DYOR concept
DYOR stands for Do Your Own Research. It means self-research skills, in investing it means finding information about a project to research whether to invest or participate in the project or not.
Why DYOR?
Without DYOR skills, you will have to invest in projects that you do not understand or can only rely on the persuasion of others. This is a big no-no in investing because you could be scammed, leading to investment losses, or even total loss. That's why DYOR skills are necessary when investing in anything, from real estate, stocks to cryptocurrencies.
DYOR in Crypto investment - electronic money
Although the meaning is no different from the original concept, DYOR in the field of cryptocurrency is often used as a warning to investors to deny responsibility. That means when you receive this warning, you must research and verify the information yourself and be responsible for all your investment decisions.
What is DYOR like?
Find reputable sources of verified information
If the project you are researching is a serious project, then there will certainly be more or less newspapers or websites introducing that project. In addition, there are also Coingecko, Coinmarketcap which are important websites to know the basic indices of the coin you want to learn about.
Even more in-depth, you can absolutely study more about the reports and research of famous websites in the industry such as TheBlock, Messari, Glassnode, Dunes Analytics,... Note that these are English websites so you should You need to use English to research on these websites.
There is a simpler way to DYOR. If you don't know which source is the best reference, you can search on Google with the syntax: (Project name) + (what is) For example, what is Solana, what is EOS? What, what is Paxos. Google will display a lot of information for your reference.
If a project does not have a reputable newspaper reporting on it but only has the project owner's "self-interpretation" on media channels, then it is definitely a trash project not worth investing in.
Read the Whitepaper
Whitepaper is the core content of the cryptocurrency project. You should practice the habit of reading the Whitepaper carefully to understand the project clearly. Junk or fraudulent projects often have sketchy Whitepapers or are stolen from famous projects. If you have read the Whitepaper and see that the project is nothing special, then 99% of the time it is a garbage project not worth investing in.
See what others are saying on the internet
A good project is often characterized by having many people discussing, regardless of whether there are consensus or disagreements. If you see a project with a majestic Whitepaper, many websites praising that project to the sky, but you don't see anyone saying anything about it on forums, Reddit, Bitcointalk, then there is a high suspicion that it is a scam project. only get “Shilling”.
Check actual data
After going through the above steps and finding no issues, there is still a possibility that it is an over-hyped cryptocurrency project. You can buy the project's coins, use some of the features of that ecosystem to see if it is as advertised or if the project is just a paper tiger. For example, Onecoin, Pi Network, Bitconnect and a series of projects with similar multi-level and ponzi models are projects that are highly hyped but are completely empty inside. You will lose everything when participating in such projects.
If you have experience with coding, you can check the project's github to see if it is continuously updated or not. For a serious project, the team will always be active and update the code no matter what the market is like.
Compare with other projects of the same type
Except for a few projects that are leading in an area that no one else has done, most Blockchain projects have similar projects for your reference. You can compare the project you DYOR with other projects of the same type to see what advantages, disadvantages, community or scale it has to evaluate the value of that project. For example, now there are too many cryptocurrency projects using POW and POS algorithms. A project that only uses the above algorithm without any significant improvements is not worth investing in.
summary
The cryptocurrency field is an investment place with extremely high profit rates but at the same time there are many risks with countless hackers or scammers. Therefore, equipping yourself with DYOR skills is extremely important to be able to survive and most importantly, to believe in yourself and not put your trust in anyone else.