What is DYOR?
Most crypto advice posts or videos end with a “DYOR” from the poster. No, not the luxury fashion brand. So what does DYOR mean, anyway? Read on to find out the meaning of DYOR in crypto slang!
What Does DYOR Mean?
“DYOR” is short for “Do Your Own Research”. While it’s a very common slang term found in the crypto community, this phrase has many applications. In the Internet age where misinformation and hoaxes can spread lightning-fast, doing your own research is important to avoid making bad decisions.
DYOR In The Cryptocurrency Community
Among cryptocurrency enthusiasts, the phrase DYOR is typically used as a disclaimer when somebody states an opinion as well as encouraging the reader to form their own opinions. So someone saying “This token has potential, but DYOR” means that the person thinks the token is good, but people shouldn’t take their word for it.
What Do I Need To Research?
So you’re about to DYOR on this new cryptocurrency coin that you’ve heard good things about. But what research is it that you need to do? Here are some important key research points for digital currency:
Almost all cryptocurrency is created to solve a certain problem other than supporting their own value. For example, the currency Stellar (XLM) is created to connect banks and investment firms, making large-scale transactions easier.
It’s not enough to know what problems the coin is trying to solve – you also need to know how it does so. Most legitimate cryptocurrencies and blockchain projects provide a whitepaper or a document detailing its objectives and the ways it wants to achieve them.
Most legitimate coins would have names attached to them. This proves that the coin’s creators are at least willing to have their name attached to the currency if something ends up going wrong. If a coin has anonymous creators and it turns out to be a scam, there’s likely nobody there to take responsibility.
Another key criterion is the coin’s sustainability. Most great coins aren’t just created to make money – they’re here to solve a problem. If you’re looking for a good coin to hold for the long run, find one with a clear mission that can hold people’s interest for years to come.
Benefits Of DYOR
So you’ve decided to DYOR for every crypto purchase from now on. But how would that affect you? Here are the benefits of doing your own research.
Separate Shilling From Actual Advice
Shilling a cryptocurrency means advertising the coins you have in hopes lots of people would buy them, triggering a price increase. The problem is that it’s sometimes hard to tell which crypto Twitter posts are shills and which ones are legitimate, unbiased crypto advice. DYOR helps you make an investment decision based on your own research, not just because somebody told you to buy it.
Prevent FUD & FOMO
FUD (fear, uncertainty, and doubt) and FOMO (fear of missing out) can result in bad trading decisions. Instead of aping into every coin that people say is good, DYOR helps temper your excitement so you don’t go ape on everything listed on the crypto market. Researching helps you build an investment strategy, so you don’t end up making a rash purchase decision down the line.
Avoiding Costly Mistakes In Crypto
Like any investment alternative, cryptocurrencies have risks. With the ever-shifting and fast-paced nature of the cryptocurrency space, you can get rich quickly, but you can also lose money in a flash thanks to bad cryptocurrency investment. To prevent costly mistakes when investing in crypto, you should do these three things:
Don’t Invest More Than You Can Afford
This first tip is self-explanatory. Even if you’re facing a bull market and all the coins are rising in price, never ape into a coin with all your money. Sure, you’ve heard of people getting hundreds of thousands of dollars and becoming crypto millionaires overnight, but it’s not guaranteed. Know your limits and only put in as much as you’re willing to lose.
Secure Your Cryptocurrency
Security is always a top concern when it comes to investments, and crypto is no exception. While most reputable crypto exchanges take measures to protect your coins, you may need to take some extra measures like:
- Avoid suspicious public WiFi hotspots.
- Use two-factor authentication on your exchange apps.
- Use strong passwords on each app and never use the same password twice.
Diversify Your Investments
As the saying goes, you can’t put all your eggs in one basket. Crypto is notoriously volatile, so we recommend that you spread your money around by investing in things like the stock market, foreign fiat currency, and real estate. This way, if one investment vehicle crashes, you don’t lose all your money.
The crypto world can be confusing, and it’s easy to just buy coins that others buy. However, trend following isn’t always a good idea. To avoid taking too many risks and potentially losing money, you should always DYOR before buying any currency.
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