DYOR is the term widely used in crypto which stands for “Do Your Own Research”.
DYOR is very crucial for any investor or trader while making any investment decisions in all financial markets but especially when it comes to crypto, your own analysis and research makes a huge difference. Doing research on your own helps you to understand market dynamics which lets you make sound financial decisions.
Artificial hype of a new token or coin is created by famous influencers in crypto but the said project do not have any substantial backing for further development or they may not have any intention of further progression after investors have made significant profits. So, without proper research, you shall not invest money in new tokens based on mere hype. Such tokens most of the time, crash overnight without any warning signs, making investors lose all their savings. DYOR helps you avoid any possible financial scam.
Every other day, new projects are being introduced in crypto sphere but not all of them are worth investing. You, as an investor, must make sure not to fall for “Rich quick schemes” by investing in these tokens.
Why is DYOR important?
DYOR is always recommended by financial gurus for many reasons.
- It helps you recognize fishy projects at very early stage.
- It enables you to acquire and analyze information about projects, that in turn can multiply your investment by 5 to 10x.
- With DYOR, you can help avoid media pressure of buying assets with zero real life value, which helps you protect your life savings.
- DYOR helps you with FOMO. ‘Fear Of Missing Out’ is the number one reason people lose money in crypto. DYOR teaches you to take sound decisions rather than merely relying on emotions.
As a newbie in trading, you might feel overwhelm in the beginning with a lot of information spreading on internet or social media. But if you DYOR, you are likely to make informed decisions regarding your investment.
How to DYOR in crypto?
- The very first thing you can do is to get your first-hand information from credible websites. Binance is the number one cryptocurrency exchange in the world with high credibility. CoinMarketCap is another important website for judging credibility of crypto assets.
- Another step is to access information from credible investors or traders who have worked in the field for years. You must be able to differentiate between a seasoned trader and an influencer who might be shilling certain projects for monetary gains. Information from credible sources help form better decisions in crypto.
- Make sure if you do not have enough information about a certain project even after doing much research, do not invest on mere promises of 10x or 100x gains. Instead, invest in projects which have been there for a while and have shown credibility over the years. Little profit is always better than losing everything to hype. Investing in coins like Bitcoin, Ethereum, ADA to start with can be a good judgement call.
- DYOR helps you to keep updated with market trends about coins that you may have invested in. As crypto market is highly volatile, projects might get revamped, development teams change, hacks or some other uncertainties may occur overnight so you should keep yourself updated with latest information to avoid losses.
DYOR in crypto is always advised as making your own decisions based on information available helps with better decisions.
