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My friend recently lost $500 that he had invested in a cryptocurrency project because he had not done enough research about the project. The project got hacked because they had not done any security audits, and the community was affected.
Ways of doing research #dyor
Research the cryptocurrency:
Read whitepapers, check the coin's website and social media presence. Find out what problem the coin is trying to solve and what the team behind the project looks like. Be sure to check the coin's track record and past performance.
Check the project's website:
Start by visiting the project's website and looking for information about the team. The website should provide details about the team members, their backgrounds, and their roles within the project.
Check the market capitalization:
The market cap of a cryptocurrency refers to its total market value, calculated by multiplying the coin's price by its total circulating supply. The larger the market cap, the more stable the coin is likely to be.
Look for team members' profiles:
Search for the team members' profiles on LinkedIn, Twitter, and other social media platforms. Review their profiles to gain insights into their professional background and experience.
Check for security reports:
Most reputable cryptocurrency projects will list any audits that have been conducted on their website. Look for a section labeled "Audits" or "Security" on their website, which may include links to audit reports or summaries of the findings.
Choose a reputable exchange: Ensure you are using a reputable exchange like binance to buy and sell your cryptocurrency. Look for one with a good reputation, strong security measures, and positive reviews.