Many terms are quite important to know in the world of crypto assets, and one of them is the term DYOR.
DYOR is very useful to encourage investors to continue to research and gain knowledge before plunging into the world of crypto asset investment.
So, to understand and learn more about what DYOR is and how it is implemented in the crypto world, let’s look at the following review!
What is DYOR?
Do Your Own Research or DYOR is simple to research that investors can do, including crypto assets.
This encouragement in the form of invitations for investors is intended so that potential investors and novice investors can find as much information as possible and conduct in-depth research for investing in crypto assets in any form.
DYOR also allows investors to provide precise answers regarding their reasons for choosing crypto, for example, as an investment.
In addition, by conducting research and studying information, investors will benefit most from their investment.
In its history, DYOR, as a term in cryptocurrency investment, became famous in 2016 and 2018.
At a time when ICO projects or Initial Coin Offerings began to flood the crypto ecosystem, it was known that many novice investors were willing to spend large amounts of money (money) to purchase crypto assets.
However, these investors need to have qualified knowledge and research in investing.
Not a few investors also buy crypto assets under the pretext of Fear of Missing Out, aka FOMO.
Of course, the above conditions will make the number of frauds and failed investments high.
These investors have dug deep into their pockets to buy crypto assets to make a profit.
In response to this phenomenon, some parties require potential investors to research before plunging into the world of investment.
In this case, potential investors can focus on their research, starting from the background of a project, the team, and those involved in it, guaranteeing the security of these assets, to projections of future developments.
Why is DYOR Important in Crypto Analysis?
It is very important to do research or DYOR in crypto analysis.
The reason is that in this type of investment instrument, at least two types of digital crime often befall novice investors.
Both are Sybil’s attacks and shilling practices. The Sybil attack is a criminal practice that often occurs on social media, Facebook, Twitter, and Reddit.
The Sybil attack mechanism is that the perpetrator will create fake accounts on social media platforms with the aim of tricking investors.
Later, investors will be interested in buying crypto from advertising posts previously made by perpetrators.
On the other hand, the shilling makes token/coin advertisements owned by criminals.
The hope is that this action will positively affect asset prices.
So far, many novice investors still need help distinguishing between trusted investment verification and not.
Now, with research using the DYOR method, potential investors and novice investors can more easily make decisions regarding crypto assets because they already have a lot of considerations.
Therefore, doing some simple research before buying crypto assets is very important.
How to Do DYOR
In conducting research using DYOR, several important points can serve as a guide to finding reliable information and become the basis for making investment decisions later, namely as follows:
1. Make sure the regulation
Whether registered or pocketed regulation from the government, investors must ensure that the product to be chosen is official.
This means that the product has been registered with a government regulatory body.
By going through a fairly long screening process, these assets will usually have a lower risk.
2. Identify the source
The source of these assets is important to identify. Investors can google to get initial information.
Then, ensure the source’s credibility through their track record (including in terms of criminal acts).
In addition, compare information from the media with that submitted by these sources to obtain comparisons.
3. Check the accuracy of the information
In this case, check the information from the media with the source, whether there are differences or not.
Also, make sure that the information facts only come from one person or several people who can support the truth of these facts.
4. Know the purpose
Prospective investors must also know the objectives of the party behind the investment.
For example, the party gets investors interested in a particular investment or provides financial advice.
Apart from that, investors must also know the reasons behind this. For example, they will gain large profits from the funds deposited or other things.
5. Ensure legitimacy
Furthermore, investors also need to ensure the legitimacy of these parties.
In this case, make sure that the party behind the project can be contacted, for example, via email, and they provide feedback.
6. Be careful with tempting offers
Sometimes, a tempting offer comes from a new investment project.
Usually, the promised profit could be more reasonable, so investors must be careful.
The reason is that the offer is the first step to a scam.
Application of DYOR in the Crypto World
Several methods can be used regarding the application of DYOR in the crypto world.
However, one thing that needs to be considered here is to identify the potential of the investment to be carried out.
To be able to do research using DYOR, investors can first write down a list of projects that interest them.
Then, he can review each project earlier. This review is important to do to find out the address of the official website, the team/parties involved, the project’s marketing scheme, and other things that are considered important.
By taking some of the actions above, investors can find out how much potential can be obtained.
In identifying the potential for crypto investment, there are two suitable methods to make it workable, namely as follows:
1. Technical analysis
Technical analysis (technical) is an analysis that can be applied by conducting research independently.
To apply technical analysis, several indicators are important to know, including observing market price chart movements, checking trading indicators, testing the latest trading strategies, and looking at candlesticks.
2. Fundamental analysis
Fundamental analysis is a type of analysis that focuses on evaluating strategies for deciding asset values in the market.
This research generally includes a review of business practices, roadmaps, whitepapers, conditions of the team/parties involved, implementation of marketing strategies, development, network activities, tokenomics, etc.
With fundamental analysis, you can later conclude that the project is overvalued or vice versa.
Not only that, you can later make an assessment and compare whether the project is the same as other projects.
DYOR, or Do Your Own Research, is simple research that investors can do, including crypto assets.
The goal is that potential investors and novice investors can find as much information as possible and conduct in-depth research for investing in crypto assets in any form.
With research using the DYOR method, potential and novice investors can more easily make decisions regarding crypto assets because they already have many considerations.
In investing, it is important to remember that speculative crypto investments can generate large profits and carry high risks.
Therefore, before making a speculative investment, do thorough research and analysis to make a wise investment decision.
So, if you already understand DYOR, now is the time to start investing in crypto.
However, before investing, check the coin market’s updated price on INDODAX!