How To DYOR: 12 Ways To Research Crypto Like A PRO

Summary

This video script emphasizes the importance of 'DYOR' in the crypto space, guiding viewers to thoroughly research potential investments. It advises checking a project's website, whitepaper, team background, partnerships, and social media presence. The script also highlights the significance of evaluating market metrics, liquidity, and tokenomics to make informed decisions, urging investors to be smart and always do their own research.

Takeaways

• 🔍 DYOR stands for 'Do Your Own Research' and is a crucial principle in the crypto community.
• 🌐 Start your research by examining a project's website for professionalism and the presence of a whitepaper.
• 📄 A whitepaper provides an in-depth look at the project's technology, purpose, and roadmap, which is essential for potential investors.
• 🎯 Whitepapers also outline the project's goals, the problem it aims to solve, and its competition in the market.
• 🪙 Understanding tokenomics is vital, as it reveals the token's supply, allocation, distribution, and vesting information.
• 👥 The team behind a project is critical to its success; research their backgrounds and past projects.
• 🕵️‍♂️ Be cautious with projects that have anonymous team members, as this may raise red flags.
• 🤝 Check for partnerships and endorsements from reputable entities, but always verify these claims.
• 📊 Scrutinize the project's social media presence for community engagement and signs of authenticity.
• 📈 Evaluate market metrics such as market capitalization, trading volume, and liquidity to assess the project's standing.
• 🔒 Ensure the token's liquidity is locked to prevent rug pulls and protect investor interests.
• 🕳️ Beware of honeypot scams by using tools like Honeypot.is to check the legitimacy of a token.
• 📊 Supply metrics like total supply, circulating supply, and maximum supply are important for understanding a token's market dynamics.
• 💼 Check if the token is listed on reputable exchanges and supported by popular hardware wallets for security.

Q & A

What does the acronym DYOR stand for in the context of the cryptoverse?

DYOR stands for 'Do Your Own Research,' which is a common term used to emphasize the importance of conducting personal research before investing in cryptocurrency projects.

Why is it important to start researching a new cryptocurrency project from its website?

Starting from a project's website is important because it can reveal a lot about the project, such as its professionalism, the presence of a whitepaper, and other useful resources that provide in-depth information about the project's goals, technology, and roadmap.

What can be inferred about a project's website if it contains spelling mistakes, bad grammar, or awkward formatting?

If a project's website contains such issues, it may signal that something is amiss, indicating a lack of professionalism or even potential red flags that the project might not be legitimate.

What is a whitepaper and why is it important for potential investors?

A whitepaper is a document that explains in detail what a project is about, including its technology, purpose, and how the cryptocurrency was created. It serves as a pitch to potential investors and provides a roadmap for the project's goals and achievements.

How can unrealistic goals and projections in a whitepaper affect a potential investor's perception of a project?

Unrealistic goals and projections can make a project seem overambitious or unachievable, which may deter potential investors who are looking for projects with well-thought-out and attainable objectives.

What is the significance of a cryptocurrency's utility in the context of the project?

The utility of a cryptocurrency is significant because not all serve a practical purpose. A coin or token with utility has a specific function within its ecosystem, which can enhance its value and attractiveness to investors.

What information can be obtained from the tokenomics section of a whitepaper?

Tokenomics provides important metrics such as the maximum supply of the token, allocation, distribution, and vesting information, which are crucial for understanding the financial structure and potential value of the cryptocurrency.

Why is it essential to research the team and developers behind a cryptocurrency project?

The team and developers are essential to a project's success as they are the ones who will make things happen and determine the project's outcome. Their past experiences, especially in the crypto space, can provide insights into their capabilities and the likelihood of the project's success.

What should be the investor's approach when encountering anonymous team members in a project?

While anonymity can be due to genuine reasons like safety or regulatory concerns, investors should generally be skeptical about projects with anonymous team members. It's important to weigh the risks of investing in such projects against the potential rewards.

Why are partnerships and endorsements from prominent entities important for a cryptocurrency project?

Partnerships and endorsements can be signs of a trustworthy project, as they indicate that the project has been recognized and supported by other reputable entities in the industry, adding credibility to the project.

How can an investor evaluate a cryptocurrency's market metrics to make informed investment decisions?

Investors can evaluate market metrics such as market capitalization, trading volume, liquidity, and supply metrics (total supply, circulating supply, maximum supply) to understand the cryptocurrency's market presence, investor interest, and potential for price stability or growth.

What is a honeypot scam in the context of cryptocurrency investments, and how can investors protect themselves from such scams?

A honeypot scam is a deceptive practice where a cryptocurrency is presented as a legitimate investment, but once the funds are invested, it becomes impossible to withdraw them. Investors can protect themselves by using tools like Honeypot.is to check if a token is a honeypot and by scrutinizing the project's legitimacy and team background.

Why is it important for a cryptocurrency to be listed on reputable exchanges and supported by popular hardware wallets?

Being listed on reputable exchanges and supported by popular hardware wallets indicates that a cryptocurrency meets certain standards of security and reliability. It also ensures that investors have a safe and convenient way to trade and store their assets.

Outlines

00:00

🔍 Essential Guide to Conducting Your Own Crypto Research

This paragraph introduces the concept of 'DYOR' (Do Your Own Research) in the crypto space, emphasizing its importance. It suggests starting by evaluating a project's website for professionalism and the presence of a whitepaper, which should detail the project's goals, technology, and roadmap. The whitepaper also provides tokenomics, including supply metrics and distribution details. The team behind the project is crucial, and their background should be researched. The paragraph also advises on the skepticism towards anonymous teams and the importance of verifying partnerships and claims made by the project.

05:02

📊 Analyzing Social Media and Market Metrics for Crypto Projects

The second paragraph delves into scrutinizing a project's social media presence, cautioning against potential scams and emphasizing the importance of community interaction and genuine engagement. It discusses evaluating market metrics such as market capitalization, trading volume, and liquidity, which are crucial for understanding the project's market standing and investor confidence. The paragraph also touches on the importance of locked liquidity to prevent rug pulls and the use of tools like Honeypot.is to identify potential honeypot scams. It concludes with the advice to check where the token is listed and supported, highlighting the significance of reputable exchanges and hardware wallet support for security.

Keywords

💡DYOR

DYOR stands for 'Do Your Own Research,' a common acronym in the cryptocurrency community that emphasizes the importance of individual due diligence before making investment decisions. In the video, it is the central theme, urging viewers to investigate projects thoroughly to avoid falling for scams or poor investments. The script mentions DYOR multiple times, highlighting its significance in the crypto space.

💡Whitepaper

A whitepaper is a document typically used in the cryptocurrency industry to outline the technical details, purpose, and vision of a project. It is a critical resource for understanding the project's goals, technology, and roadmap. The script mentions the whitepaper as an essential starting point for research, noting that it provides in-depth information and a pitch to prospective investors.

💡Tokenomics

Tokenomics refers to the economic aspects of a cryptocurrency, including supply, distribution, and utility. It is a key concept in the video, as understanding tokenomics helps investors gauge the potential value and sustainability of a project. The script explains that whitepapers provide tokenomics details such as maximum supply, allocation, and distribution.

💡Utility

Utility in the context of cryptocurrencies refers to the practical use or function that a coin or token serves within its ecosystem. The script emphasizes the importance of determining if a project's coin or token has utility, as not all serve a practical purpose, which is crucial for its long-term value and adoption.

💡Team Background

Investigating the team behind a cryptocurrency project is vital, as the people involved can significantly influence the project's success. The script advises researching team members' past experiences, particularly in the crypto space, to assess their credibility and the project's potential for success.

💡Partnerships

Partnerships are alliances or collaborations between a project and other entities, which can lend credibility and support to a project. The script mentions that associations with prominent projects or institutions are often signs of a trustworthy project, but it also warns to verify these claims.

💡Social Media Channels

Social media platforms such as Twitter, Discord, and Telegram are important for gauging community engagement and project transparency. The script advises scrutinizing these channels to assess the project's community interaction and to be wary of potential scams or misinformation.

💡Market Capitalization

Market capitalization is the total market value of a cryptocurrency, calculated by multiplying the price by the total number of coins or tokens in circulation. The script uses market capitalization as a metric to evaluate the scale of investment in a project and to compare it with competitors.

💡Trading Volume

Trading volume refers to the total amount of an asset traded over a certain period, indicating liquidity and interest in the market. The script mentions trading volume as an important metric for investors to assess the activity and popularity of a cryptocurrency.

💡Liquidity

Liquidity in the context of cryptocurrencies refers to the ease with which an asset can be bought or sold without affecting its price. The script discusses liquidity as a factor that can reduce price fluctuations and facilitate an exit strategy for investors.

💡Reputation

A project's reputation is its standing or image within the community and the broader market. The script touches on the importance of a project's reputation, especially when it comes to listings on reputable exchanges and support on popular hardware wallets, as indicators of credibility and security.

Highlights

DYOR, a 4-letter acronym, is a common term in the crypto community, emphasizing the importance of personal research before investing.

The project's website is an essential starting point for research, offering insights into the project's legitimacy and providing resources like the whitepaper.

A poorly designed website with errors may indicate potential issues with the project.

Whitepapers are in-depth documents that explain the project's technology, purpose, and roadmap for potential investors.

Unrealistic goals and projections in a whitepaper can be a red flag for investors.

The utility of a project's coin or token is crucial, as not all cryptocurrencies serve a practical purpose.

Tokenomics, including maximum supply and distribution, can be found in the whitepaper and is vital for understanding the project's financial structure.

Understanding the project's goals and the team behind it is important, even if the technical details of the project are complex.

Researching the team's background and past projects can provide insights into the project's potential success.

Anonymous team members in a project can be a cause for skepticism, but there may be legitimate reasons for anonymity in the crypto space.

Partnerships and backing from reputable entities can be a sign of a trustworthy project, but always verify these claims.

Scrutinizing a project's social media presence is crucial to gauge community engagement and the responsiveness of the team.

High follower counts on social media do not necessarily equate to a worthy investment, as projects may incentivize promotion.

Evaluating market metrics such as market capitalization and trading volume is important for understanding a cryptocurrency's market presence.

Liquidity is key for an asset's stability and for developing an effective exit strategy.

Checking if a token's liquidity is locked can provide assurance against rug pulls and instill investor confidence.

Using tools like Honeypot.is can help identify potential honeypot scams in the cryptocurrency market.

Understanding supply metrics like total supply, circulating supply, and maximum supply is fundamental to assessing a token's value.

Listing on reputable exchanges and support on popular hardware wallets are indicators of a token's credibility and security.

Combining fundamental, technical, and on-chain analysis is recommended for making informed investment decisions in the volatile crypto market.

Being a smart investor involves continuous learning and research, as the crypto industry is young and prone to volatility.

Transcripts

This 4 letter acronym is one of the most  common terms being tossed around cryptoverse,  

up there with the likes of HODL and FOMO.  That’s right, we’re talking about DYOR.

We’ve mentioned DYOR a  bazillion times in our videos,  

but today we are going to give you  an idea of what we actually mean.

Without further ado let’s dive into  the research we keep talking about. 

Say a new project has caught your attention,  

whether due to hype on social media  or a recommendation from a friend,  

one of the best places to start your  research is the project’s website.

A project’s website can tell you  a lot of things. For instance,  

if you notice a website with  spelling mistakes, bad grammar,  

or awkward formatting, it may signal  that something fishy is going on right?

The website's feel and appearance not only act as  a good first litmus test for a project but also  

contain useful resources like the whitepaper which  goes in-depth into what the project is about.

They explain the technology and tell potential  investors how the cryptocurrency came to be and  

highlights its purpose. Basically, it’s  a pitch to you, the prospective investor.

Whitepapers will give you the roadmap of the  project to help you understand what they want  

to achieve over time. It’s common however for  some projects to have unrealistic goals and  

projections, but a well-thought-out  project will set reasonable goals.

When reading through a whitepaper take note of  the problem the project is trying to solve if  

any. Plus are there projects already  doing the same thing? If there are,  

is it improving upon what is already there  in the market? Also, try to determine if the  

project's coin or token has utility because not  all cryptocurrencies serve a practical purpose.

On top of the project’s purpose and roadmap,  whitepapers provide you with the tokenomics  

of the coin or token. From the tokenomics,  you will find out metrics like the maximum  

supply of the token, the allocation,  distribution, vesting information, etc.

Sometimes, the whitepaper might be too  technical for the average investor to  

understand but that’s alright. You don’t need  to understand every technical detail about the  

project but knowing what the project’s  goals are, how they will achieve them,  

and the team behind the project is  important. That’s right, the team.

When reviewing the background information  of a coin, it is essential to get to know  

the team and developers behind the project.  Because at the end of the day for any project,  

the people behind the scenes are  the ones who are going to make  

things happen and determine if the  project will be a success or not.

Say you are reading a whitepaper or going  through a project's website and you get to  

the team section, research each member  through LinkedIn, or just make a simple  

google search of their name. You might find  more information about them on some websites.  

This process might help you discover the team  members’ past experiences, especially in the  

crypto space. If they do have experience in  the space and have worked on other projects,  

try to find out how the projects are doing. Are  the projects successful or were they abandoned?

It’s also important that we mention that some  projects have anonymous team members. While there  

have been a couple of successful projects with  anonymous team members, you should generally be  

skeptical about this type of project. That said,  there are genuine reasons for staying anonymous  

in crypto, like for safety purposes or even to  prevent potential regulatory action further down  

the line. You’ll have to consider whether the risk  of investing in such projects is worth taking.

Moving on, it’s also relevant to check  partnerships and any entity that may have  

backed the token or coin. Associations with other  prominent projects or well-regarded institutions  

are often signs of at least a trustworthy  project - but do remember to verify these  

claims! Partnerships are usually displayed  on the project’s website and announced via  

social media which brings us to the next point,  scrutinize the project’s social media channels. 

Depending on the project, you will commonly  see its Twitter, Discord, Telegram, Reddit,  

and blog sites like medium linked on the  footer section of its website. Scrutinize  

each platform one by one and take note  of the number of followers or members.

In more interactive channels like Telegram  and Discord, are the moderators answering  

questions posed by the community or are  members getting ignored? Be extra careful,  

especially on platforms like Telegram  which is known to be a breeding ground  

for scammers. You might encounter scam  artists posing as moderators and attempt  

to get you to give up your personal  details or click on phishing links.

Same for channels like Twitter and  Reddit. What are fellow investors  

saying about the project? Keep in mind  that just because a coin or token may  

have an immense following and social  buzz doesn’t mean it is warranted.  

Projects are known to give out gifts to  users who shill their tokens or coins. 

Next, make sure to evaluate the cryptocurrency’s  market metrics. To check this information,  

visit the most trusted cryptocurrency aggregator  by investors, CoinGecko. Once you get to the  

coin’s page you can start by checking out its  market capitalization, which shows you how much  

money has been invested into the project. It  is calculated by multiplying the price of the  

cryptocurrency by the total number of coins  or tokens in circulation. It may be useful  

to compare to more established competitors to  consider if its valuation makes sense. CoinGecko  

also provides the coin’s trading volume. Trading volume is an important metric  

that investors use to see how often  an asset is changing hands. Next,  

How liquid is the asset? Liquidity may not only  mean fewer fluctuations in the price of the  

asset but also aids in the development of an exit  strategy, making it easier to sell your holdings.

Speaking of liquidity, one of the ways  you can protect yourself from rug pulls  

is to check if the liquidity of the coin  or token is locked and for how long. This  

provides confidence to the investors that  the token developers will not run away with  

the liquidity money. Remember to apply the same  when interacting with liquidity pools in DEXs.

Ever heard of honeypot scams? Like Hotel  California, you can check in but can never  

check out for these tokens, which is why the  chart usually looks like this. To check if a  

token is a honeypot or not, copy the token  address paste it on tools like Honeypot.is. 

You should also pay attention to the supply  metrics of the coin or token. Generally,  

there are three types of market supplies,  that is, total supply, circulating supply,  

and maximum supply. We have a video solely  dedicated to tokenomics, check it out here!

Last but not least, remember to check out  where the token is listed. Is it available  

on reputable exchanges? Prominent exchanges  usually have more stringent requirements for  

listing in order to protect their customers and  reputation. You could also check if the token  

is supported on popular hardware wallets which are  essential to safety and security in the long term. 

What we have covered so far in this video  is a good start to doing your own research  

but note that we have barely scratched the  surface. Smart investors combine fundamental,  

technical, and even on-chain analysis  to make informed investment decisions.

We understand that none of this stuff  is easy, but is totally necessary as  

the crypto industry is still young and  characterized by enormous volatility and  

vulnerability. Naturally, not all your  investments will be right on the money,  

but the more informed you are, the  higher your chances of success.

So be a smart investor and always DYOR! 

Let us know in the comments  how you do your research. 

Remember to like, subscribe and follow us  on all our socials for future alpha! See ya!