All of these details provide tremendous insights and intelligence on individual coins and tokens. So, make sure that you verify that their social media presence and engagement is genuine. Join their channels, ask questions and see first-hand what the community and the admins look like. Additionally, verify any information shared by the team on social media and also verify the comments of users. You don’t need to have an economics background to understand some of the basic tools to check the health and investment potential of a token.
The best investors can do is equip themselves with enough knowledge and research to assist in effective decision-making and reduce risks. In addition, some tactics used by bad actors in the crypto space are designed to prey on inexperienced investors — or those who haven’t conducted disciplined research. Overall, Australia stands as the 15th most crypto-ready country in the world, tied with the Netherlands.
Bitconnect is one of the most famous high-yield Ponzi schemes in crypto history, causing losses of up to $3.45 billion in total. In November 2017, Vitalik, the founder of Ethereum, had already accused Bitconnect of being a https://xcritical.com/ scam. However, as investors were so overwhelmed by the high returns, they didn’t realize the huge risks behind the yield. In fact, if we look deeper into Bitconnect, it is easy to discover the Ponzi nature of the project.
Let’s recap the four dimensions of DYOR that we have discussed:
New websites like centralized and decentralized exchanges, automated market makers, plus portfolio trackers have transformed the industry and the tools used by investors. Many platforms allow customizable accounts and interfaces to help make the DeFi experience more accessible and individual. You’ve learnt how to do your own research and identify which crypto to buy now. You’re well on your way to building an impressive crypto portfolio filled with exciting digital assets. The journey isn’t over once you’ve made your crypto investment. This resource is great for accessing customized analysis carried out by the platform’s users into various crypto assets.
Actively trade – Buy and sell the coin to take advantage of market moves. The number of users and active addresses are a great way to measure the network growth of a protocol. Number of users – The amount of actual people that are using the network.
Poly Network Hack: The Largest DeFi Hack
The complete list of projects that have successfully applied for a grant can be foundhere, where you can see what each project has delivered and if, perhaps, their grant has been terminated. From handmade pieces to vintage treasures ready to be loved again, Etsy is the global marketplace for unique and creative goods. It’s also home to a whole host of one-of-a-kind items made with love and extraordinary care.
- If you need tools and strategies regarding safety and crypto education, be sure to check out the Tutorials, cryptonomics explainers, and Trading Tool Kits from BSC News.
- You can research cryptocurrency using a variety of resources.
- Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets.
- Both have proven successful as entrepreneurs, while Kwon also worked as a software engineer for Microsoft and Apple.
This is especially true for projects that are already running on another network, like on Ethereum or Binance Smart Chain, and have issued tokens there. Many projects do that either to raise funds and test their infrastructure or because they aim to build a “multi-chain” solution or both. An open-source project promotes transparency, builds trust, and potentially ensures project team honesty. Additionally, it makes it very easy to track the project’s progress and see how active the team is in developing it.
Of course, getting a parachain slot on either of the two main networks is not guaranteed, and all projects will need to win an auction for a parachain slot. The documentation will also give you an idea of the technical expertise of the team. If the team analyses their technology and technical aspects, this is a potential indication of technical prowess. On the other hand, if the team focuses only on tokenomics or analyses their project only in broad, vague terms, this is potentially an indication that there is not a clear path to their goals. If a project team constantly updates their product, it is always a good indication that they are serious and passionate about building.
Also, checking the metrics makes it easy to compare different cryptocurrencies. Crypto has been a life-changing investment for so many people and it’s natural that new investors to the space want to achieve the same level of financial success. Intuitively, these investors recognise that selecting the right cryptocurrency is the most important decision they will make when investing in crypto.
Some projects have stealth mints with limited warning and sell out instantly, so it can be challenging to get a feeling for the authenticity and requires quicker decision-making. While others have slower mints that allow you to evaluate minting progress and perform a deeper dive into Twitter and Discord for confirmation of a project’s legitimacy. If a team’s baseline website and marketing materials are high quality, it is more likely than not they will apply the same type of diligence on future items on the project’s roadmap. Team – Terra was founded in January 2018 by Daniel Shin and Do Kwon.
Create your own indicator using Pine script or stare at a cryptocurrency’s chart until you find a meaningful connection. In that case, learning how to learn is far more important than understanding what a blockchain is or what kind of information crypto transactions hold. At the end of the day, crypto is all about making money, so it should not come as a surprise that investors are taking advantage of others. DYOR stands for Do Your Own Research and it represents a powerful acronym that urges newcomers to learn on their own and not to rely on others.
CYLUM Finance; An NFT marketplace on the Binance smart chain.
Though there are many social media platforms where the crypto community is quite active, you still ought to DYOR as Sybil attacks are very common on such platforms. People with malicious intent can quickly create fake accounts in an attempt to trick investors into purchasing crypto based on a “popular” post on social media. TA can help when you buy or sell crypto for a short or long period. As investors and traders, it becomes necessary to assess the market at the right time. Fundamental analysis is the first step of DYOR in crypto as it determines whether a project is undervalued or overvalued.
Review the website, white paper and roadmap to understand the basic mechanics of the project and think about what is innovative about the project and whether it solves some current problems. You can also use the traditional SWOT analysis to find the project’s strengths and weaknesses. However, it is important to look into these projects critically. Piling on a lot of trendy terminology doesn’t necessarily mean the project is promising.
It has no intrinsic value and is not backed by anything.” These words were published under the headline The Brutal Truth About Bitcoin. It certainly sounds like fact because of the way that it’s been written, but the reality is this is entirely the opinion of one person. Get the latest crypto news, updates, and reports by subscribing to our free newsletter.
Don’t underestimate your gut feeling
Total Value Locked – Terra has a TVL of AU$19 billion, which is the second-highest amount of any blockchain. In contrast, decentralised stablecoin protocols like Terra fulfill the crypto vision of decentralisation. They provide all the value of a stablecoin while still being decentralised.
Fact-checking is a skill necessary not only for DYOR but also for filtering out the plethora of information that we come across on the internet on a daily basis. If you are interested in learning more about fact-checking and claim verification, have a look at the following material. However, claiming such associations and having them is not always the same thing. You always need to verify any claims a project makes, and that is probably the most critical takeaway from this guide.
The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. The project dyor meaning crypto team has purchased this advertisement article for $1500. It’s also relevant to check partnerships and any entity that may have backed the token or coin.
To dive into every type of info source in crypto, you must check various social media platforms to get a more holistic picture of crypto investment. With the help of fundamental analysis users are capable of reaching conclusions as to whether a project is undervalued or overvalued, as well as how it fares against rival projects. Since the process is incredibly extensive and requires a lot of research, investors can only rely on DYOR. Identifying which projects are ripe for investing accounts for a significant portion of DYOR. After all, arguing which block size is better can get you only so far.
Be aware of massive volatility with smaller cap coins and liquidation potential. And if you have taken a step deeper and begun farming and interacting with liquidity pools, be aware of liquidation from impermanent loss. When reviewing the background information of a coin, it is essential to get to know the team and developers behind the project. What happened to those projects– were they hacked or exploited?
DYOR in Cryptocurrency
Confirming this is necessary before using these services, but in any case, it still involves trusting the exchange or the service provider. Though at the same time, social media presence and engagement can be easily faked and manipulated. Creating a Telegram group or a Discord server and filling it with thousands of bots is very easy. Although bot users need to be identified on Discord according to its terms, scammers have little regard for terms and conditions. But that does not mean that all well-designed sites are also solid projects.
Or if the author has any vested interest in promoting the project. You can check their previous articles to see if they systematically “shill” this project or other projects in general. There are many ways for a project to build on Polkadot and Kusama. Perhaps the most direct one is to aim to become a parachain.