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'DYOR!'
Yeah, you have probably heard this term a couple of times if you're quite familiar with the crypto space generally. It could probably be heard when someone makes a call to buy a particular coin and is trying to indicate that you're only to buy at your own risk and based on personal conviction or maybe, generally when a crypto investment is recommended.
However, what's the point exactly? What does DYOR even mean and how is it done?
MEANING OF DYOR
The term DYOR is short for 'Do Your Own Research'. Doing your own research simply means taking quite a comprehensive personal study of a particular cryptocurrency project before delving into or making a decision to invest in that particular project.
Most times, 'DYOR'is commonly used to alert and prevent someone from just taking another person's crypto investment advice for it without having a thorough knowledge
IMPORTANCE OF DOING YOUR OWN RESEARCH
Historically, after the success of Bitcoin, a lot of other cryptocurrency projects started to spring up to the surface also, with various ICOs. These created quite a stir with lots of questions popping up as a lot of people were curious about various price predictions and how investing could turn out.
Of course, in response to this, a lot of so-called 'experts' also voiced out to give their own predictions- some of which were based on personal interest and sentiments or just based on their own personal convictions.
As it turned out, some of these predictions rolled out to be true and profitable while some just only led to huge losses to those individuals that followed solely based on the advice without questions and proper knowledge.
Over time, as a result of those that make investment decisions solely based on the advice of other people and lost along the way, the idea of 'doing your own research' before investing in any project, came into place.
So...Basically, the importance of doing your own research is to be able to properly evaluate whether or not investing in a particular cryptocurrency project is worth it.
HOW TO DO YOUR OWN RESEARCH
Doing your own research about a particular cryptocurrency project before investing actually involves a series of processes which I have carefully outlined as 3 major steps below;
STEP 1--- IDENTIFY THE PROJECT OF CHOICE
In our world today, the total number of cryptocurrencies available is over 6000 and counting as even newer cryptocurrencies keep emerging regularly.
Consequentially, this also implies that there is a wide range of cryptocurrencies that you can identify as potential investment opportunities thus you have to make your decisions based on which crypto you feel suits you.
You can do this by making a comprehensive list and properly evaluating your options before going for a choice.
STEP 2--- FAMILIARIZE YOURSELF WITH THE CORE COMPONENTS
After selecting a project of choice for investment, you have to familiarize yourself with the core components of the project. This usually involves getting to know what the project is actually all about by going through basic details about it which include;
THE TEAM: The team behind a project usually comprises a group of individuals that come together to propose, develop, and publicize a particular cryptocurrency project with the aim of making it a success.
Before you invest in a particular project, you have to make sure the team is a group of well-experienced individuals who know what there are up to and regularly communicate their major activities publicly to potential investors in real-time.
THE WHITEPAPER: A whitepaper is a written form of document that contains technical information about a crypto project presented by a project team with the intention of informing and encouraging investors to participate in the project's ICO (Initial Coin Offering).
The whitepaper usually contains details about the project like the token details, project roadmap, blockchain use cases, partnerships, and project development plans.
STEP3--- STAY INFORMED AND REGULARLY UPDATED
A good way to be sure you do not miss out on important information and useful updates from crypto projects is to ensure you stay glued to their verified socials. This way, you can keep track of project developments and innovations as well as possible partnerships with other major organizations regularly.
You could also try as much as possible to get information from top verified cryptocurrency news sources so you can at least stay on top of things generally.
CLOSING THOUGHTS
While I have tried as much as possible to streamline and simplify the broad concept of DYOR, it is still necessary to know that doing your own research might not be limited to what is above in this article.
Thank you for taking the time to read this, Kindly let me know what you think in the comments! :)
Let's connect!;
My Telegram: https://t.me/orxad
My Read.cash: https://read.cash/orxad
My Noise.cash: https://noise.cash/u/Oreoluwa
My Twitter: https://twitter.com/theorxad_1
Excellent job breaking everything down, and making it easier to understand. I really enjoyed reading your article , the information here is priceless. You have done a great service to the crypto community by publishing this article. Keep up the great work.