Bart test - 23 March 2022
DYOR: Research and knowledge
Doing Your Own Research (DYOR) isn’t only applied to cryptocurrency, but to most things in life. If you want a clear understanding of what you are getting yourself into, reading and gaining knowledge is of utmost importance. It’s exactly the same as reading and knowing your job contract before signing it. Knowing the project you are investing in and being able to explain why you do it to others makes them understand: ’okay this person is solid on their choice.’
Since there is also a lot of misinformation out there, it’s necessary to know what is genuine. Listening to others shouldn’t influence you either, follow what you have researched and make sure you can back it up with valid points. Knowing what you are investing in and what project the cryptocurrency has are important factors before trading.
This blog will explain what is shilling, where to do your research, the common mistakes that are made while researching, questions to ask and what elements to look for.
Cryptocurrency has a lot of terms to get familiarized with. Shilling is on the top list. You can almost compare it to a salesman trying to sell you a product they highly believe in. Shilling is when a person advertises a coin they are invested in with hopes that others start buying it, which in turn affects the cryptocurrency price.
The only small issue when people shill, is the beginners don’t know if it’s just a sales act or that it’s a genuine unbiased post. This is where DYOR (Do your own research) comes in.
A lot of people when starting off with something new turn to others who have more experience for advice. When trading or investing in crypto the best decision is your own. We would like to highlight that patience is an important virtue in cryptocurrency.
Most of us start with cryptocurrency with the aim of getting rich fast. Making big gains overnight isn’t really realistic. It takes time to build knowledge just as some coins take time to rise. Remember before you start trading or investing in crypto, always read and start with basics.
Learning anything new always comes with obstacles to go through. For some, it may be easy for others it will cause struggles. With any sort of research finding out, factual information may be difficult. As crypto is constantly changing and being developed some coins maybe be difficult to understand. As explained in one of our previous articles: do not have FOMO.
Along with your research, you might encounter some moments where nothing makes sense, but let’s be realistic that can happen with anything. It takes time to read through the project, understand it, and have answers to your questions. Don’t hurry up and take your time. Remember, sometimes you’ll encounter some negativity as well, learn to put that aside to not cloud your judgment.
There are a few resources that may help you with your research. We will mention a few that you should definitely study and understand.
Coin Market Cap: cryptocurrency market and price capitalization website ( Market cap database)
Medium: website used for independent commentary and many projects are explained through articles and blogs. Another forum called Reddit (r/cryptocurrency) is considered one of the bigger communities where the blockchain space is thriving, but be careful to not be driven by FOMO.
Whitepapers: If you want to really delve into more technical and detailed information about cryptocurrency.
To understand a topic, questions must be asked. Now here’s the most important part, the questions you ask have to give you reasonable answers. Google is your best friend. Remember to invest time in doing your own research. It’s just as important when you invest in crypto. We will provide you with a list of questions that we think are important.
What is the development history and future of the coin(project)?
How decentralized is it?
What are the main features of its blockchain?
Does it solve a problem?
What are the differences from its competitors?
What is its market cap?
Does it have a solid roadmap?
What are its red flags if there are any?
Does it have a strong social media and marketing presence?
Before investing and trading understanding what you are putting your money in requires time and patience. Never rush and jump into a project just because everyone else is. Be on the lookout for what sources you’re acquiring your information on the cryptocurrency. Ask questions and find your way of organization that works for you. Remember the most important rule before investing and trading: Don’t spend more than you can afford to lose!