The Meaning of Dyor in the Crypto World You Should Know

DYOR is a term that is often referred to in the crypto world. As an investor, it is very important to understand and implement DYOR. 

DYOR was implemented to reduce the number of investors who do not have a deep understanding of the ins and outs of cryptocurrencies. Thus, the definition of DYOR is a call to encourage investors to constantly research and gain insight before deciding to invest in any crypto asset. 

The term first became popular when Initial Coin Offerings or ICO projects started flooding the crypto space in 2016 and 2018. At that time, many casual investors were willing to spend a lot of money to invest in crypto assets.

Unfortunately, this investment has been neglected by extensive understanding and research. With this phenomenon in mind, some crypto activists are urging potential investors to DYOR before entering the crypto investment world. To better understand this term, let's look at the other explanations in this article.

Meaning of DYOR

DYOR stands for Do Your Own Research. DYOR challenges investors to gather as much information as possible before deciding to invest in any crypto world.

DYOR will help someone find the right reasons to invest so that it can be used as additional motivation to achieve these goals.

This is very different when an investor invests without a broad understanding and clear goals. By doing so, an investor can answer the exact reasons why they are willing to invest in a particular crypto asset. In addition, this approach also helps investors achieve the highest returns. 

Application in the Crypto World

There are several ways to implement DYOR into crypto investments. One effort that should not be forgotten is identifying potential investments.

In practice, you should make a list of projects that you want. Then look at each project on their official site for reference from other users.

This way you can understand how big the opportunity is in the future. Identification of investment potential can be done in two ways, including the following:

Technical Analysis

Technical analysis can be an alternative to do DYOR. Indicators for implementing technical analysis are monitoring market price chart fluctuations, looking for candlestick patterns and testing new trading strategies.

By using technical analysis techniques, you can better understand market sentiment and predict important market trends. This analysis can be used to make more accurate forecasts and smarter investment strategies.

Technical analysis takes into account the historical movement of the crypto asset with charts of price and trading volume, as well as what the token has done. On the other hand, standard analysis focuses more on determining whether a coin's value or value is higher, fair, or low.

Trendlines, or the typical direction of a token's price movement, can be of great use to traders or investors cryptocurrencies. However, using this method is easier said than done.

The price movement of each crypto can be very fast. You can observe a price movement chart so you can see the highs and lows that form a linear pattern.

With this in mind, technical analysts can ignore orders and find that the trend is up. Conversely, you can identify a downtrend when looking at a series of sell-off prices.

Also, there is a sideways trend and in this case the crypto doesn't move much in either direction. You need to know that trends come in different periods, including medium, long-term and short-term trend lines.

Apart from trend lines, there are also horizontal lines which show support and resistance levels. By identifying these levels, you can draw conclusions about the supply and demand for tokens.

At the support level, it seems that many investors or traders are ready to buy the currency (high demand). Investors think that the currency is undervalued at current levels and are therefore trying to buy it.

When the token approaches this level, a buy situation occurs. Lots of demand usually stops the decline, and sometimes the momentum itself can become an uptrend.

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Fundamental Analysis

Fundamental analysis is a valuation strategy used to determine the market value of an asset. This technique is usually done by evaluating business practices, plans, developments, white papers, network activities, marketing strategies, teams, tokenomics, and more.

Looking at many internal and external factors, the main objective is to determine whether an asset as a company is overvalued or undervalued. Investors can use this information strategically to enter or exit investment positions.

As mentioned above, assets crypto cannot be viewed through the same lens as traditional assets. Fundamental analysis of stocks and cryptocurrencies is different.

There are many factors in the crypto asset market that can be used as a fundamental analysis of crypto assets. Even with more decentralized mainstream tokens like Bitcoin (BTC), it is closer to a commodity. So it is necessary to distract us in other ways.

Also read: How to Get Free Bitcoins on Indodax

The subject research process is to find out in advance what cryptoassets we will buy through the website. Not only that, the relevant research process also means finding information about the pros and cons of investing in crypto and blockchain technology.