The Importance of DYOR for Beginners Before Buying Tokens
In today’s technological era, information can spread very quickly in cyberspace which results in frequent misinformation. The media has a great influence on the dissemination of information that may not fully represent the actual reality. Moreover, Google is already dominated by paid advertisements, so sometimes it is difficult to find a more complex answer because it is buried by advertisements.
DYOR is a term that is currently gaining popularity, especially in the world of token or crypto coin investment. Crypto influencers are passionate about embedding the DYOR slogan when doing analysis or sharing investment advice on their social media posts.
In the crypto world, shilling is very familiar, where people tend to advertise their coins in the hope that it can positively influence the price, making it increasingly difficult to distinguish between neutral posts or shillings. In addition, there is the Sybil Attack, which is an attack carried out by people with bad intentions who create fake accounts and try to trick investors into buying cryptocurrency based on popular posts on social media platforms (Reddit, Twitter, and Facebook).
Therefore, when discussing cryptocurrencies, it is very attached juxtaposed with the DYOR slogan, so that investors do not easily believe the information that is widely spread. Apart from the spread of the DYOR slogan, do readers actually understand the meaning of the slogan? Does the reader already understand how to apply it? Check out this article to get the answer.
What DYOR means in the cryptocurrency world
DYOR stands for Do Your Own Research which means to do your own research. Before you decide to buy coins/tokens, trade, stake or make other types of investments, it is very important to DYOR first. By doing DYOR, it means that you do in-depth and critical research. So you can find out the benefits, and risks, and can determine the type of crypto investment that is right for you.
DYOR aims to research and understand cryptocurrencies before investing so that they can understand the reasons for supporting a project and/or buying coins or tokens. If DYOR is really carried out, it will reduce the number of investors who only follow the trend or FOMO.
Tips for doing DYOR before buying crypto tokens
Before you dive into the world of cryptocurrency, it is very important to DYOR or does your own research so that you can make your own decisions and not depend on other people to make investment decisions. There are several important analyzes for newbies, including:
1. Sentimental Analysis
This analysis relates to someone’s feeling about seeing projects (tokens or coins), identifying which projects you think to deserve to be supported. Of course, doing this analysis will take a long time, but don’t be easily satisfied with the results of your research. Look for information through the project’s official website, learn about the marketing style, find out who the team behind the project is, who they work with, and more.
Sentimental analysis is also concerned with what the market says about a project. It is also important to know the views of leading people in their field (crypto influencers, developers, crypto observers, etc.) on the project. However, this analysis is easy to manipulate, making it difficult to study sentimental analysis. So it is advisable to make your own decisions in investing.
2. Technical Analysis
Technical analysis is the least biased analysis because the analysis is based on data. This analysis is carried out by observing price chart movements in the investment market, examining indicators, and testing trading strategies. However, this technical analysis is quite difficult to learn, it may take a long time for you to understand crypto technically.
3. Fundamental Analysis
Fundamental analysis is an evaluation strategy used to determine the value of an asset in the market. This analysis can be said to be the easiest because everyone can do it. Ways that can be done in the fundamental analysis are studying the actual idea of a project, reviewing business practices, viewing whitepapers, roadmaps, project development and progress, marketing strategies, blockchain activities, and others.
After reading this article, you already understand the steps that must be taken before deciding to invest. What projects are on your list for research? Is the Litedex project one of them? Don’t forget to always DYOR or make your own decisions before investing!