Enjoy this article as it explains why you need to do your own research (DYOR) before buying or investing in crypto.
Since 2009 when Satoshi Nakomoto created Bitcoin, the crypto industry is not on the spot and has continued to evolve. The market has grown tremendously with new cryptocurrencies, and data shows there is nearly 19,000 crypto in the market.
Clearly, this large number allows buyers and investors to pick from a wide range of cryptocurrencies available in the market. However, this large figure is not helpful to newbies because it confuses them about which coin to buy.
In fact, amid this confusion, this category of buyers often ends up buying valueless coins. Apart from this, they could end up with scam coins that its teams only target investors’ funds. A good example of such is the SQUID coin.
Unarguably, when newbies experience this in their first entry into the market, it makes their crypto adventure sour. They feel discouraged and possibly unwilling to continue the crypto adventure as envisaged.
Well, this is bound to happen at that stage of their crypto journey because they only follow the market sentiments. They buy based on the coin’s popularity and what people say about it forgetting it could be shilling. This confuses newbies, but they need DYOR to succeed in their journey.
Newbies need DYOR
DYOR is a common word in the financial market, used regularly in crypto. The word DYOR is an abbreviation for ‘Do Your Own Research. This sounds ordinary; however, it is very powerful and can help newbies to some extent.
Rather than jumping in to buy a coin based on its popularity, the application of DYOR will help decide whether to buy. There is no magic in that; DYOR only gives you some confidence about the coin.
How to do it
As a newbie in crypto, you do not need to make a buy decision based on what people say. Do not ask anybody. This is because those persons talking about the coin could be shilling it. Shilling is a common practice where people promote their own coin to give it fake popularity.
You can DYOR by visiting genuine sources, like CoinMarketCap and CoinCheckup. These sites give you some needed information about the price, trading volume, and the coin’s market cap.
Apart from that, find out the use cases of this coin and the people behind the project. In addition, you won’t ignore what people say totally, but you can visit BitcoinTalk Forum for discussion about such coins.
In conclusion, find out if notable exchanges listed the coin. While researching this coin on exchanges, it might not be available on all of them. You can see it on Binance and Coinbase, while Huobi is yet to list it.