DYOR

DYOR

Ever heard of the word DYOR as used by crypto enthusiasts? This simply means, Do Your Own Research.

The most important thing you can do as a crypto investor is to educate yourself. Cryptocurrencies have earned a bad reputation for scams, and this trend will continue until people put in the time to research each project thoroughly.

Before you invest, be sure that you will always conduct thorough research and seek professional advice if necessary. Never invest more than you can afford to lose, and never rely on just one source of information when making your decision. If you are unsure of the nature of any investment or if your circumstances make it difficult to manage your finances, please speak to a financial advisor or one very informed about the Crypto space.


There are 4 basics things I look out for in every project before I venture into them. It is my opinion that utility, community, market capitalization, and security are the four main pillars of crypto value.

1. Utility

Every project should have a use case or what it intends to solve in the crypto space. The utility of a cryptocurrency is the reason that people use it. Cryptocurrencies with a higher utility have more value than those with lower utility. Those that are easier to use are considered to be of a higher utility and thus their price tends to rise.


2. Community

The community behind a cryptocurrency can provide support for it when there is negative news or an exchange attack. Hence, cryptocurrencies with a strong community tend to be more secure and have greater chances of recovery in case of any attacks. It is always very important for the community to stand strong with the project.


3. Market Capitalization

The total dollar market value of all the coins in circulation. This is a change of how much money you would have if you were to sell your particular amount of coins. These numbers are useful to determine the effect of news events on the price of a cryptocurrency.


4. Security

A crypto currency's security is equivalent to the risk that any investment carries. That is, there's always a risk when you invest, so you need to look at each cryptocurrency and assess the risk for yourself before investing.


You can always conduct this research through or by visiting CoinGecko, Coinmarketcap, twitter, Facebook, google search, telegram, discord etc.

Possessing these attributes of great quality does not mean the project will not be prone to attacks but it stands a better chance of getting back on track when the inevitable happens.

If you're always getting updates from websites or crypto analysts, be mindful that most websites or analyses are intended as a source of information only, not financial advice. Information provided on that site may become quickly outdated. And the accuracy of such information is not always full proof owing to the unpredictability and volatility of cryptocurrency. This is why it is also important to look at the liquidity pool of a project. Liquidity represents the ability of a currency to be bought and sold easily without affecting its price.

I can always tell you the projects I think are solid but that would be on request. You can always ask me for advice although it will not qualify as financial advise.

Ezra Dung

Assistant Manager Internal Audit @ Society for Family Health Nigeria |CFAN |ACA |MSc |BSc |AAT|

2 年

Nice

Anthony Onwukwe

Venture Building | Finance| Growing KeekStat Education.

2 年

Very insightful

要查看或添加评论,请登录

Anthonymark Ngwu的更多文章

社区洞察