DYOR stands for Do Your Own Research: technology, team, market sentiment historical charts, volatility, TVL and trading volume.

January 11, 2023

How can I do my own research when investing?

DYOR stands for "Do Your Own Research." When it comes to researching cryptocurrency investments, there are a few key things to keep in mind:

  1. Understand the technology: Read the whitepaper and understand how the product works and what problem it is trying to solve.
  2. Look at the team: Look at the team behind the project and their experience and track record in the industry.
  3. Analyze the project's development: Look at the project's development progress and see if they are regularly updating their code and releasing new features.
  4. Review the community and social media: Look at the project community and social media presence to get a sense of how excited people are about the project and how well the team is communicating with its followers.
  5. Check the market sentiment and trends: Look at the overall sentiment and trends in the cryptocurrency market and see how they might impact the value of the specific project you're researching.
  6. Look at the current and historical charts, volatility and trading volume.

Always keep in mind that the crypto market is highly volatile and news and announcements can drive the market up or down, which is why DYOR and diversifying your investments are important.

1- Read the Whitepaper and understand what is all about

When it comes to understanding the technology behind a cryptocurrency, reading the whitepaper is a good place to start. A whitepaper is a document that provides a detailed overview of the project, including its goals, features, and technical specifications. The whitepaper should explain how the project works, how it is different from other projects, and what problem it is trying to solve.

It's important to understand the underlying technology that the project is built on, as well as any other technical details such as consensus mechanisms, smart contract capabilities, and privacy features.

It's also important to consider if the technology is unique, innovative, and have real use cases which can support the token value, and to check if it has any patents or trademarks.

Additionally, pay attention to the scalability, security and regulatory aspects of the technology and how well it handles these in the long run, especially as the adoption increases.

This can give you insight into its potential for success and its ability to solve real-world problems. 

2- Team

When researching a project/startup, it's important to take a look at the team behind the project. A strong team can be a good indicator of the project's potential for success.

Here are a few things to look for when researching a project's team:

Keep in mind that a strong team does not guarantee success but it can give you more confidence in the project, a weak team can imply the opposite and increase the risk for the investment. Take into account that there have been cases where the team members have not been truthful about their identities and experience in the past, so it's important to be cautious.


3- Development updates 

You should check the project's development at this point. A project's likelihood of success can be determined by how frequently new features are being developed and released.

When tracking the advancement of a cryptocurrency, keep an eye out for the following:


4- Socials indicator

Have a sneak peak to the project's community and social media presence. The level of excitement and engagement within a project's community can be a good indicator of its potential for success.

Here are a few things to look for when researching a cryptocurrency's community and social media presence:


5- Market sentiment

Become familiar with market developments and general sentiment around cryptocurrencies. Value of a particular token can be significantly impacted by market mood and trends.

When investigating the mood and tendencies of the market, keep an eye out for the following:


6- Historical Data (volatility, volume, price, liquidity, TVL) 

Now take a look at the current and historical charts, volatility, and trading volume. These factors can give you an idea of the coin's performance and how it is currently being traded.

Here are a few things to look for when researching a cryptocurrency's charts, volatility, and trading volume:


It's important to note that cryptocurrency is speculative and not suitable for all investors, you should always ensure you have a good understanding of the investment before putting any money in.

Great job on learning something new today 🎉