DYOR is the most powerful skill you can have in the crypto industry. Doing your own research will require you to spend time and effort learning about the crypto project, and will ultimately provide a foundation for your investments.
Just be sure to use reliable sources when doing your research. Project’s official website, whitepaper, and established sites such as CoinMarketCap and CoinGecko are great sources of information.
Here are 7 key elements when doing your own research:
- Whitepaper
- Tokenomics
- Utility
- Team
- Community
- Competition
- Roadmap
Whitepaper
The whitepaper should be your starting point when discovering a new coin. The whitepaper is an informational document published by the creators of the project. In it, you should find all the necessary information that explains why it is created, what’s the purpose and how the technicalities work.
Tokenomics
The next thing to consider is the most important details about the coin itself. What is the total supply, how is it distributed and what is the current circulating supply. That will tell you what can you expect from the supply and demand perspective.
Utility
In my opinion, utility is the most important element to research on this list. For a project to be adopted in our society, we need to have a use case for it. The utility is many times underrated when it comes to investing. Memecoins are often an example of crypto projects that exploded in price with no real utility. Eventually, many people are left disappointed.
Team
Behind every project, there is a team developing it. What you want to find out is how experienced the team is and how dedicated are they to bringing that project to life. Official websites and Twitter accounts can be a good resource to find information about the team behind the crypto project.
Community
Crypto has a quite strong community. There are many crypto enthusiasts and engaged users that are willing to get involved with their favorite project. You should check how developed is the community of the project you are researching. You can do so by checking their social media and seeing the number of followers and engaged users. It would be wise also to join some of their communication channels and get involved with the community directly.
Competition
Competition in crypto is becoming fierce. When Ethereum launched in 2015. it was the only blockchain network of that kind. Nowadays, there are plenty of similar blockchains that are often called “Ethereum killers”. Be sure to check the competition and market share of the project.
Roadmap
A roadmap is ultimately a strategic plan of project development. It is a vision of founders that usually involves a timeline with goals to be achieved. Roadmaps can be quite useful to see the direction the project is heading, but be aware that the crypto industry is evolving quite rapidly and roadmaps have to adapt to it so they often change.
Conclusion
No matter which project you are looking for, those 7 elements should be on your priority list when doing your own research. If you like the project after checking those elements then you just need to find the right price for it. Dollar-cost averaging is one of the best techniques out there when investing, and buying the dip is the holy grail of investing in cryptocurrencies. Just remember, before investing in a project, always DYOR.