

A health supplement company suggests that a competitor's product is unsafe or ineffective.

How FUD is created and used:

FUD is created and used by casting doubt or fear in the minds of potential customers about a competitor's product or service. FUD can be created through various means, such as spreading rumors or misinformation, exaggerating the risks associated with a competitor's product, using scare tactics or emotional appeals, and highlighting weaknesses or vulnerabilities in a competitor's product. Once created, FUD is often used in marketing and sales campaigns to discourage potential customers from considering a competitor's product or service.

How FUD spreads:

FUD can spread rapidly through various channels, including word of mouth, social media, and traditional media outlets such as newspapers, television, or radio. People tend to share negative information more than positive information, and FUD can quickly spread through conversations. Social media platforms provide a powerful way to spread FUD, especially through targeted ads or influencer marketing.

Caveats about FUD:

While FUD can be effective in the short term, it can also backfire if customers perceive the tactic as dishonest or manipulative. Using FUD excessively can damage a brand's reputation and lead to long-term customer distrust. It is crucial to strike a balance and use FUD tactics ethically and responsibly.

How to deal with FUD:

To deal with FUD, it is essential to remain calm and avoid making emotional decisions. Verify the information presented and seek out additional sources if necessary. Evaluate the credibility of the sources presenting the information and consider the motives behind the presentation of the information. Focus on the features and benefits of the product or service being offered.

How to reduce FUD in others:

To reduce FUD in others, it is important to present clear and accurate information about your product or service. Address customer concerns directly and transparently. Provide evidence or testimonials that support the claims being made. Build trust with customers through excellent customer service and reliability.

The origin and history of FUD:

The term "FUD" is believed to have originated in the 1970s within the computer industry, where it was used to describe the tactics used by IBM to discourage customers from buying competitors' products. FUD has since been adopted by various industries and has become a common marketing and sales tactic.

Summary and conclusions:

FUD is a tactic used to create doubt or fear in the minds of potential customers about a competitor's product or service. FUD can be created and spread through various channels, including word of mouth, social media, and traditional media outlets. While FUD can be effective in the short term, it can also damage a brand's reputation and lead to long-term customer

#educational #Binance #crypto2023 #fud #crypto

Wash Trading is a method of trading where large asset holders trade among themselves, creating the illusion of activity and misleading retail investors.

The mechanism is simple: alternating red and green candles. Wash trading is used for two main reasons:

- Creating the appearance of activity or demand for a particular currency/trading pair.

- Artificial increase in trading volumes to pay exchange commissions under the guise of trading operations.

A great example is the NFT.

The year 2021 was marked by a boom in NFT.

According to ChainAnalysis, at least $44.2 billion was transferred into ERC-721 and ERC-1155 contracts, opening up opportunities for Wash Trading and money laundering through self-financed transactions. NFT purchases were often made by sellers or their sponsors. There were several hundred such transactions.

Pump & Dump

The classic approach: disseminate information that creates expectations of asset growth and increases demand. When the price reaches the right level, the scheme participants sell off their assets, making money on inexperienced investors.

The basic methods of provoking a pamp and a dump:

- Hype: loud statements about "the next bitcoin" or "Ethereum killer" create optimism among investors, but in 95% of cases it is just speculation and more of a warning signal.

- Price spikes: If a little-known token increases in price quickly, you should be cautious. Parabolic growth can be a trap for retail investors.

- News cycles: positive news coincides with big buys by big players, creating a sense of successful news trading and "whale insiders," which motivates retail investors to buy.

Examples of Pump Events:

— Crypto.com is being promoted at the Super Bowl.

— Tesla buys BTC.

— Coinbase is going public.

— Elon Musk changes the Twitter icon to Dogecoin.

All of this news is designed to create excitement and stimulate impulse buying by retail investors.

Bear Raid

The essence of this tactic is that large market participants open short positions and start spreading negative information about the asset, creating FUD (fear, uncertainty and doubt).

If FUD is in effect, investors panic and close long positions, effectively becoming "fuel" for short-termers.

A typical pattern of a bear raid is as follows:

- Running FUD.

- Opening several large short positions.

- Maintaining panic among investors.

- Profit Fixation.

To counter this type of manipulation, it is important to use a variety of sources of information and to distinguish substantiated negativity from FUD.

Spoofing is a method of manipulation that involves placing false orders that are canceled before they are executed.

Since the number of buy and sell orders is one of the main trend indicators for traders, bogus orders can provoke decisions that benefit the manipulator.

Example: On May 6, 2010, the news about the Greek crisis in the EU began to be actively discussed.

But suddenly the U.S. indices fell 10% in a matter of seconds, causing a momentary panic. A few minutes later, prices recovered as if nothing had happened.

The main goal of participants in financial markets, including cryptocurrency markets, is to make a profit.

However, different players use different methods: some achieve their goals through research, mistakes and long-term strategies, while others deliberately deceive investors to manipulate prices and make easy and quick profits.

To be successful in the crypto market, it is important to be able to resist manipulation, rely on verified information, and conduct in-depth analysis when making decisions.

#fud #BTC #crypto2023 #dyor #trading