What does DYOR mean?
Abbreviation for DYOR “Do your own research.”
This phrase is commonly used among analysts, investors, and cryptocurrency enthusiasts. It is often combined with an abbreviation. NFA (Not financial advice) Together, they serve as reminders: You are responsible for your financial decisions.
Why is DYOR important?
In the volatile cryptocurrency market, DYOR serves two main purposes:
- promoting personal responsibility
Relying on random advice can result in losses. DYOR promotes independent thinking and informed decisions. - Provide legal protection
In some countries, investment advice without a disclaimer may result in lawsuits. for example:- If someone gives you financial advice that causes you to lose money, you may be subject to legal action.
- Informal advice (e.g. social media) can also give rise to liability.
Phrases like DYOR and NFA help you connect with the creator. influential people Don’t be mistaken for a licensed advisor. These terms and conditions clearly state that the content does not constitute formal financial advice.
How to DYOR effectively
Doing your own research may seem difficult, but a structured approach makes it easier. Here’s how:
1. Goal setting
Define what you want to learn. Are you valuing coins? fraudOr do you decide to invest?
Examples of goals:
- Detect fraudulent projects.
- Understand token utility.
- Assess project sustainability.
2. Collection of relevant data
Depending on your goals, you can collect data through traditional or blockchain-specific methods.
- a) Traditional finance (TradFi)
Regulated industries provide detailed and reliable data. Main sources include:
- Financial statements (e.g. balance sheet)
- Ownership records.
- Regulatory filings.
- Risk assessment.
TradFi research tools:
- OpenCorporates: A database containing over 220 million company records.
- b) Web3 and blockchain tools
Cryptocurrency and blockchain projects emphasize transparency. Use tools like Block Explorer to find real-time data.
Popular blockchain tools:
|
equipment |
characteristic |
Use cases |
|
Etherscan |
Wallet data, gas fee, token information |
Ethereum network analysis |
|
affectionately |
Transaction Details, Simulation |
Debugging and advanced analytics |
|
falcon |
Transaction Tracking, Unique Users |
Security and on-chain data |
3. Data filtering
Focus on the data that supports your goals. Avoid extraneous information that distracts from your analysis.
Useful Metrics for Research
Depending on the topic, different metrics are important. Data commonly analyzed includes:
- market capitalization: The overall value of cryptocurrency.
- trading volume: Activity level over time.
- supply limit: Maximum token supply.
- utilization rate: How the token is used in the application.
- interest rate: For staking or Lending Protocol.
tip: Always compare market capitalization to fully diluted valuation (FDV). FDV can provide deeper insights.
Always DYOR
DYOR is more than just a phrase. This is a philosophy for smart investment. By doing research, you can:
- Take control of your financial decisions.
- Avoid becoming a victim of fraud.
- Reduce reliance on influencers or biased opinions.
cryptocurrency It’s unpredictable. Always check for reliable information. While DYOR is important, consulting with a financial expert can also be helpful. Stay informed and safe in the dynamic world of cryptocurrency.