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DYOR: Why It's The Most Important Part Of Crypto Investing by@valuefirst
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DYOR: Why It's The Most Important Part Of Crypto Investing

by ValueFirstJuly 25th, 2022
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Perceptions and Emotions affect the valuation of Projects. Fear can translate to loss of value and overconfidence can mean overvalued. Technical and Fundamental Analysis are no longer sufficient for DYOR. Community Research is the future of DYOR

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Perceptions and Emotions affect the valuation of Projects. Fear can translate to loss of value and overconfidence can mean overvalued. Technical and Fundamental Analysis are no longer sufficient for DYOR.


Collecting and aggregating the perceptions and emotional interpretations of the fundamentals of a project from a widespread and varied community of investors and users is the next invaluable addition to DYOR.


Everything that can go wrong in investments is present in crypto at a heightened level and can happen at mega-speeds that no other financial sector can achieve. Crypto is volatile and unregulated, hackers, scammers, and Rug-pullers filled. Not doing DYOR is the biggest risk you can take in investing in crypto.

What is DYOR

DYOR — by valuefirst


DYOR is the acronym for Do Your Own Research. According to - DYOR means to conduct due diligence and gather the necessary market intelligence in order to make sound investment decisions. Much like establishing the integrity and viability of a company, product, and service in traditional finance research, in this case, projects, protocols, coins, tokens, services, etc.

DYOR Is A Caveat Emptor-Buyer Beware in Crypto

DYOR is a very popular term in crypto and blockchain communities and it is pushed primarily to protect investors in the cryptocurrency sector. It is believed that by pushing DYOR more investors will do their research, avoid bad actors, improve crypto credibility and increase crypto adoption. DYOR gain prominence in crypto between the period 2016–2018.


What you will not find is a community researched fundamentals of a project, coin, token, etc.

How To DYOR

Broadly speaking DYOR is much like traditional financial research and in this regard, you can do either, or both Technical and/or Fundamental research on the projects you are interested in.


Technicals vs Fundamentals Parameters — by Valuefirst


Technical Analysis Approach

According to the Corporate Finance Institute, is a tool, or method, used to predict the probable future price movement of a security, based on market data. According to — Technical analysis is a sophisticated process of analyzing the historical and current price and volume data of assets to predict their short-term price action.

Fundamental Analysis Approach

is a method of assessing the intrinsic value of a security by analyzing various macroeconomic and microeconomic factors. Intrinsic valuation looks at the value of a business on its own and not in comparison to others.


puts it like this, Fundamental analysis is about finding crypto assets that have long-term potential, all you need is some business and common sense.


investors will need to consider, measure and gauge the general feelings and emotions of other investors (community) to make a sound investment decision.

Where to Find The Information You Need to DYOR

All the data and information you need to DYOR you will generally find on the websites, exchange platforms, Github, etc, they may be scattered and require some work to gather and organize, before analysis, but generally, you will find the data and information you need. Not finding them in itself is a red flag.


What you will not find is a community researched fundamentals of a project, coin, token, etc. Even though it is clear that it impacts valuation and pricing. In other words, what the collective investors (community) think about a project affects its valuation.

Proof of Community Impact: The Correlation between Community Emotions and Market Actions

According to , behavioral economics believes that all price movements regardless of the market are influenced by the psychology of traders. Thus, emotions become the main driving force. Combined personal feelings and expectations create market sentiment. This certainly appears to be true in the case of cryptocurrency.


According to , A study quantifying the emotional factors in over 2 million posts on found that emotional factors significantly correlate with Bitcoin’s trading volume and return volatility. It also found that “emotions affect the total return variation process of investors, and thus may influence the financial market by inducing extraordinary price movements.”


Applying this to DYOR means that investors will need to consider, measure and gauge the general feelings and emotions of other investors(community) to make a sound investment decision.

Where To Find Community Research Fundamentals

The short answer is ‘Nowhere’. Existing sources of information for DYOR do not collect this kind of community research for users’ use in DYOR, although you certainly can find disparate opinions about any project of your interest on the internet, you will have to do the tedious work of manually gathering them.


Luckily several DYOR sources are beginning to look in this direction, leading this approach are start-ups like who are presently testing their community research approach.

All-In-One DYOR Source

The ultimate source for DYOR is one that provides users and investors with Technical data, Fundamental information and captures the investors’ and users’ community perceptions, opinions, and emotions. Doing DYOR on several of these kinds of websites is the Uhuru of Crypto DYOR and the beginning of the end of Crypto Scammers and Rug-pulls.


This directly impacts the future of Crypto Adoption


Disclaimer

The opinions shared within this article are solely those of the authors. Note that the content within should not be considered financial, legal, or tax advice. Neither the author nor Kryptview is a financial, legal, or tax advisor. Do your own research and consult professionals as needed for official policies, restrictions, and requirements in your jurisdiction


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