Opening a topic on even some of the most obscure tokens can yield a lot of responses and opinions based on first-hand experience. Naturally, you should take into account that all and any information sourced from Reddit is based strictly on subjective personal opinions. R/Cryptocurrency is a good qualitative, not a hard-data-based quantitative research tool. DeFi Pulse is a crypto research and news website which specifically tracks TVL stats for the largest DeFi projects. While the website is a good source for general information about crypto and blockchain, its killer feature is the up-to-date TVL stats.
After reading this guide, you will be able to execute this strategy and get a better overview of the characteristics that can increase a coin’s price. In this article, I want to introduce you to a 7-point research method that I use to research the cryptocurrencies I am interested in. If you’ve been in crypto long enough, you probably know that asking others for advice can be a total waste of time. Most people are not qualified enough to justify their opinion and those that do, usually keep it to themselves. If you can find a good community that is talking about the project, you’re more likely to come up with additional questions, seek more answers, and gain more knowledge.
- Even world-class investors and traders rarely swing more than 1% of their total portfolio size into a new investment position, so act accordingly.
- The problem is that if you don’t know what to look for, or how to interpret the metrics and charts, it’s kind of useless.
- Now whether you should be getting your Bitcoin exposure through these is another question and you can find the answer to that in this Coin Bureau article.
- Naturally, you should take into account that all and any information sourced from Reddit is based strictly on subjective personal opinions.
Any insight that you can get on a project is good, so seek out others who are talking about it as well. Investing smaller amounts over a longer period of time will decrease risk, but not necessarily your gains. Now that you’ve taken into consideration everything a cryptocurrency has to offer and aims to achieve, you can make an educated decision on the overall sustainability of the crypto. Once you’ve determined that the crypto you’re looking dyor meaning at exists to serve a purpose, next you should figure out how the currency functions and how it will execute its purpose. If the crypto you’re looking to invest in doesn’t aim to solve a problem or serve a purpose, then you may want to move on. I’m well aware that the common misconception is to look at a project’s roadmap to determine if the NFT will be sustainable or not, but in all reality, a roadmap is nothing more than an idea.
A lack of discussion of a coin may be a red flag as most solid projects will have at least some die-hard supporters. When investing a project, assess the utility it brings to the ecosystem and see if there is truly a need for it and if it has what it takes to usurp its competitors. Ellio Trades – One of the fastest growing Crypto Youtubers out there. Ellio is an all-rounder but has a stronger focus on low-mid cap cryptocurrencies with high-risk-high-reward profiles, often making X predictions on low cap coins (which people seem to love). Over time you will undoubtedly find some favourite Twitter/Youtube personalities. While finding someone you trust and resonate with is great, know that getting all your info from one source is a sure fire way to make some bad investment decisions.
Learn about Impermanent Loss, a crucial concept in DeFi liquidity pools, and how to navigate and leverage it. First, you identify a topic, then you gather sources about that topic and investigate them, then you create a conclusion about that topic that is guided by a prompt. If you read this article, you will be better prepared the next time you hear someone yell DYOR!
When I search for Ethereum on CoinMarketCal, I get the following result. To do this, I use CoinMarketCal and search specifically for the coin I am https://www.xcritical.in/ interested in. With some experience, it will be very easy to spot which groups are legit and which are infested with fake followers and bots.
This term is still gaining popularity today as crypto adoption increases, and risks also grow. It encourages people to do in-depth investment analysis before putting in money. This messaging platform is great when it comes to updates, trends and market sentiment analysis. However, the large and established VCs all use in-house analysts who specialise in finding and vetting crypto projects.
If relying on the word of others, you are more likely to be deceived. Sure, a person might help you out by revealing his in-depth knowledge of a highly bullish altcoin but that is not the case most of the time. Instead, Bob will buy someone’s bags and end up with a project that is, in the worst case, not even being actively developed. Investors must decide which sectors they want to invest in and how heavily to invest, based on their research and where they see the most potential for growth. More advanced statistical tools, such as a relative strength index (RSI), are often used in conjunction with chart patterns. For example, a price chart showing a bull pennant combined with an RSI of under 30, indicating the asset is oversold, makes an upward move even more likely.
Below is the list of some of the best analysis practices for traders of all levels to do their research. While we have created a step-by-step process on how to go about DYOR in crypto, you can run down the list below to imagine the bigger picture of your research efforts. Always proceed cautiously when making an investment you don’t fully comprehend, and keep an eye out for further great opportunities. Flatcoins are cryptocurrencies whose value is pegged to the cost of living, rather than fiat or commodity.
In fact, IL may be a trade-off for the potential rewards that liquidity provision offers. By providing liquidity to pools, a trader contributes to the overall liquidity in the crypto market and facilitates efficient trading. This, in turn, can result in earning rewards like trading fees or additional tokens. Knowing how to research cryptocurrency will not only save you lots of money, but it will also improve your future investment decisions. In other words, being able to identify potential opportunities can increase your successful investments. One thing is for sure – aim to get in below the all-time high.
All these analysis practices when combined can help you interpret market data and give you various aspects which will guide your trading. Sign up today for Stock Advisor and get access to our exclusive report where you can get the full scoop on this company and its upside as a long-term investment. Learn more and get started today with a special new member discount. You might not understand all the content, but write down any questions you have as you go along — these will help you as you dig more. If a crypto doesn’t have a whitepaper, that’s a big red flag. Since we have reached the point of talking about analyizng prospective investments, it is time to truly lay out the importance of analysis.
Over time you will definitely find some favorite Twitter or youtube personalities. While finding someone who seems genuine and unbiased in their opinion is great, know that getting your info from one source is still going to backfire. Simple Ledger Protocol (SLP) is a token system that works on top of Bitcoin Cash. 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.
Staring at charts, looking for candle patterns, checking up indicators, and testing new trading strategies is everything that you need to do in order to succeed with technical analysis. It should offer a clear understanding of how the project works, what problem it solves, and how it creates value. The media lives off outrage and scandals, so take everything with a grain of salt and consult the experts before making up your mind. While we won’t dive into every type of info source in crypto, here are a few more places you can look at to get a more holistic picture of a crypto investment.