Navigating the vast and dynamic world of cryptocurrencies can be overwhelming, especially when bombarded with token recommendations without a clear roadmap for research. It's akin to attending a cooking class where the chef excitedly hands you ingredients, screams "DYOC" (Do Your Own Cooking), and then mysteriously vanishes, leaving you with a pile of ingredients and a perplexed look. In this blog post, we'll demystify the process of Do Your Own Research (DYOR) with a step-by-step guide, ensuring you're well-equipped to uncover hidden gems in the crypto space.
Step 1: Find 1 or 2 Niches and Focus on Them
Like a seasoned chef mastering specific cuisines, focusing on one or two niches in the crypto space allows for a deeper understanding. Attempting to explore projects across multiple niches can be chaotic and may lead to missed opportunities. Choose your niches wisely and commit to becoming an expert in those areas.
Step 2: Connect with Niche Experts on Twitter and Absorb Their Knowledge
Learning from the best is key to becoming an expert. Twitter is a goldmine for crypto insights. Identify and follow niche experts, absorb the research they share, and compile a list of projects capturing their attention. This curated list becomes your starting point for deeper investigation.
Step 3: Activity and Sentiment Test
Engage with the project's community on Discord and Twitter. Is the team actively participating? Is the community vibrant and willing to assist with questions? Positive engagement indicates a healthy project. If the vibe is lacking, it might be time to move on to the next project on your list.
Step 4: Understanding Circulating Supply vs Max Supply
Dive into the details of the project's tokenomics. Examine the circulating supply in relation to the maximum supply. This information is readily available on platforms like CoinGecko or CoinMarketCap. If a significant portion of tokens is yet to circulate, investigate where they are held. Typically, this information is available in the project's whitepaper. If you're having difficulty, reach out to the community on their Discord for assistance.
Be wary of vested tokens and find out when they will be unlocked to avoid potential market floods.
Step 5: Check the Price
A recent surge in price, coupled with euphoria in Discord, might not be the ideal entry point. Patience is key. Wait for a price pullback before considering an investment. Emotional buying during peaks can lead to regret when the market corrects.
Step 6: Scan the Smart Contract
Prioritize the security of your investments. Utilize tools like De.Fi/scanner to scrutinize a project's smart contract. By copying and pasting the contract address, you can identify potential risks and vulnerabilities. This step adds an extra layer of assurance to your investment strategy.
Bonus Tip: Prioritize Security
Given the risks in the crypto space, exercise caution. Before linking your wallet to any website, ensure it aligns with the official links provided in the project's Discord and on reliable platforms like CoinGecko.
Conclusion:
Armed with these step-by-step instructions, you're better equipped to navigate the crypto space and conduct thorough research. DYOR is not just a mantra; it's a strategic approach to identifying hidden gems and making informed investment decisions. Remember, patience, diligence, and a keen eye for details will be your greatest allies in the exciting journey of crypto exploration.