Common Crypto Investment Pitfalls And How To Avoid: A DYOR Do Your Own Research Guide eBook : McNaught, Michael: Amazon in: Kindle Store

It does not completely eliminate the risk of a disastrous investment. The phrase
“DYOR” is often used in the cryptocurrency trade and related
industries. Its main objective is to remind people of the importance of doing
extensive study on projects before investing in them and to warn them from
acting mindlessly on other people’s suggestions.

  • Hence, it is a must to perform a sentimental analysis before investing in any cryptocurrency.
  • It does not completely eliminate the risk of a disastrous investment.
  • As investors or traders, it is vital to conduct such investigations and thereby enter the market at the right time.
  • One unique platform to educate you on everything about crypto and help you, as an investor, have a deeper and more holistic knowledge about the crypto market.

But you have to consider the strategy of high risk, high reward as a beginner. While the growth potential is very high, you have to be aware of the risks and do your own research before investing here. It is important for you to invest https://www.xcritical.in/ only in established cryptocurrencies and view investing in cryptocurrencies as a long-term strategy. Now that cryptocurrencies have become hugely popular even among young investors, you might be tempted to join the bandwagon too.

Hey there, cryptonaut! It’s time for you to join the rocketship.

People advertise or endorse coins on social media posts with a hidden agenda of making profits. The advertiser is seldom concerned as to whether the coin has any merit or any underlying functionalities. https://www.xcritical.in/blog/how-to-do-your-own-research-dyor-before-investing-in-crypto/ That person is only advertising the coin for his own benefit and as crypto investors, we can fall prey to such false advertisements and in the process end up investing in those coins.

You can conduct technical analysis by evaluating crypto price charts, reading trends, indicators, candlestick patterns, and more. The fundamental analysis goes to the core of understanding how much a crypto is actually worth and whether it will survive in the crypto market. Additionally, it includes researching and evaluating the overall crypto industry and competitors to get a thorough idea of the viability of the crypto to make an investment decision. It is also very important for you to do your research and be aware of the risks in the cryptocurrency market before you plan to enter this market or invest here.

Many individuals build coins just for their entertainment sake or to dupe other investors. Yet there are founders who come with vast experience in the industry. For example, the founder of the famous coin Cardano – Charles Hoskinson had immense experience building cryptos before inventing Cardano.

It tells you why the crypto started, why it is being issued, the roadmap ahead, and the growth prospects. Thus, it is a must to go through the whitepaper before investing in cryptocurrencies. You can not miss out on social media analysis while DYOR in crypto. The base step of this analysis includes evaluating the crypto project’s website.

Scammers using airdrops can steal your identity, gather personal data and pinpoint you as the future target. Cybercriminals could even use false airdrops to even gain user base for a totally different project. This is why you should never give away your private key or your crypto wallet passcode t to any untrusted party. WazirX collaborated with CREBACO, since the agency deals with information regarding the market background and status of various coins.

SC lifts curb on cryptocurrencies: What it means for crypto companies and investors

Since then we have pushed boundaries in exceptional content for our community, ranging from news, reviews, tutorials, interviews and much more. Coin Crunch is now transitioning to video only content on our Social Media platforms. In order to understand concepts and complexities, trustworthy sources can be consulted. In spite of that when it comes to investing, the financial advice offered should not be considered absolute. Additionally, it can be challenging to understand the many technical signs if you don’t understand what they signify. Reliable platforms in this regard include CoinTelegraph, Decrypt, Binance Academy, ByBit Learn, Alexandria by CoinMarketCap, etc.

When you decide to venture into the crypto market, you must conduct in-depth research. Research is
mostly done in order to practise risk-aware trading and disciplined thinking. If one were to invest a lot of money in a product without researching it, that
would be similar to gambling.

Before diving into the cryptocurrency world, educating yourself about the various cryptocurrencies available, their underlying technology, and the market trends is crucial. Research different projects, read whitepapers, and understand the team behind them. A well-informed investor is better equipped to make intelligent investment choices. Crypto investing can seem daunting for beginners; however, understanding the basics is relatively simple.

These research-backed reports will help the readers understand the fundamentals of the crypto market. The users can read about the founding team, founding technology, funding, among other things. Sentimental analysis refers to analyzing sentiments of traders regarding the overall market condition or a particular crypto asset. Market conditions are often driven by how investors feel about the direction it can take. The situation may lead to increased volatility and the high probability of you entering or exiting a market at the wrong time.

Even if you are successful in compiling a wealth of reliable
information about a project, it is always preferable to cross-check it with
reliable sources. When you
hear the term DYOR, you are probably already aware that it is not about doing
your own homework for your classes. It is actually a term used in the crypto
industry to get more information about a project before investing. For example, Bitcoin (BTC) runs on a Proof of Work (PoW) technology, whereas Ethereum (ETH) runs on Proof of Stake (PoS). Protecting capital and making gains in the world of cryptos is both an art as well as a science that can be achieved only if a person follows a simple yet powerful principle, Do Your Own Research (DYOR). To learn more about this strategy, we will first discuss what crypto trading is and what are the necessary steps needed to successfully implement this principle.

You can ask questions about the project and receive rapid answers from the locals. Market trackers provide a solid picture of the market, but data aggregators like TradingView, Glassnode, and Coin Metrics are necessary to look further into a project. These sites offer in-depth analyses of the various cryptocurrencies and can give you useful information about how they will perform in the future. Before making
an investment, investors can conduct extensive research on a variety of topics,
including the organisation’s history, its leadership, and its online
reputation.

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