How to Do Your Own Research (DYOR) Into Cryptocurrency

Do Your Own Research

The crypto market is infiltrated with volatile behaviour, scammers and fraudsters. This is why, in the cryptocurrency sector, the advice given to traders is “Do your own research” or DYOR for short. With crypto trading, there are many risks involved, almost changing on a daily basis, so it really is up to individual traders to familiarise themselves with the risks involved. There are, sadly, many people on the internet who are happy to exploit traders who are ill-prepared. 

It’s important to learn more than just the basics when it comes to trading, which is where DYOR comes in. This phrase was coined not just in relation to cryptocurrency trading, but general use across the internet due to the speed in which misinformation can spread. DYOR aims to reduce the impact that uninformed traders and investors have on the wider community. 

Instead, DYOR encourages investors to research and understand more about cryptocurrency before investing. This is so that they can precisely pinpoint why they want to buy a certain currency and what benefits it brings. DYOR is often used as a disclaimer when crypto enthusiasts and traders post publicly online or share their analysis on social media. 

It’s important for crypto enthusiasts and traders to understand more about protecting themselves and their trades using DYOR. Let’s take a look at how you can do your own research (DYOR) for cryptocurrency trades. 

Why is It Important to Do Your Own Research?

Shilling is a practice in cryptocurrency where traders or investors will advertise coins and currencies in the hope that this will inflate the price. Often, it’s hard to distinguish between a shill or an unbiased post. As a trader, when you purchase cryptocurrency, it is best advised that you make a decision on your own, after making your mind up and doing your own research. 

Sybil attacks are popular on forums and social media platforms. This is where people with malicious intentions will create multiple fake accounts in an attempt to trick investors into purchasing cryptocurrency or coins. This hype will be based on fake and inflated social media posts, but it’s not always easy to spot fake accounts, which is why it’s important to be slightly sceptical and carry out your own research. 

What to Look for When Researching Cryptocurrency

Whilst doing your own research might seem intimidating, remember that it doesn’t need to be! When you are prospecting for investments, you can tailor and focus your research on numerous different facets. The main reason for DYOR is so that you can practice making responsible trading decisions using disciplined thinking and reducing the risk to you as a trader. 

Research vs Risk 

DYOR means that you can mitigate risks involved with irrational decision-making when it comes to making investments in crypto. There are some areas where research can help you to avoid making a bad investment. One example is market sentiment, which can cause traders to invest in an asset though sheer FOMO (fear of missing out).

When the market is on the up, some investors will find themselves caught up in the hype and will then buy through fear of missing out on a potential opportunity. With DYOR, investors are then more likely to incur financial losses as a result of buying their assets at such elevated rates 

If there is FUD (fear, uncertainty or doubt), then investors will, in most cases, panic-sell their assets. Without proper research, investors will be more likely to sell their assets at a financial loss as a result of being influenced by market sentiment. 

Website and Whitepapers

Your research should start with making yourself familiar with important details about coins or crypto projects you are looking to invest in. There is no better place to look for information than whitepapers on a website. In cryptocurrency, whitepapers are comprehensive documents that detail and outline specifications and intricacies of currencies. It includes vital information and can explain how it functions. 

It’s important to note that often, whitepapers can delve into further technicalities and details which can be beyond some investor’s knowledge. Even so, it’s important to read through when you can, or look for a concise explanation or summary. 

When looking at a website and its corresponding whitepaper, be sure to look out for signs of unprofessionalism. This could be numerous grammatical or spelling errors. You should also consider the extent to which the details are explained. 

Find Reputable Persons to Follow

A lot of crypto information on social media and on other mainstream websites is done simply in order to compete for attention with others. If you are relying on channels such as these for crypto context or additional commentary and information.

Research on these channels can often be helpful and even more so than the project itself. Once you find a person whom you can trust to offer advice and tips on certain projects and topics, then this source of information can be invaluable to your trading and investment tactics. 


The crypto industry can be hugely volatile. This is why it’s so important to remember that no amount of research you do will ever protect you fully. In order to mitigate risk made through trading, investors can protect themselves with the knowledge of projects in which they want to invest. There is so much to learn within the crypto industry and the more you look to improve and expand your knowledge, the more considered trades you will make.

It’s important to understand that scammers are everywhere within the Crypto industry. If you do fall victim to a trading or investment scam, this is nothing to be ashamed of. Many traders fall victim to scams each and every day, but this is where learning more and DYOR will help keep you protected in the future. If you do fall victim to an online trading scam, then be reassured that there are now many investment fraud attorneys who can work to recover your lost funds.