They are active in the
various Polkadot and Kusama channels, and some of
them are Polkadot Ambassadors, or generally
prominent members of the ecosystem. If you are looking for an example of good documentation, look no further than our own
wiki. Of course, you should not expect to find such extensive
documentation on newly launched projects.

Many teams choose to keep their code private to protect their intellectual
property. And several teams that do so have gotten a
General Grant, under which members of the grants
review team review their private code. Furthermore, a legitimate project does not necessarily mean it will also be successful, and this
guide is not meant to be viewed as financial or investment advice. Disclaimer – Information found on our website is not a recommendation or financial advice.

Crypto Guides

It’s a reminder to take control of your own money and in the exciting world of crypto, NFTs and blockchain, it’s really important as markets can move very quickly and it takes time to build your knowledge. If you don’t do your own research as an investor, you risk trusting an unverified source and losing all of your capital. Many scam projects can be hard to spot at first, and it’s not uncommon to see new or inexperienced traders lose significant assets because they were drawn in by marketing tactics. An open-source project promotes transparency, builds trust, and potentially ensures project team
honesty. Additionally, it makes it very easy to track the project’s progress and see how active the
team is in developing it. Furthermore, Web3 Foundation is not the only entity in the ecosystem that provides grants.

It gives you a quick overview of your portfolio, so you always know how your coins are performing. Finally, you will receive a free multi-coin wallet to store all of your coins when you trade on our crypto exchange. If you’ve decided that a cryptocurrency is worth investing in, it’s time to make your move.

Research the founders and team

Investing a large amount of money in a product without knowing anything about it would be akin to gambling. Let’s look at some of the main reasons why investors are encouraged to conduct their own studies. Of course, that doesn’t mean that anyone who hypes up their project is a scammer. If the project is legitimate but weak, it might fail to deliver either way. They engage in aggressive marketing called shilling, which is meant to excite you. This is important to include in the DYOR process because it’s ultimately the team that is responsible for the value of the underlying cryptocurrency.

dyor meaning

When excitement overwhelms you, you rarely think about the consequences. The findings also showed that the crypto market in Australia has rapidly grown with almost 18 percent of Australia’s population holding cryptocurrencies as of 2021. A hard fork is a significant change that permanently splits a blockchain into two different networks when the nodes fail to reach a consensus. Decentralized Finance (DeFI) refers to financial applications and services that are built on a blockchain and operate without a central governing authority (hence, “decentralized”). The phrase has now permeated into popular culture, and is widely used to encourage amateur investors in any arena to navigate a minefield of misinformation.

Cointree is a registered digital currency exchange with AUSTRAC (the Australian Government regulatory and monitoring body for AML/CTF) and a partner of Blockchain Australia. The level of financial returns promised by any given crypto project is most likely inversely proportional to its chances of success. Because the shills are now watering down its meaning, and in some cases using it dyor meaning to more aggressively market projects. Sometimes there are so many shills screaming support for some project that when its token inevitably loses 99% of its value weeks after launching, nobody can quite believe what’s happened. Nowadays, many projects use Telegram, Discord, or similar apps for community engagement, as well as
the sole channel for communication, updates, and support.

Often, crypto projects will have underlying cryptocurrencies tied to them. So, if you’re looking to invest in a cryptocurrency, you should definitely DYOR on the project to which it’s a part of. Shilling is when a person or group of people aggressively promotes a crypto project to generate excitement and bring in investments. They drive the token’s market value up before the issues with the project come to light and the project’s value plummets. These projects often pay celebrities or influencers to back the project and lend an air of credibility to the short-lived scam. For instance, in 2016, Dr. Ruja Ignatova promoted OneCoin as the next big cryptocurrency and a “better Bitcoin,” but the blockchain behind OneCoin never even existed.

They forget about caution, risk assessment, and making informed decisions. The scammer uses this information to their advantage as they proceed to rob them of their money. Before they even realize they were scammed, the scammer is long gone. DYOR is a very important concept to follow in crypto as well as other areas. In crypto, it’s especially important because regulations over crypto remain vague and underdeveloped. Unfortunately, this means that there are a lot more scams than in traditional financial markets.

Industry Research

It refers to the need for prospective investors to look into the crypto projects themselves and figure out whether they are worthwhile investments or scams. Similarly, when there is a FUD (fear, uncertainty, and doubt), investors can panic sell based on the influence of commentators and investors on social media. The so-called “Weak hands” tend to panic when the market begins to fall, and the negativity in the community intensifies.

  • The level of financial returns promised by any given crypto project is most likely inversely proportional to its chances of success.
  • The idea of this term is to reduce the number of uninformed investors by encouraging users not to blindly follow someone else’s words.
  • It’s equally important to research whether or not existing technologies would make this project’s technical foundation irrelevant in the near future.
  • Investors who rely on the opinion of an influencer, and not on their own research, can be persuaded to buy a dubious asset.
  • A cryptocurrency created by the pseudonymous developer(s) Satoshi Nakamoto.
  • But any project can claim that, so the existence of this
    statement on a project’s site infers no information about the project’s legitimacy, and it’s
    certainly not a “seal of approval” by Web3 Foundation.

Every crypto founder has a story to tell about a problem they solve. They put in the work, build a team, and show how they will change the world. But that doesn’t guarantee that every project will be a great investment. That’s why it’s our job as an investor to put in the work and select the very best projects.

If the solution they’re building doesn’t turn out to be what they said it would, the price of the cryptocurrency will most likely struggle. A term used to encourage fellow crypto investors not to blindly trust any claims, “do your own research” has been overused by shillers recently — how exactly can you DYOR? Shilling is a common practice in cryptocurrency where people tend to advertise the coins that they own in hopes of positively affecting the price.

dyor meaning

Understand why the use of blockchain technology is inherent to the project’s very existence. That is to say, why has the team chosen to build its solution with blockchain? Often, the project will have blog posts expanding on this—as it’s extremely important. Find out whether the company behind a given crypto project has previously raised venture capital and/or private equity.

How to Study Cryptocurrency? Popular DYOR Methods

Online criminals use hype and fear of missing out (FOMO) to their advantage. They create a sense of urgency — a fleeting opportunity — and a now-or-never situation. Unaware of the danger, the newcomer to the industry gets drawn into the hype. They heard the stories of volatility and the importance of seizing the opportunity before it slips.

It’s no wonder that those eager to learn will seek other, more experienced crypto market participants, engineers, analysts, and traders to help fill in the gaps. Cryptocurrencies, and topics related to cryptocurrencies, can get very technical and be complex to understand. When it comes to articles, the first thing to check is if the article is genuine coverage or a paid
press release, especially when a project displays this coverage prominently on their page.

However, the large and established VCs all use in-house analysts who specialise in finding and vetting crypto projects. As such, when a project receives backing from a big investor, that’s usually a good sign. The first step here is to read around “the problem” elsewhere to check that it really exists, and then you can look for better-known platforms that might have solutions lined up already. You should also look at the whitepaper’s layout, writing style and professionalism.

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