DYOR stands for “do your own research,” and it’s one of the most important things you can do before investing in any crypto project. Here’s how to get started:
– Join the project’s Discord and Twitter servers to get a feel for the community and the team.
– Look for known people in the crypto space who are involved in the project. This could include investors, advisors, or developers.
– Be wary of projects with a lot of hype and shillers. It’s better to find a project with a smaller, more engaged community.
– Check the project’s market cap on DEXTools or another reliable source. A low market cap can be a good thing, as it means the project has more room to grow. However, it also means the project is more volatile and riskier.
– Look at the project’s trading volume. A high trading volume indicates that there is a lot of interest in the project. However, it’s important to note that some projects can manipulate trading volume.
📺Website and whitepaper
– Read the project’s website and whitepaper carefully. Make sure you understand the problem the project is trying to solve and how it plans to do it.
– Look for clear and concise language. If the website and whitepaper are poorly written, it’s a red flag.
– Understand the project’s tokenomics. This includes the total supply of tokens, the distribution of tokens, and the use cases for the token.
– Be wary of projects with a high token supply or a large percentage of tokens held by the team.
– Review the project’s roadmap. This should outline the project’s development plans and milestones.
– Make sure the roadmap is realistic and achievable.
– Be wary of projects that promise guaranteed returns or high yields. These are often scams.
– Do not invest money that you cannot afford to lose. Crypto is a volatile asset class and there is always the risk of losing money.
DYOR can be time-consuming, but it’s essential if you want to make informed investment decisions. By following the tips above, you can reduce your risk and increase your chances of success.
Bonus tip: Join a crypto research community. There are many online and in-person communities where you can learn from other investors and get help with your research.