DYOR net analyses the cryptocurrency market for you

If the project is already live, investors should compare the product presented on the white paper with what the project has put in place. If the project is already deviating from the initial design without a good reason, investors might want to reconsider their investment plans. A consistently high trading volume suggests a thriving project, and investors look out for this as proof of sufficient demand and liquidity as well. The trading volume of an asset shows the collective value of the asset bought and sold over a period of time.

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When you’re done reading, always consult other SM channels to try and get the full picture. What are reputable crypto focused news sites saying about the project, and has it been in the headlines recently. The website should share useful information about the key people behind the project.

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Beyond the overall 24 hour trading volume, you can also look into the 24 hour volume of specific asset pairs on individual exchanges listed on CoinGecko. A project’s financial metrics include data on the traded asset, liquidity, and supply mechanisms. You can use a platform like CoinGecko to do research on a project’s financial metrics, with https://www.xcritical.com/ all the necessary information in one place. It’s important to note that even the most rigorous DYOR is not a remedy for all ills. However, it’s important to remember that DYOR is not a one-time task, but an ongoing process. The crypto market is dynamic and constantly evolving, and staying informed about the latest developments is crucial.

  • The discussion is then bolstered by the additional network of social media accounts under the bad actor’s control.
  • It’s about making informed decisions based on facts and analysis, rather than relying on rumors or speculation.
  • Naturally, it is largely a matter of personal opinion, and CoinMarketCap has rarely been inaccurate in the provision of market data.
  • DYOR is there to remind everyone that investments are only as good as the research that goes into them — and even then, there is no guarantee of success.
  • The ease with which the miners earn this reward is determined by the network’s hash rate.
  • Always remember that the behavior of market participants can’t be accurately predicted.

If you don’t want to pay with your precious cryptocurrencies, you can pay with your credit card. From your dashboard, at the top of the page, click on the “Upgrade to premium” button. On smartphones, click on “Subscription” tab in order to get access to the “Upgrade to premium button”. MOON is an ERC-20 token on Arbitrum Nova used to reward Reddit users for quality interaction https://www.xcritical.com/blog/how-to-do-your-own-research-dyor-before-investing-in-crypto/ on the r/CryptoCurrency subreddit. To check DYOR Token’s price live in the fiat currency of your choice, you can use Crypto.com’s converter feature in the top-right corner of this page. If the vision sounds too difficult to achieve while no clear path to achieving it is offered, it could be a sign of an overly ambitious project that is less likely to deliver on its promises.

Social Channels

The vast and virtually unregulated crypto world poses significant risks to uninformed investors but also gives great opportunities to those who arm themselves with the right research. YouTube is much slower for real time information, because creating content takes considerably longer than just sending out tweets. However, YouTube is the best resource for in-depth content on your favorite projects, giving you a much deeper perspective and understanding of the topic, much more than any other social platform.

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Never FOMO (fear of missing out) in crypto, and if you do, chances are you are going to be taught a painful lesson. Never rush into an investment, especially if you don’t fully understand yet. Realize that we are still in very early days and that there will always be other great opportunities. Be curious about projects and get interested in the tech and the space in general.

DYOR Tool 1: CoinMarketCap.com

Before you can parse any of this data, you’ll need to find the smart contract ID for the project you’re dealing with. It will appear either on the project’s official website, the project’s OpenSea page, its white paper or even its GitHub page. Of course, that doesn’t mean that anyone who hypes up their project is a scammer. If the project is legitimate but weak, it might fail to deliver either way.

Opening a topic on even some of the most obscure tokens can yield a lot of responses and opinions based on first-hand experience. Naturally, you should take into account that all and any information sourced from Reddit is based strictly on subjective personal opinions. R/Cryptocurrency is a good qualitative, not a hard-data-based quantitative research tool. In addition to the above indicators, it is useful to study the price charts of coins/tokens to see how volatile they have been over a certain period of time. CoinMarketCap provides great interactive charts to zoom in to various time periods and study the coin’s price movements in more detail.

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It suggests that investors throw caution into the wind in fear of missing out on a great opportunity. It simply reminds investors not to trust everything in the crypto industry mindlessly. Consider if the asset is used for real-world transactions, and if there’s much potential for wider adoption. Here, it helps to look at the number of active users, daily transactions, and overall community engagement. Cryptocurrency technology and its markets are still relatively new, which means the pricing is still relatively volatile when compared to TradFi options such as bonds, stocks, or cash bank deposits. A number of factors can impact the value of a digital currency, including technological advancements, regulatory changes, and market sentiment.

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