How to Do Your Own Crypto Research (DYOR)

5 Core Points of Cryptocurrency Research (DYOR)

1. Understanding the Types of Analysis:

   • Technical Analysis: Focuses on past price trends and chart patterns to predict future movements. It’s useful but shouldn’t be the sole method for making investment decisions.
   • Sentiment Analysis: Studies the market’s emotions and opinions about a cryptocurrency by analyzing online conversations and news articles. Tools like sentiment scores can help, but this method can be manipulated and is often short-term.
   • Fundamental Analysis: Examines the core aspects of a project, such as the team, the technology, and the project’s goals. This is crucial for understanding the long-term potential of a cryptocurrency.

2. The Goal of Research:

   • The primary objective of research should be to critically evaluate a project and try to identify potential flaws. This helps mitigate biases and ensures a more balanced view.
   • Ask yourself if you can envision a large number of people adopting the cryptocurrency. A project is more likely to be profitable if it has a broad and growing user base.

3. Key Elements to Investigate:

   • Tokenomics: Understand the economic model of the cryptocurrency. Determine if the token is inflationary (more tokens created over time) or deflationary (tokens are burned or destroyed). The initial distribution of tokens (e.g., airdrops, ICOs) also significantly impacts tokenomics.
   • Team: Research the background and track record of the project’s team members. A team with a successful history and strong connections is more likely to drive a project to success.
   • Social Media and Community: Analyze the project’s presence on social media. Dedicated content creators and active communities can be indicators of a project’s potential growth and adoption.

4. Evaluating the Project’s Purpose:

   • Identify the problem the cryptocurrency aims to solve and assess how effectively it addresses this issue. For instance, Bitcoin is known for combating inflation, while Ethereum offers solutions to problems posed by traditional banking.
   • A clear and compelling purpose can be a strong indicator of a project’s potential success.

5. Deserving Factor and Market Position:

   • Consider where the cryptocurrency currently stands in the market and where it deserves to be based on its technology, adoption, and overall potential.
   • Compare its market cap and distribution with other projects to estimate a fair value. This helps in making informed predictions about the project’s future performance.

By focusing on these five core points, you can conduct thorough research and make more informed decisions in the cryptocurrency market. Remember, it’s essential to approach each project with a critical eye and to diversify your research methods to gain a well-rounded understanding.

 

Step-by-Step to Research a Crypto (DYOR)

Welcome to your detailed guide on how to do your own research on a cryptocurrency coin or token. By following these steps, you will gain a comprehensive understanding of what to look for and how to analyze various aspects of a cryptocurrency project. Let’s get started!

Step 1: Understand the Types of Analysis

1. Technical Analysis:

   • Technical analysis involves studying past price movements and chart patterns to make educated guesses about future price behavior.
   • Look at price charts and identify patterns that might indicate future trends.
   • Remember, this method relies on historical data and market psychology, so it shouldn’t be the only tool you use.

2. Sentiment Analysis:

   • Sentiment analysis gauges the market’s feelings and opinions about a cryptocurrency by analyzing discussions on social media, forums, and news articles.
   • Tools are available to compile sentiment scores, indicating whether the market sentiment is positive or negative.
   • This method can be short-term and easily manipulated, so use it in conjunction with other analyses.

3. Fundamental Analysis:

   • Fundamental analysis focuses on the project’s core aspects such as the team, technology, and goals.
   • This is crucial for understanding the long-term potential and sustainability of a cryptocurrency.
   • Dive deep into the project’s white paper, the team’s background, and the technology being used.

Step 2: Set Your Research Goal

• Critically Evaluate the Project:
  • Your primary goal should be to try to find flaws in the project. This helps you overcome any biases and get a balanced view.
  • Ask yourself: Can you see a large number of people adopting this cryptocurrency? If the answer is yes, it might be a good investment.

Step 3: Investigate Key Elements

1. Tokenomics:

   • Tokenomics refers to the economic model of the cryptocurrency.
   • Determine if the token is inflationary (new tokens are continuously created) or deflationary (tokens are destroyed over time).
   • Check how the token was initially distributed. Look for details about airdrops, ICOs, pre-mines, and other distribution methods.
   • Analyze whether the project has mechanisms to control inflation or deflation and how these might impact the token’s value over time.

2. Team Analysis:

   • Research the team behind the project. Look into their backgrounds, previous projects, and their success rates.
   • A team with a successful track record and good industry connections is a strong indicator of a project’s potential success.
   • Trust in the team is crucial as they are the ones driving the project forward.

3. Social Media and Community:

   • Analyze the project’s presence on social media. Active communities and dedicated content creators can indicate a project’s potential for growth.
   • Look for niche content creators who specialize in one project, as their dedication can bring in new users and investors.
   • Community engagement and the presence of influencers can significantly affect a project’s visibility and adoption rate.

Step 4: Assess the Project’s Purpose

• Identify the Problem Being Solved:
  • Determine what problem the cryptocurrency aims to solve and how effectively it addresses this issue.
  • Compare it to other solutions in the market. For example, Bitcoin addresses inflation, while Ethereum offers solutions to banking inefficiencies.
  • A project with a clear and compelling purpose is more likely to succeed.

Step 5: Evaluate Market Position and Potential

• Deserving Factor:
  • Consider where the cryptocurrency currently stands in the market and where it deserves to be based on its technology and adoption.
  • Compare its market cap and distribution with other projects to estimate its fair value.
  • This helps you make informed predictions about the project’s future performance.

Additional Steps and Resources

1. Read the White Paper:

   • A white paper is a detailed document where developers describe the problem they want to solve, their proposed solution, and their plans for implementation.
   • Reading the white paper will give you deep insights into the project’s vision and technical details.

2. Check Whale Wallets and Liquidity:

   • Analyze whale wallets (large holders of the cryptocurrency) to understand the distribution of tokens.
   • Investigate the project’s liquidity, including locked liquidity, which can be more important than market cap.

3. Join Research Communities:

   • Consider joining communities like the Whiteboard Crypto Club for additional resources, including advanced research techniques and access to expert opinions.
   • Engaging with a community can provide you with valuable insights and support as you conduct your research.

Bonus Tips

• Understand Market Cycles:

  • Recognize that the cryptocurrency market is cyclical, with periods of boom and bust. Timing your investments can be crucial.

• Stay Updated:

  • Continuously stay updated with the latest news and developments in the cryptocurrency space. Markets can change rapidly, and staying informed will help you make better decisions.

By following this step-by-step guide, you will be well-equipped to conduct thorough research and make informed investment decisions in the cryptocurrency market. Remember, the goal is to gather as much information as possible and critically evaluate every aspect of a project before investing. Good luck with your research!

 

How to Thoroughly Research on a Crypto Coin (DYOR)

If you’ve ever watched a cryptocurrency video, you’ve probably heard the phrase, “This is not financial advice. Always do your own research.” While it may sound like a magical spell that shields creators from liability, it doesn’t offer you any real insight into how to actually conduct your own research. What does it mean to do your own research? What does it look like, and is it difficult? I’m here to answer these questions and guide you through the process step by step.

Welcome to Whiteboard Crypto, the number one YouTube channel for crypto education. We explain cryptocurrency topics using analogies, stories, and examples so that even your grandpa could understand them. In this article, I’ll explain what doing your own research really means and, most importantly, how to do it effectively.

Understanding the Types of Analysis

In cryptocurrency research, there are three primary types of analysis: technical, sentiment, and fundamental. Many people argue about which one matters most, but I believe all three play a crucial role.

1. Technical Analysis

Technical analysis is the study of past price movements to predict future trends. It involves looking at price charts and identifying patterns. While this method relies heavily on historical data and market psychology, it shouldn’t be the only tool in your arsenal. It can give you valuable insights but must be combined with other forms of analysis for a well-rounded perspective.

2. Sentiment Analysis

Sentiment analysis measures the market’s feelings and opinions about a cryptocurrency by analyzing social media discussions, forums, and news articles. Tools are available that compile these conversations and assign a sentiment score, indicating whether the market sentiment is positive or negative. However, this method can be short-term and easily manipulated, so use it alongside other analyses.

3. Fundamental Analysis

Fundamental analysis focuses on the core aspects of a project, such as the team, technology, and goals. This is crucial for understanding the long-term potential and sustainability of a cryptocurrency. Dive deep into the project’s white paper, the team’s background, and the technology being used. This form of analysis is accessible to everyone and can provide a solid foundation for your investment decisions.

Setting Your Research Goal

The primary goal of your research should be to critically evaluate the project and try to find potential flaws. This approach helps you overcome biases and get a balanced view. Ask yourself: Can you envision a large number of people adopting this cryptocurrency? If the answer is yes, it might be a good investment.

Investigating Key Elements

1. Tokenomics

Tokenomics refers to the economic model of the cryptocurrency. Determine if the token is inflationary (new tokens are continuously created) or deflationary (tokens are destroyed over time). Check how the token was initially distributed. Look for details about airdrops, ICOs, pre-mines, and other distribution methods. Analyze whether the project has mechanisms to control inflation or deflation and how these might impact the token’s value over time.

For example, Bitcoin is currently inflationary because new coins are still being mined. However, it will eventually become deflationary as the total supply is capped. Understanding these dynamics can help you predict future price movements.

2. Team Analysis

Research the team behind the project. Look into their backgrounds, previous projects, and their success rates. A team with a successful track record and good industry connections is a strong indicator of a project’s potential success. Trust in the team is crucial as they are the ones driving the project forward.

3. Social Media and Community

Analyze the project’s presence on social media. Active communities and dedicated content creators can indicate a project’s potential for growth. Look for niche content creators who specialize in one project, as their dedication can bring in new users and investors. Community engagement and the presence of influencers can significantly affect a project’s visibility and adoption rate.

Assessing the Project’s Purpose

Identify the problem the cryptocurrency aims to solve and assess how effectively it addresses this issue. Compare it to other solutions in the market. For example, Bitcoin addresses inflation, while Ethereum offers solutions to banking inefficiencies. A project with a clear and compelling purpose is more likely to succeed.

Evaluating Market Position and Potential

Consider where the cryptocurrency currently stands in the market and where it deserves to be based on its technology and adoption. Compare its market cap and distribution with other projects to estimate its fair value. This helps you make informed predictions about the project’s future performance.

Additional Steps and Resources

1. Read the White Paper

A white paper is a detailed document where developers describe the problem they want to solve, their proposed solution, and their plans for implementation. Reading the white paper will give you deep insights into the project’s vision and technical details.

2. Check Whale Wallets and Liquidity

Analyze whale wallets (large holders of the cryptocurrency) to understand the distribution of tokens. Investigate the project’s liquidity, including locked liquidity, which can be more important than market cap.

3. Join Research Communities

Consider joining communities like the Whiteboard Crypto Club for additional resources, including advanced research techniques and access to expert opinions. Engaging with a community can provide you with valuable insights and support as you conduct your research.

Bonus Tips

• Understand Market Cycles: Recognize that the cryptocurrency market is cyclical, with periods of boom and bust. Timing your investments can be crucial.
• Stay Updated: Continuously stay updated with the latest news and developments in the cryptocurrency space. Markets can change rapidly, and staying informed will help you make better decisions.

By following this comprehensive guide, you will be well-equipped to conduct thorough research and make informed investment decisions in the cryptocurrency market. Remember, the goal is to gather as much information as possible and critically evaluate every aspect of a project before investing. Good luck with your research, and may your investments be profitable!