The crypto market has gained global attention, and with its increasing popularity, more people are joining the crypto-wagon every year. Crypto enthusiasts who recently began their crypto-journey often get the advice of “DYOR” from experts, educational articles, or blogs. “DYOR” is the most common phrase in the crypto world, which you will often come across as a beginner. Let’s find out what DYOR is and why it is crucial in the crypto space. 

What is DYOR? 

DYOR is often used by the crypto community, which stands for “Do Your Own Research.” The objective of DYOR is to spread awareness for making informed decisions about crypto investments. The crypto industry is still evolving, and because of being decentralized, it is unregulated. Due to the nascent stage of the market & lack of legal investor protection regulations, there are high chances of investors encountering scams or financial losses. In order to minimize all kinds of financial risks, investors are advised to do their own due diligence before investing in crypto.

Why is DYOR an essential part of crypto-investing?

Researching is an integral part of all kinds of financial investments, especially in crypto. Crypto markets are renowned for being highly volatile and unregulated. The impact of market hypes, press releases, and influencers has profound effects on the crypto market. To minimize the investment risk and to gain long-term benefits, investors are strongly advised to DYOR. 

Following are a few cases when DYOR saves the investors from falling into scams or minimizes the risk: 

• Shilling: 

Companies often promote their crypto through implicit advertisement. For influencing people to buy crypto, they often tie up with influencers with huge followings and incentivize them in return. Shilling is often used by genuine crypto companies as well as bad actors. So, when investors don’t research, they can easily be trapped by such promotions, whereas investors who believe in DYOR will never invest without knowing the true potential of the project.

• Investment under FOMO or the influence of market hypes: 

The crypto market is highly volatile, and often market hypes cause significant losses to investors who easily come under the influence of market sentiments. 

For e.g., during the bull market, many investors end up buying crypto at high rates due to the fear of missing out (FOMO) without doing their research. Such investors often incur losses by getting influenced by the market hypes. DYOR is fundamental to crypto investing as it can save you from market hypes & FOMO. It always helps you in making an informed and rational investment decision. 

• Misleading information by fraudsters: 

Many fraudsters often create multiple fake identities and social media accounts to influence users of the network. They intentionally create hype around a project by showing discussion threads of fake communities. These bad actors utilize social media & fake profiles in such a way that it gives an impression of genuine community discussion to the other users. People often get influenced by such scams and end up investing in worthless crypto projects. Investors who firmly believe in DYOR, they can easily find out by their research that the project is not worthy of investing in.

Checklist for DYOR

Following are a few significant factors to add to your checklist to DYOR: 

• Analyze project white paper
• Find out the fundamentals of the crypto & its use cases
• Ensure that the project is active 
• Check out community activity, developer activity & trading volume 
• Check out the team behind the project & their profiles’ credibility
• Check out their tokenomics 

DYOR is the only investment mantra to minimize the risk & enhance the gains by crypto investments. So, next time you wish to invest in any crypto, don’t forget to do your due diligence. If you enjoyed reading this blog and wish to learn more about crypto investing, join our Kassio Telegram community or follow us on our social media handles.