How To Do Your Own Research DYOR On Cryptocurrencies

To research cryptocurrency in even more depth, check out our article on the three types of cryptocurrency analysis. Research the coin – Read the whitepaper, review the team, and examine the network effects. “Do your own research.” Or, simply, “DYOR.” It’s an acronym you see a lot in the crypto and overall investment space. The Laser Eyes meme started out as a show of enthusiasm and community bonding during bitcoin’s journey up to $100K. Several Bitcoin community members decided to add laser eyes to some friends’ avatars in hopes of fueling the entire crypto community to push bitcoin’s price to a new ATH. It’s no wonder that those eager to learn will seek other, more experienced crypto market participants, engineers, analysts, and traders to help fill in the gaps.

Team – Terra was founded in January 2018 by Daniel Shin and Do Kwon. Kwon then took on the position of CEO of Terraform Labs, the company building Terra. Both have proven successful as entrepreneurs, while Kwon also worked as a software engineer for Microsoft and Apple. They have both the technical and business expertise to build a successful crypto project.

Why is DYOR used so commonly in the crypto community?

Initially a misspelling of the word “hold”, now it’s embraced by the community to mean “hold on for dear life”. Faded Meaning – Adopting a contrarian investment strategy by trading against the prevailing trend. Buying or trading an NFT/cryptocurrency without doing due research. In general, FOMO describes anxiety about missing what is perceived to be a limited window of opportunity to participate in some positive event. In bitcoin, it usually refers to fear that, if you don’t take advantage of it now, you may miss out on the opportunity for a dramatic upswing in price. The information provided in this article is intended for general guidance and information purposes only.

Shilling is a form of social media marketing in the crypto & NFT Space. In relation to cryptocurrencies, influencers may endorse some projects in which they themselves have an interest or were paid to hype-up. In NFT world, it is a rather simple way to direct some attention of potential buyers.

DYOR is a term that is often referred to in the crypto world. As an investor, it is very important to understand and implement DYOR. Terra has secured billions of dollars of value so far and has proven secure. It’s important that the protocol continues to hold its peg to fiat currencies throughout difficult market conditions. Actively trade – Buy and sell the coin to take advantage of market moves. Cryptocurrencies with smaller market caps can have a greater upside, but are often more risky investments.

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Once you are done with this extensive yet essential aspect of the DYOR process, you can now compare various crypto projects against their competitors. DYOR in crypto requires information gathering and filtering, which is not easy when the crypto market is full of red flags https://xcritical.com/ that are not easy to notice. DYOR makes you aware of what’s happening in the crypto community as well as understanding the tools and sources to help you with the right decision making. DYOR stands for Do Your Own Research which is a commonly used acronym over the internet.

The opposite of diamond hands – a negative term for someone who does not hold onto an NFT or token for long, usually panic selling when its prices drop. The actions of whales are followed closely by observers due to whales’ ability to impact liquidity and move market prices. Once the term whale caught on, various additional names emerged for other individuals based on the amount of bitcoin owned .

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You should also evaluate if the roadmap is feasible – this relates to the above research on the team and their background. A fake or deceptive crypto project may publish a roadmap that promises all kinds of products or features in a short time. These projects sometimes do this to excite new backers into believing the project is viable in the long run and things are moving along quickly. If a project makes promises like partnerships, new products, plans to raise a large sum of money, and full government approval all within a short time, buyers should be wary. DYOR is a well-known acronym in the crypto and blockchain space. DYOR means that people are encouraged to conduct due diligence and gather all the necessary information on projects before depositing any funds, especially for new projects.

If you’re on a shared network, like the one at your workplace, ask your network administrator to run a scan across the network to weed out any infections. Choosing the appropriate crypto derivatives allows you to get twice the result with half the effort. The internet is full of misinformation and disinformation, some of which may even be malicious propaganda. People may lose their rationality due to strong FOMO emotions. Therefore, users must do their own research and judge the reliability of information so as to make decisions wisely.

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When the token approaches this level, a buy situation occurs. Lots of demand usually stops the decline, and sometimes the momentum itself can become an uptrend. Total Value Locked – Terra has a TVL of AU$19 billion, which is the second-highest amount of any blockchain. These metrics are sure to change significantly, so make sure you check the Terra page for the latest figures. It’s unclear how governments will treat decentralised stablecoins. One advantage of Terra is that it supports stablecoins for multiple currencies.

Many bitcoin-adjacent subcultures have cropped up in the time since its 2009 launch, and with new subcultures often comes new terminology. “Bitcoin” was once a novel word itself—it first appeared in the bitcoin whitepaper merging the concepts of a digital “bit” and “coin”. Although the information posted on social media may be unverified, these platforms can still be an excellent way to get much-needed information about projects. Posts may be from people who have lost money, made money, or those who noticed specifics that they considered to be red flags. However with everything on social media, always confirm that the statements being made are legitimate before you take them as truth. You should also look up the blogs on the cryptocurrency websites and just check out if the project is working along the lines it said it would in the roadmap.

DYOR

The concept is analogous to the real life flipping of trading cards, rare toys, and comics for profit. The term Flippening was colloquially coined in the year 2017 to represent the idea of a hypothetical situation in which Ethereum overtakes Bitcoin in terms of market capitalization. Similarly the term in NFT space represent “Bored Ape Yacht Club ” Floor Price Higher Than “CryptoPunks” – the OG NFT collection. NFA and DYOR are an acronym for “Not Financial Advise” and “Do Your Own Research”, respectively. People active in crypto space often tend to highlight upcoming Crypto/NFT projects they believe in but simultaneously put out NFA/DYOR disclaimer for their followers.

• A crucial part of DYOR is to not blindly follow any tip or prediction you see on social media to make an investment decision.
• It’s one of the most popular terms in the cryptocurrency community.
• Lots of demand usually stops the decline, and sometimes the momentum itself can become an uptrend.
• Although Gravity is still in beta, it offers a constantly updating feed of project news, articles, and user sentiment.
• To be able to conduct secondary research, note down the names of the key players involved in the project, like the Founder and CEO.

People researching crypto and blockchain projects should use multiple tools, common tools include CoinGecko, CoinMarketCap, Investopedia and social media. All crypto projects should have at least a whitepaper that documents information and technical aspects of the project. Whitepapers contain critical information about a project’s development process, potential opportunities, and utility.

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A vaporware project may be promoted for months or even years before being made available to the public. Cryptosis refers to someone who strives to absorb every bit of information about crypto and won’t stop talking about it. Knowing where to get reliable and agenda-free information is helpful. Always proceed cautiously when making an investment you don’t fully comprehend, and keep an eye out for further great opportunities.

Ape or apeing is when someone buys a token or NFT shortly after it launches without previously conducting proper research. So, go ahead and stare at charts, look for candle patterns, check up indicators, and test new trading tactics as there is always something new to learn. While we have created a step-by-step process on how to go about DYOR in crypto, you can run down the list below to imagine the bigger picture of your research efforts. After you sign up and connect your first exchange account, you’ll deploy an investment-maximizing strategy in as few as 5-minutes.

It can also be used as a label to ridicule people who have taken a stance against crypto or who fail to understand basic crypto concepts. Short-term market movements will not sway a hodler, nor even if entire markets crash or become seriously volatile. Instead, hodlers will hold their positions regardless of price out of confidence in the long-term value of crypto.

To do this, one must analyze on-chain metrics such as transaction count, transaction value, hash rate, transaction fees, staked amount, status, and active addresses. The second step to take your DYOR in crypto to the next level is through technical analysis . In most cases, when you spot trading in cryptos by looking at historical price movements, you can identify a strategy where the prices of the crypto are available at a reduced rate.

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Ultimately, the DYOR reflects the core ethos of crypto—don’t trust, verify. DYOR aims to reduce the number of uninformed investors in cryptocurrency. It encourages them to research and understand a cryptocurrency before investing so that they can answer precisely why they are buying that currency and supporting that project. With the extreme demand of “SQUID GAMES” TV Series, the “Squid Games token” gained so much hype that its price rise to more than 2000% within a week. The investors in the Squid Games token were also not allowed to sell during the price pump due to some coding restrictions.

What does DYOR, NFA, HODL, BUIDL mean?

The crypto crowd can make or break any asset in a matter of time. The internet is full of random crypto trading advice, a lot of which is just false to hype up the project which many times result in dump schemes, shilling, and Sybil attacks. Also, not all advice from social media influencers is created equal, especially dyor meaning in the world of crypto. A crucial part of DYOR is to not blindly follow any tip or prediction you see on social media to make an investment decision. Whether you create your own strategy or follow a premium community leader, we believe the power to automate belongs in the hands of every crypto investor.