Always DYOR a.k.a. Do your own research before making any financial decision

A Guide to Wise Crypto Coin and Token Selection - DYOR Practices

By Coins Reporter | Coinsreporter | 11 Dec 2023


Currently the crypto market is overbrimmming with thousands of coins and tokens. There is also nothing wrong in having a large number for an evolving market. However, this has also given rise to the problem of 'what to approve and what to reject'. In this regard, a common person's answer would be 'look at those winning it', but a cryptogeek replies with only four letters 'DYOR'.

In crypto community DYOR stands for DO YOUR OWN RESEARCH and to confess 'In my initial meet up with crypto, I took it as investing in Cryptocurrency is like nothing serious but everyone just keeps saying "DYOR, DYOR, I ain't suggesting you."

Anyways, I have now understood how significant these four letters are. They are significant for everyone who writes about any financial projections. By typing DYOR, he can just escape the shame if he gets wrong in his prejudice or projections or a prediction. They are, however much more significant for the one who read them at the end of any post or article.

DYOR can not only prevent you from accepting blindly what you just have read or seen or heard, but it also opens a door for new information to enter. When you follow DYOR practices, it will educate you in a way that no scams or nothing worthless can ever come accross you.

What is DYOR? For the answer of this question I have an incident from my journey with crypto. Kindly correct me if I'm wrong but there are few things that never happened with me and escaped fortunately due to my obstinate habit of researching before making a final decision.

A personal note. I've never been scammed ever since I came in crypto. I mostly hold many different cryptocurrencies (more than 20), but I never had Terra Luna, not even a single coin. I never had even a single coin on FTX or any other exchange or wallet that crumbled ever. I don't mean to offend anyone here but I only can give credit to DYOR. Overall what I mean is if you just ready to invest, be ready to investigate as well. 

Not performing DYOR' is in the tip 3 mistakes that a new investor does

So, in the world of cryptocurrency, making wise choices when selecting a coin or token to invest in is crucial. To make informed decisions, there are several DYOR practices that can help you navigate this complex and volatile market. Hence here is your ultimate guide on how to DYOR practices.

1. First and foremost Understand the fundamentals. Cryptocurrency is such a space which is evolving at a fast pace so knowing the basics is a priority. Getting updated with the blockchain and crypto terminology can help you in this direction. In short you need to be educated in the fundamentals of blockchain and cryptocurrency before moving ahead.

2. Thoroughly read White Paper while you become interested in a Crypto-currency. This should be the first step,however most people would skip it, if their amount of investment isn't that much. But this is crypto and $100 can get you millions so be serious.  

3. Collecting information about team and management of a project should be the third priority. Yes, there are have been coins and tokens with anonymous tag behind them but why let any suspicious thing to override. 

4. Looking for the community build up on the social spaces is another important research practice. Try to find out good names in the community, those that have already been associated with successful projects previously. Also look for the engagement. Overlook any engagement that's just focused on giving away airdrops or initial offerings. Instead find out in what innovative ways the project is gathering attention.

5. Assess the technology and Infrastructure as this will be like a guarantee for the longevity of the project. Assess if the blockchain technology behind a project is suitable and efficient. Bitcoin and Ethereum became successful but their technology isn't without demerits. So while considering any coin looking at 'how impactful it can be in future' is the key. 

6. Keep up with information and news. This can be easily done by following official channels of a coin and crypto media platforms. However it's necessary that you follow some genuine crypto media outlets or influencers that provide unbiased news.

7. Extract out Broader Market Implications. There are many projects in the crypto market that are quite similar. What this marks is the best one will be there forever. Competition is good for overall development but it may drop weaker links and only stronger will remain. Another aspect of it is the ever changing market sentiments and regulations. This you can now observe with ICOs. Once they were the chief reason behind crypto boom, but you don't see any coverage of them these days. 

8. Look at partnerships and collaborations. If a project collaborates with established businesses or organisations, it's a validation of how their future will shape out. 

9. Reevaluate on a regular basis. Last but not the least, crypto as its market never sleeps, you need to asses your investment on a regular basis. Their are factors like volatility or regulations that may injure your investment but by reevalulation you can escape the greater loss. 

In a nutshell, investing in new cryptocurrency provides an exciting opportunity, however it may sometimes prove to be a disastrous decision. But this guide of 'how to perform DYOR' can save you from a lot of mistakes that you may commit otherwise. So DYOR and chose wisely. 

As Always Thanks for Reading and Tipping 

Adios ... Ciao.... Bye ... Take care ...

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Coins Reporter
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Once a Bitcoiner and forever will be. Love to share my views even if they are unbelievable.


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