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?

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?

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?

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?

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)?

6. Technical Analysis

  • Use price charts:

    • Analyze price trends, support, and resistance levels.

    • Identify unusual price movements or patterns.

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?

8. Check News and Partnerships

  • Official News:

    • Does the project collaborate with reputable companies or governments?

    • Has it achieved significant milestones within specific timeframes?

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?

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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