Doing Your Own Research (DYOR) Will Save You From Bad Projects | Newbies Guide |
We are all aware that new projects are constantly being developed in the cryptocurrency market. Many investors have lost a significant amount of money, particularly during the bear market, and many are seeking fresh projects to make up for the loss.
The common phrase "DYOR," which stands for "Do Your Own Research," can help you avoid investing in shady projects or scams involving cryptocurrencies and altcoin as a newbie. Everyone conducts their own research, but you must know the reliable sources to use; don't rely just on your mentor. Some rely only on their coaches and other individuals they have confidence in. Please don't misinterpret what I said; I didn't suggest you shouldn't trust your mentor, but you can always perform your own research anytime your mentor sends you a message about a new project to be secure. Anyone can make a mistake.
After the crash of FTX, there are a lot of new projects ongoing and many projects will rock the market very soon. We shouldn't forget that scammers are working day and night to steal the hard-earned money of anyone that is careless or refuses to do proper research.
You might not know how to conduct the right investigation, but I have some suggestions that I believe will be very helpful. They also enable me to discover many fraudsters without wasting my time or money on the project.
Examine The Whitepaper
The goal, vision, and strategy of a good cryptocurrency project are outlined in the whitepaper. Don't waste your time researching a project further if it lacks a whitepaper. That is a major red flag. White papers for some poor projects may exist, but you should thoroughly review them. Some white papers don't contain a road map for implementation, so make sure the white paper is understandable.
Developer And Team Research
It is important to be aware of the project's founder and the team behind it. Scammers have been known to create fake founder biographies for some projects. You can conduct your own research by looking up the founder's profile on social media, such as Twitter, LinkedIn, Facebook etc.
Some questions need to be answered: Are there any followers on the developer's social media pages? Do they communicate with their supporters? False profiles are simple to spot, they have trouble coming up with content and engaging with their followers. Their likes will be insignificant compared to the number of followers they have on their profile because they have many sponsored followers. This is another suspicious indication of a fake developer, and their project can be fraudulent. Use the same approach when researching their team members' profiles.
Token Transactions
Check the token transactions; some reputable developers make the sales visible to investors. If this is the case, you can continue your research with the confidence that you are still on the right track. However, some companies hide their trade sales, and you should consider this if you can't track the growth of the token sales. To monitor the transaction volume and stability, visit https://www.coingecko.com. If it has a good trade volume, research it for a while before deciding whether to invest in the project.
Competitive Analysis
If you want to invest in a new project, carefully examine the features of the cryptocurrency. It might share the same goals as another cryptocurrency that is currently successful on the market. Competing with an established project could have an impact on a new project because the established project will always have an advantage over the new one. Investors who already have faith in the current project may find it challenging to put money into the new one. Before investors start to believe in the new business, it could take some time.
Finally, use social media sites like Twitter, YouTube, Reddit, etc. to further investigate your intended cryptocurrency investment. They transmit valuable information about cryptocurrencies. You must exercise diligence and never take an offer that seems too good to be true because DYOR is a continuing activity. To keep informed about crypto news, always subscribe to the correct sources. Invest wisely.
Thank You All For Reading
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