How to DYOR in investing

[Xembin]

What I want to add for beginner investors is to be highly skeptical when dealing with crypto. Even in traditional venture capital the risks are very high, but in crypto they're through the roof because of added risks of scams.

Dealing with crypto, rules must be abide, more research must be carrying out not to be scam. No roof for short cut because all protocol must be follow.

[AniviaBtc]

Simply look for the things that you don't understand in investments. By that, you can widen your perception towards things that will help you have a good quality of trading in the market.

It is not that hard to seek for information that you can use as a tool for learning. I'm really a fan of self-study and self-learning because it can make you independent about the things that you can use in your surroundings. Don't always rely on the things which are already in your mind, don't be contented with that, always look for more knowledge.

[friends1980]

Nice work OP.

One of the most difficult things for people on these boards is to not only read about DYOR and know that you should, but actually doing it. How many members on these boards who participate in bounty campaigns or even invest money in new projects, have actually taken the time to read the complete whitepaper? Some projects even create "one pagers", because they know most people don't even bother reading the whole WP.

So rule number one of DYOR should be to actually do your own research and not just having the intention of doing so.

Allow me to add a link to your thread, to a post I made over 2 years ago - a short DYOR checklist - which is however still as relevant today: https://bitcointalk.org/index.php?topic=4388247.

Feel free to add your comments. I don't tend to bump my posts, but I'm sure it can be helpful to others in the future, too.

[libert19]

Simple whales are done profiting on them. So whats the point of leaving their shares for too long? Most traders have this kind of strategy. They will play along until they lured others and when the price is at its peak they will dump their tokens and find new gems.

Exactly, and this is why I don't agree with the "Marketcap" point mentioned in OP. You shouldn't build your investment plan based on the coin's marketcap.
Investing in coins with low marketcap doesn't guarantee a profit simply because such coins can be easily manipulated by whales.
If you are a small investor then most probably you will end up losing your money.

Nothing guarantees anything, op probably meant the huge profits are to be made with low caps. If you get lucky somehow, you can get in these low cap 'gems' before whales enter and boom.

[AakZaki]

-snip-

Can't agree more. For me, TA is one way of analysis that I think is effective. As I have mentioned in my previous comments.

PS : I am TA lovers (tend to be TA hardcore).

However, imo, wouldn't it be better if we (at least) understood the fundamental and sentiment causes of price movements. Like forex traders usually did. They always check forex factory, in case there's a news that cause price move sharply or strengthen previous trend.

you're right about the fundamentals. At least we must also understand the fundamental causes and sentiment of price movements. Fundamentals are signals of the start of a coin pump and dump. If you only rely on TA, it will not be balanced and less accurate.

back again  OP's discussion about DYOR i investing. All the points mentioned are interrelated and equally important. Stay on how to do correct and accurate research. Investments will be very profitable if you do research well and get a successful project in the market.

[cryptoperkele]

Well i guess i was wrong with the sol. Marketcap just mooned and price even moved forward. I didn't count the effect of the altcoin season.

[tyz]

You forgot a few essential things: the whitepaper, the source code and the new technical developments the project offers. The whitepaper and source code should be the main factors to check before you do an investment into crypto. If you not familiar with the technical background and if you can not read source code then look for competent opinions from people in the community who can.

[cryptoperkele]

You forgot a few essential things: the whitepaper, the source code and the new technical developments the project offers. The whitepaper and source code should be the main factors to check before you do an investment into crypto. If you not familiar with the technical background and if you can not read source code then look for competent opinions from people in the community who can.

Literally amongst the first things i mentioned was "Read the project white paper".

But i agree with the source code thing, and opinion of an expert about it would be valuable. I thought i had included that in the section about the project itself or "competition". So that's a good point.

I'll update that later and give you credits for noticing that.

[libert19]

If they give any discounts to any group of investors (early etc) that's always a red flag

I wouldn't consider it a red flag but if it's hefty discount like get double or something like that then it is a red flag, almost all projects give some discount to early buyers these days, imo 5-10% is ok.

[dansus021]

I've spent time in the past researching altcoins and trying to find what I thought was opportunities in vain. I get it we can make 10x- 100x and make millions by finding projects that won't dump their coins on exchanges the moment they get listed. Still, what have these new projects to offer? 99,9% of them nothing.

I'm serious less than 1 out of 100 projects have something to offer. We have 10,000 currently and only 20-30 of them will be relevant. Most projects do not have anything besides an ERC20 token and a few lines of Solidity code.

Basically, I'm treating altcoins as a way to add to my Bitcoin position and I'm not feeling well holding too many of them. I don't see them as having long-term value and certainly I didn't gamble with any DeFi. I bought some alts during April, bought some more during June, and sold a few weeks ago. I felt glad to increase my Bitcoin position but probably I'm not going to go bellow 90% BTC again and felt it was unnecessary risk.

Anyway, the post describes most of the essentials when doing research. In case of a fraudulent project, a red flag will probably appear after taking these steps.

100 percent agree with your sayin, actually theres dozen scam project that almost everyday pop up from airdrop and sorta inversting shi* and yeah most of it on ERC 20 other token. They usually say this project actually have impact to real life or somethin like that. Dont invest to people who DM you and share screenshot their Success from "A" company