Do Your Own Research has to be one of the most popular phrases in the crypto community. If you’ve also been reading some of our previous posts, you definitely would have come across the “DYOR” phrase quite a number of times.
DYOR is commonly aimed at making sure you are properly informed and well educated about crypto and the ecosystem. However, when users are told to DYOR, oftentimes, ‘googling it’ just doesn’t cut it. You may even find loads of information available quite confusing or some outrightly misleading. This drops you into a deeper state of confusion.
Simply trusting what others say about a project or social media hype isn’t enough if you’re looking to trade crypto. You must do proper due diligence before committing your funds. So, how should you DYOR properly? Let’s explore.
How to DYOR
Get info from credible sources
First things first, you gotta make sure your info is from credible sources. There are so many websites, YouTube channels, forums, and social media platforms that provide information on crypto and various projects. However, some of these platforms could be sponsored by projects which make them biased while some are outright false information.
Sites like CoinGecko, CoinMarketCap, DeFi Pulse, etc. could provide you with up-to-date info on the project’s market cap, charts and trading activities. Crypto news outlets like Cointelegraph and CoinDesk. are also credible sources of information.
Project’s Website & Whitepaper
Visit the project’s website. Get acquainted with the brand and all the information they provide on their website. It is also very important that you review the project’s whitepaper. Cross-check the whitepaper info with the project’s blogs and other written material. Do they have any contradictions or missing pieces of info? Time to wear your critical thinking hat.
Get to know about the product or service. What are they offering? What are the fundamentals? Do they make feasible sense? Does the project focus on creating innovation?
Social media platforms like Twitter, Telegram, Discord, Reddit & YouTube are a major source of information for blockchain projects. Explore these various platforms to find out what users are saying about the project.
Follow the project’s socials. Read more info about them. Ask them questions on the platforms if you need clarity. Discord and Telegram in particular are great channels to directly ask questions and get answers from the team.
Get to know the founders of the project, follow them on social media. If they’ve got LinkedIn accounts, read about them there. Get yourself loaded up on lots of information about the project.
However, it is important to note that there are detractors on social media who create multiple fake accounts to peddle false information or have plans to trick investors into a project. Be on the lookout for that.
Talk to Friends
This is the part where you reach out to friends who are also active in the crypto ecosystem. Find out what they know and their sentiments about the project.
Are all these enough?
While the steps highlighted above are some of the basic steps to DYOR, you should know that DYOR is always continuous. Research never ends. Always keep asking the right questions and stay logical.
The crypto ecosystem is a dynamic one, and as such, new trends pop up every now and then. DYOR keeps you updated and informed so you can make better decisions in your crypto life.