What is DYOR: Meaning of the Word

Perhaps the team is a
strong proponent of privacy, or they want their work to speak for itself. Still, you should try and
find out who is behind the project and what they are doing. For developers, their GitHub activity
may be a stronger indicator of honesty. Other team members might be heavily engaged in their
community, providing guidance and answers, which is always a good sign.

Fraudsters can create multiple social media accounts to discuss a project or asset. They try to inflate the project by creating the illusion of community participation and initiating discussions with real users of social networks. Then the discussion is supported by an additional group of accounts on social networks under the control of the attacker. This may give the false impression that many people are delighted with the project.

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Our wiki, after all, covers a whole ecosystem and was
populated over the course of multiple years. Updates are also constantly being pushed out and edits
are consistently being made. Nevertheless, this wiki provides a good example of the documentation a
legitimate project should provide.

If a potential investor has not conducted a thorough study of the fundamental part of the project that is progressing in this way, he may be persuaded to invest in an asset that has no real value. Investors can explore various important areas when researching the project. dyor meaning Team members, their track records and biography, project roadmap, previous successes and failures, and community engagement are all important starting areas for study. It is good practice to cross-compare relevant information from several authoritative sources.

How To Do Your Own Research (DYOR) On Cryptocurrencies

So, an excellent site does not necessarily indicate a legitimate
project, a poor site might indicate an illegitimate one, but the site quality alone usually is not
enough to reach a conclusion. None of these metrics are sufficient alone; you need to look into all
of them to make an educated decision. 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. 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. Besides their community, projects that are serious about building on
Polkadot usually engage with the broader
Polkadot community.

This guide is
meant to help you find out how to do your research better when you come across a project that seems
interesting. What it’s not meant to do, is label any single project as legitimate or not, or
make that decision for you. Sybil Attack is an attempt by attackers to harm the network using fake requests or accounts. This type of attack can be applied to several areas of cryptocurrencies, but in this example, we will focus on how it can affect investor decisions. It simply reminds traders not to trust everything in the crypto industry mindlessly.

But not all projects that build a chain using Substrate aim to become a
parachain. Some use it simply because of its infrastructure to build their customised chain, without
any plans to connect to the Relay Chain. And other projects may aim to become a parachain only on
Kusama or directly on Polkadot.

We’ll unpack how you can approach some of these questions in this article. The goal is to help you frame the research you complete, so you can make trading decisions that align with your values, goals, and risk appetite. For example, work tokens (e.g. Livepeer’s LPT token) are fundamentally different to utility tokens (e.g. the Brave browser’s Basic Attention Token (BAT)). And these are fundamentally different to cryptocurrencies (e.g. the Bitcoin network’s bitcoin (BTC)). Examining the quality of a project’s partners can be a great way to figure out how promising their solution—and thus the potential value of its cryptocurrency—is.

DYOR reminds everyone that investment is only as good as the study is, and even then there is no guarantee of success. Risks represent the natural price of capital gains offered by investment activities. The best thing investors can do is arm themselves with sufficient https://www.xcritical.in/ knowledge and research to help make effective decisions and reduce risks. Projects or assets that wish to be promoted can sometimes attract well-known bloggers and reputable personalities to use their platform and promote the project among their audience.

Blockchain Technology Use Case

Although bot users need to be identified on Discord according to its terms, scammers have little
regard for terms and conditions. If a project team constantly updates their product, it is always a good indication that they are
serious and passionate about building. Regularly releasing new features and upgrades, fixing bugs,
updating their site and notifying the community of these changes are good earmarks of a legitimate
project. Stablecoins like USDC and USDT have secured hundreds of billions of dollars worth of value. There’s a clear product market fit for them in the crypto ecosystem. However, these projects remain centralised at their core, as the dollars backing the coins are held in the traditional financial system.

And if you see such claims about Web3 Foundation, you can
be sure they’re false because Web3 Foundation does not partner with, or endorse, ecosystem
projects. You can also check our top performing portfolios to see what cryptocurrencies investors are holding in the best performing portfolios over the past 24 hours. BitDegree Learning Hub aims to uncover, simplify & share Web3 & cryptocurrency education with the masses. Join millions, easily discover and understand cryptocurrencies, price charts, top crypto exchanges & wallets in one place. Now that we’ve figured out why DYOR is important, let’s look at some of the techniques traders and investors use to do the right research. In addition, some tactics used by unscrupulous players in the cryptographic space are aimed at deceiving inexperienced investors — or those who have not conducted high-quality research.

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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. DYOR stands for “do your own research”, a phrase frequently used in various crypto communities.

For example, such a promotion may be inserted as part of a discussion or product overview. Investors who rely on the opinion of an influencer, and not on their own research, can be persuaded to buy a dubious asset. This is one of the more speculative questions on this list, but it’s nonetheless still important. If you wanted to look up exactly how much money the popular crypto shills charge for a post, crypto sleuth @zachxbt has helpfully put together a database showing just that.

• If you wanted to look up exactly how much money the popular crypto shills charge for a post, crypto sleuth @zachxbt has helpfully put together a database showing just that.
• Without proper scrutiny, investors are more likely to sell their assets at a loss when they fall under the influence of negative market sentiment.
• That’s because the price of the project’s cryptocurrency usually becomes more volatile in the period leading up to a key date.
• The term is also often used as a disclaimer when cryptocurrency traders and enthusiasts make public posts or share their market analyses on social media platforms.
• Also, sometimes you’ll find that projects have received non-equity grants through accelerator programmes.
• Before making financial investment decisions, do consult your financial advisor.

Investors could dollar-cost average into a position expecting to ride out the waves, make an initial investment only, or trade daily. The important thing is to take action and follow the investment strategy that is right for you and your investment goals. Given that it already has a market cap of tens of billions of dollars, it’s unlikely to rise 1000% in a week like some small-cap coins.

The problem here is that these posts don’t encourage you to think for yourself (and DYOR), but rather blindly follow along with whatever the influencer suggests you should do. The cursory DYOR signoff below their promotion merely serves as a disclaimer that alleviates any responsibility from the shiller. There’s then a lengthy explanation saturated with unnecessarily technical language, which is finally followed by a tiny disclaimer and the ever-present DYOR.

“Do your own research.” Or, simply, “DYOR.” It’s an acronym you see a lot in the crypto and overall investment space. Warren Buffett, arguably the most successful investor alive, argues that if you don’t feel comfortable holding a stock for 10 years, you shouldn’t hold it for 10 minutes. Accordingly, if you aren’t willing to hold a crypto for a decent length of time, you probably haven’t done enough research to invest in it (unless of course you’re a day trader).