Do Your Own Research – DYOR

The most important skill in crypto

The art of DYOR isn’t just about collecting facts. It’s a holistic approach to understanding the crypto world and making informed decisions without being unduly influenced. Most individuals often find research daunting or rely heavily on influencers. But with a robust framework, the process can be straightforward.

A Comprehensive Framework

Before investing in any cryptocurrency project, you need to understand its core principles. For instance, to grasp the potential of Starknet, you must know about ZK-Rollups. Visualise it like skill trees in your favourite RPG game. The following are some examples depending on your level of knowledge and some fundamental concepts:

  • Novice: Topics such as Crypto Security, How Bitcoin works, Hot vs. Cold wallets, and Understanding Yield farms are fundamental.
  • Intermediate: Dive into DEX vs CEX, Basic Tokenomics, Understanding major Layer 1s, and Impermanent Loss vs Slippage vs Staking.
  • Expert: Delve into MEV, Options, Advanced tokenomics, Governance Proposals, and the distinctions between L2 Roll-Ups.

But this is just a reference. To be able to DYOR, you need to grasp the essence:

Profit Skills: Knowing technical details doesn’t necessarily lead to profitability. Profitability requires a unique skill set. Skills in this category include Decision Making, Trading Psychology, Portfolio Construction, and Risk Management Strategies. The key takeaway? Just as poker players need a strategic edge, crypto enthusiasts must cultivate a knack for maximising profits.

Crypto-Specific Skills: These are tailored to the unique dynamics of the crypto industry. They offer an advantage when well-honed. For example, what is the metagame or the new narrative? How can you discover new protocols that have potential? Are you good at whale wallet hunting or a master of reading on-chain analytics to follow movements? As far as I know, nobody can do all these together, so write down your plan and stick to it.

Use the Right Tools: The right tools offer leverage. Tools can save time and offer insights. Watch whale movements using features like Nansen’s Smart Money or create your own list on platforms like Zapper.

Outside Crypto: Don’t get too deep though before you broaden your horizons in real life. You might already be there, but advantages like having a broad understanding of multiple technical subjects or subjects that cryptocurrencies relate to can provide an added advantage. So, while you may focus on DeFi, keep tabs on broader trends and innovations in parallel sectors.

Diving Deep into Protocols

When the buzz around a particular coin or protocol intensifies, it’s easy to get caught in. So it’s vital to investigate thoroughly before jumping on the next hype train.

  • Start with the source: Before turning to YouTube or X threads, familiarise yourself with a protocol’s white paper, medium articles, and GitHub repositories.
  • Evaluation framework: Consider the strategy, execution, people involved, cash flow, and tokenomics when analysing a protocol. Questions like: 

                        ‘’How is it different from competitors?’’

                        ‘’Has the team been meeting its milestones?’’, and 

                        ‘’How is the token’s value accrued?’’ can guide your research.

In essence, DYOR is not just about ticking off a checklist. It’s about understanding the current landscape, weighing risks, and making informed decisions. With a structured approach and a keen eye for details, you can navigate the crypto market more confidently.

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