What is DYOR?
DYOR stands for Do Your Own Research, a core principle in crypto trading and investing. It empowers you to make informed, independent decisions instead of relying on hype, influencers, or social media.
Whether you’re a beginner or a seasoned trader, DYOR is how you protect your capital and build conviction in your investment strategies.
Why DYOR is Essential (Especially in Crypto)
| Reason | Why It Matters in Crypto |
|---|---|
| High Volatility | Crypto prices swing dramatically, bad info can cost you big. |
| Scams & Rugpulls | New projects pop up daily, many are traps. |
| Misinformation Everywhere | TikTok, YouTube, X (Twitter). not all advice is good advice. |
| Freedom Comes with Risk | In decentralized finance (DeFi), you are your own bank, with no one to bail you out. Therefore Do Your Own Research. |
Beginner’s Step-by-Step DYOR Framework
Let’s break it down into 6 beginner-friendly steps you can start using today :
1. Understand the Project’s Purpose
Ask these questions:
- What problem is it solving?
- Does the project need blockchain or is it just riding the trend?
- Is there a whitepaper? (Read it! It’s the blueprint.)
Example: Ethereum was built to allow smart contracts. Clear purpose, real demand.
2. Analyze Tokenomics
Key things to look at:
- Total Supply vs Circulating Supply
- Token Utility: What is the token used for?
- Vesting Schedules: Are insiders dumping?
- Inflation: Will your holdings lose value over time?
A deeper edive into each of these Tokenomics elements will be covered in future chapters.
3. Check the Team & Partnerships
- Are the founders doxxed? (publicly known)
- Do they have a proven track record?
- Are they backed by trusted VCs or influencers?
- Have any reputable projects partnered with them?
4. Community & Social Presence
Strong communities often lead to strong adoption:
- Check Telegram, Discord, X (Twitter)
- Is engagement organic or full of bots?
- Are devs responsive and transparent?
Red flag: A quiet community = project may be dead.
5. Use Data & Research Tools
| Tool | Use Case |
|---|---|
| TradingView 📈 | Charting & technical analysis |
| [CoinGecko / CoinMarketCap] | Market data, tokenomics, price tracking |
| [Dune Analytics] | On-chain analytics |
| [DeFiLlama] | Total Value Locked (TVL), DeFi health |
| [Etherscan / BscScan] | Verify wallet activity and contracts |
| vipindicators.com 🔥 | Pro trading indicators for smarter entries |
6. Security: Protect Yourself
- Don’t click suspicious links simply because scams are everywhere.
- Store your crypto safely in a hardwallet.
- Be careful of impersonators, fake airdrops, or “guaranteed profits”.
Your Tokenomics Guide
Key things to look at:
- Total Supply vs Circulating Supply
| Concept | Meaning | How to Decide |
|---|---|---|
| Total Supply | Max number of tokens that will ever exist. | A huge total supply could lead to lower price per token (less scarcity). |
| Circulating Supply | How many tokens are currently in the market. | If circulating is low vs total, expect future dilution when more tokens unlock. |
💡 Actionable Tip!
If only 10% is circulating, and rest will be released later, expect selling pressure (price dip risk). Look for coins where most of the supply is already circulating.
- Token Utility Ask yourself:
- Is the token necessary for the platform to work?Can users stake, burn, vote, or earn rewards with it?Is it just a governance token or does it have real demand?
🚫 Avoid if it’s just hype with no use case or is used only to reward insiders. - Vesting Schedules: Are insiders dumping? Vesting = Unlocking of tokens over time for:
- Team Investors Advisors
Look for:- Long lockups (2-4 years)
- Gradual unlocks
- Transparent schedules
- Inflation: Will your holdings lose value over time?
Tokens like DOGE, SOL, etc., often have ongoing issuance (inflation). This dilutes your holdings if demand doesn’t keep up.
| Token Type | Inflation Risk |
|---|---|
| Hard-capped (e.g. BTC) | 🔒 Low |
| Emission-based (e.g. many DeFi tokens) | 🚨 High |
Pro Tip 💡
Check the annual inflation rate. If it’s >10% and demand is weak, it’s a bad bet long-term unless there’s strong staking or burning to offset it.
Use tools like:
- CoinMarketCap: https://coinmarketcap.com
- Token Unlocks: https://token.unlocks.app
Putting It All Together (Quick Example Decision Matrix)
| Project | Circulating Supply | Utility Strength | Insider Unlocks Soon? | Inflation Risk | Verdict |
|---|---|---|---|---|---|
| Token A | 90% | Strong Utility | No | Low | Consider Buying |
| Token B | 20% | Weak Utility | Yes – next month | High | Avoid |
| Token C | 50% | Medium Utility | Gradual unlocks | Moderate | Watch closely |
Advanced DYOR Tactics (Go Pro Level)
Once you’ve mastered the basics, level up with:
1. On-Chain Analysis
- Use Etherscan, Dune, or Glassnode to track big wallets and whale movements.
2. Compare Protocols
- Example: Compare Uniswap vs SushiSwap TVL, volume, and user base.
3. Sentiment Analysis
- Monitor Crypto Twitter, Reddit, and Google Trends.
- Tools: LunarCrush, Santiment
4. Smart Contract Audits
- Look for Certik or Hacken audits.
- No audit? Red flag!
Final Tips for Becoming a DYOR Pro
- Cross-verify everything from multiple sources
- Always read between the lines, especially in whitepapers
- Don’t invest in what you don’t understand
- Learn from your mistakes and track what worked and didn’t