DYOR is a famous phrase in the crypto sector, and it stands for ‘do your own research.’
It is not just an acronym but a piece of solid advice to all crypto enthusiasts who want to make it in the market. Conducting extensive research before committing to investing in any asset is paramount. In the information age, DYOR significantly reduces the number of uninformed traders and investors in the cryptocurrencies, NFTs, and blockchain spheres.
DYOR is crucial in eliminating some of the ills accompanying crypto investments, such as Shilling and Sybil attacks. Shilling refers to the false advertisements by coin owners to positively influence prices. With adequate DYOR, an investor can easily differentiate an unbiased post from a shill. On the other hand, Sybil attacks are common on social media, where people create numerous accounts to entice investors into buying crypto based on popular posts on social interaction platforms.
So what is DYOR all about, and how does an investor go about it? Below are some factors to consider when starting a crypto research process.
Get Information From a Trustworthy Source
As a fast-growing sector, crypto has got a lot of information and a lot of misinformation. When researching, investors need to find credible sources, such as reputable research firms, established news media outlets, and established individuals with a strong track record.
Get Different Opinions
Sticking to a singular source of information may not be the best strategy for DYOR. Investors need to broaden their research portfolio since the more different opinions they get, the better their chances of making sound crypto investment choices.
Pick the Correct Cryptocurrency to Invest in
One of the critical reasons for DYOR is to pick suitable cryptocurrencies to invest in. There are various factors to consider before settling on a prospective cryptocurrency investment. Some include utility, market cap, competition, trading volume, liquidity, circulating supply, and total supply.
Now let’s look at some ideal places where a trader can do their research.
- Social Media Platforms
Crypto being an exceptionally time-sensitive affair, looking for new updates on social media pages can be a great idea. It can help novices without prior crypto knowledge. Some of the platforms for DYOR are Twitter, Reddit, Discord, and Youtube. However, it is essential to note that not everything on social media is accurate. Traders should be skeptical and compare their research with other sources.
- Crypto News Outlets
Numerous reputable news outlets in the market today are specifically dedicated to giving high-quality information about cryptocurrencies.
Discord is an app where crypto enthusiasts interact to discuss specific topics in the industry. On Discord, tens of thousands of users message, video chat, and make voice calls to each other about burning crypto issues. The key is to find the right Discord servers and channels to your hands on high-quality information.