Steps in Cryptocurrency

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DYOR Strategy in Cryptocurrency

The DYOR (Do Your Own Research) strategy is one of the most critical principles for investing in cryptocurrencies. This strategy empowers you to make well-informed decisions based on personal research, avoiding reliance on rumors or external recommendations.

Steps of DYOR Strategy in Cryptocurrency

1. Understand the Project and Its Goals

• Official Website:

  • Review the project’s website for initial information.

  • Read the whitepaper to understand the project's goals, use cases, and roadmap.

• Questions to Answer:

  • What problem does the project solve?

  • What are its real-world applications?

  • Is the idea innovative or just a copy of existing projects?

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2. Examine the Team Behind the Project

• Team Information:

  • Check the team’s profiles on LinkedIn and other platforms.

  • Look for their professional experience in blockchain or technology.

• Questions to Answer:

  • Is the team transparent, and are their identities verified?

  • Do they have sufficient experience in technology or investment?

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3. Analyze the Project’s Technology

• Source Code and Technology:

  • If the project is open-source, review its GitHub repository.

  • Analyze whether it has its own blockchain or relies on existing ones.

• Questions to Answer:

  • Does the project use advanced and practical technology?

  • Is the code actively updated?

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4. Study the Market and Competitors

• Compare with Competitors:

  • Identify similar projects and key competitors.

  • What makes this project stand out from the rest?

• Market Target:

  • What market is the project addressing (Layer 1, 2, 3)?

  • What is the growth potential of that market?

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5. Fundamental Analysis

• Market Cap:

  • Review the asset's market capitalization (price × circulating supply).

  • Projects with lower market caps often have higher growth potential but come with higher risks.

• Trading Volume:

  • Check daily trading volume to evaluate liquidity.

• Token Distribution:

  • How are the tokens distributed among the team, early investors, and the public (Tokenomy)?

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6. Technical Analysis

• Use price charts:

  • Analyze price trends, support, and resistance levels.

  • Identify unusual price movements or patterns.

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7. Evaluate the Community

• Social Media Activity:

  • Review activity on platforms like Twitter, Telegram, Discord, and Reddit.

  • Observe user engagement and common questions.

• Questions to Answer:

  • Does the project have a vibrant and active community?

  • Do the developers interact with users?

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8. Check News and Partnerships

• Official News:

  • Does the project collaborate with reputable companies or governments?

  • Has it achieved significant milestones within specific timeframes?

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9. Assess Risks

• Legal Risks:

  • Is the project compliant with regulations in various countries?

  • What is the likelihood of bans or legal challenges?

• Technical and Financial Risks:

  • Does the project rely heavily on external factors?

  • What are the chances of being hacked or facing other threats?

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Tools for DYOR

• CoinMarketCap and CoinGecko: To review coin/token details.

• Etherscan and BscScan: To check transactions and smart contracts.

• TradingView: For technical analysis.

• GitHub: To review the project’s source code.

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