Steps in Cryptocurrency

Yaser Rahmati | یاسر رحمتی

DYOR Strategy in Cryptocurrency

The DYOR (Do Your Own Research) strategy is one of the most critical principles for investing in cryptocurrencies. This strategy empowers you to make well-informed decisions based on personal research, avoiding reliance on rumors or external recommendations.

Steps of DYOR Strategy in Cryptocurrency

1. Understand the Project and Its Goals

  • Official Website:

    • Review the project’s website for initial information.

    • Read the whitepaper to understand the project's goals, use cases, and roadmap.

  • Questions to Answer:

    • What problem does the project solve?

    • What are its real-world applications?

    • Is the idea innovative or just a copy of existing projects?

2. Examine the Team Behind the Project

  • Team Information:

    • Check the team’s profiles on LinkedIn and other platforms.

    • Look for their professional experience in blockchain or technology.

  • Questions to Answer:

    • Is the team transparent, and are their identities verified?

    • Do they have sufficient experience in technology or investment?

3. Analyze the Project’s Technology

  • Source Code and Technology:

    • If the project is open-source, review its GitHub repository.

    • Analyze whether it has its own blockchain or relies on existing ones.

  • Questions to Answer:

    • Does the project use advanced and practical technology?

    • Is the code actively updated?

4. Study the Market and Competitors

  • Compare with Competitors:

    • Identify similar projects and key competitors.

    • What makes this project stand out from the rest?

  • Market Target:

    • What market is the project addressing (Layer 1, 2, 3)?

    • What is the growth potential of that market?

5. Fundamental Analysis

  • Market Cap:

    • Review the asset's market capitalization (price × circulating supply).

    • Projects with lower market caps often have higher growth potential but come with higher risks.

  • Trading Volume:

    • Check daily trading volume to evaluate liquidity.

  • Token Distribution:

    • How are the tokens distributed among the team, early investors, and the public (Tokenomy)?

6. Technical Analysis

  • Use price charts:

    • Analyze price trends, support, and resistance levels.

    • Identify unusual price movements or patterns.

7. Evaluate the Community

  • Social Media Activity:

    • Review activity on platforms like Twitter, Telegram, Discord, and Reddit.

    • Observe user engagement and common questions.

  • Questions to Answer:

    • Does the project have a vibrant and active community?

    • Do the developers interact with users?

8. Check News and Partnerships

  • Official News:

    • Does the project collaborate with reputable companies or governments?

    • Has it achieved significant milestones within specific timeframes?

9. Assess Risks

  • Legal Risks:

    • Is the project compliant with regulations in various countries?

    • What is the likelihood of bans or legal challenges?

  • Technical and Financial Risks:

    • Does the project rely heavily on external factors?

    • What are the chances of being hacked or facing other threats?

Tools for DYOR

  • CoinMarketCap and CoinGecko: To review coin/token details.

  • Etherscan and BscScan: To check transactions and smart contracts.

  • TradingView: For technical analysis.

  • GitHub: To review the project’s source code.

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