How to Do Your Own Analysis DYOR? WhiteBIT Blog

All of these tools help you do your own research across various industry verticals and aspects. As a way of combatting fraud, people were urged to ‘DYOR’ and investigate any potential investment fully before committing money to any project. The acronym of Do Your Own Research — encouraging investors to complete due diligence into a project before investing. Letters spelling scam to illustrate the topic of how to avoid social media scams.

Okay, imagine you’re a relatively new investor and you’ve just heard about a promising crypto project. A good first thing to do is go to a website like CoinMarketCap or Coingecko to see where it’s at and if it’s really alive. The investigation and monitoring of a cryptocurrency project is an ongoing process.

How Do You Research Crypto? Common Ways to DYOR

That is why you need to warm your chair up and spend countless hours researching projects. As of this publication, there are over 20,000+ cryptocurrency coins and tokens, and that number is likely to increase in the foreseeable future. Which means, it’s more important than ever to DYOR before proceeding with your crypto investments. One of the key features of the platform is the great charts that community members contribute to the website. The decentralized nature of the crypto world means that even the leading websites may not have perfectly accurate figures at all times.

Twitter is one of the easiest ways to learn more about any project. The best way to use Twitter is by searching for keywords related to your favorite projects. You can also follow their official accounts and get updates on their latest news and events. The circulating supply of a cryptocurrency refers to the total number of coins in active supply that are accessible to the public. This is often confused with the total supply, which is the combined amount of coins that have been created by miners and not yet been mined by anyone else. It’s difficult to buy or sell them at their current market price.

Fundamental Analysis

Secondly, Terra can be used to create stablecoins in many different currencies, not only USD. Finally, Terra is the most popular decentralised protocol and this gives users easy access to liquidity. Still, there are some strong competitors like MakerDAO and Celo. The concept of a decentralised stablecoin protocol is sound.

If a few whales control most of the coins, they will have an outsized influence on the price. If the project plans to create millions more coins, it may dilute the market and cause yours to devalue. It is almost impossible to time the market and buy at the absolute low, but you should still look at the crypto’s historical performance. Perhaps the price shot up early in 2021 before slumping, never to pick up again. Maybe it’s followed broader market trends or just hit an all-time high.

Your money is your decision

A couple of weeks ago, the crash of two linked cryptocurrencies caused tens of billions of dollars in value to evaporate from digital wallets around the world. Earlier this month, the crash of two cryptocurrencies caused a crash felt around the world, as seen here at a crypto exchange in Seoul. If a project is not active, it could have been abandoned or could be a crypto scam. The more you read, the more you’ll find sites you trust and commentators that seem to speak your language. Don’t take everything you read as truth — sadly, there’s a lot of misinformation out there. But if you make notes as you read or watch videos, you’ll start to get a reliable picture.

Also extend your analysis to the project’s partners, their background, and the role they play in the project. To verify a transaction, users will need to pay a fee in the native coin of the blockchain. An increase in the fees paid is usually an indication of increased usage. Like other on-chain metrics, the cumulative fee paid by users is another way to gauge the usage of a blockchain. Bitcoin’s value has a history of a proportional relationship with its hash rates.

Determine whether the cryptocurrency has a utility

Select your preferred payment method You can currently choose between the different payment methods when buying cryptocurrency on Easy Crypto. The available payment methods will depend on which region you are transacting in, but rest assured your funds are safe with us. Trading volume is simply the number of shares, contracts or currency units that were traded in a particular period of time .

If the project is already live, investors should compare the product presented on the white paper with what the project has put in place. If the project is already deviating from the initial design without a good reason, investors might https://xcritical.com/blog/how-to-do-your-own-research-dyor-before-investing-in-crypto/ want to reconsider their investment plans. A white paper is an official informational document that outlines the features and goals of a project. The whitepaper can also contain a breakdown of the tokenomics and the project’s roadmap.

The Project’s White Paper

All of the answers you uncover here will either build confidence or shatter it. Too often, businesses jump on shiny new https://xcritical.com/ technology and try to develop reasons to use it. Always have this in the back of your mind when doing your research.

• You can also compare two or more search terms on the same chart.
• She struggles to remember if she ordered a latte or a cappuccino, though.
• Anything that helps you become more informed about a subject is a form of analysis.
• However, one approach commonly proselytized by investors is that everyone should bloom by relying on personal research.
• Ideally, you want a place where you can have open and honest discussions and accept constructive criticism.

However, sometimes it might be tricky to know where to start. Being familiar with stock research I thought I can do the same things with cryptos. Looking through the sites used for analyzing stocks was useless and when finding the crypto sites, I had no idea what to look for, or if the sites were any good. That’s why I’ve gathered here the top 10 crypto research tools that have helped me along the way. There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. Our experts have done the research to pick out the select few top crypto exchanges today.