WE HEAR DYOR (Do Your Own Research) OFTEN IN CRYPTO THIS IS A GUIDE ON HOW TO DO JUSST THAT
1. Project Fundamentals:
- Whitepaper: Read it thoroughly. Focus on the problem it solves, utility, tech, roadmap, and tokenomics (supply, distribution, use cases).
- Team & Backers: Research founders/devs (LinkedIn, past projects). Check if reputable investors/partners are involved (avoid anonymous teams).
2. Technology & Use Case:
- Is the blockchain open-source? Check GitHub activity.
- Does the project solve a real-world problem? Avoid vague promises.
- Audit reports (e.g., CertiK, Hacken) for smart contracts?
3. Tokenomics:
- Circulating vs. max supply. High inflation or large “team/VC allocations” are red flags.
- Utility: Is the token essential (governance, fees) or just speculative?
4. Community & Social Proof:
- Active, organic community (Twitter, Discord)? Beware of bots/hired shills.
- Partnerships: Verify legitimacy (many projects fake collaborations).
5. Market Data:
- Use CoinGecko/CoinMarketCap for metrics (market cap, volume, liquidity).
- Compare competitors. Is the valuation realistic?
6. Security & Risks:
- Check exploit history. Is there a bug bounty program?
- Regulatory risks (e.g., SEC lawsuits, bans)?
7. Sources & Tools:
- On-chain data: Nansen, Glassnode.
- News: Follow credible outlets (CoinDesk, The Block), not influencers.
- Forums: Reddit, Bitcointalk for unbiased discussions.
8. Critical Thinking:
- Avoid FOMO. Verify claims; don’t trust anonymous “insider tips.”
- Scam red flags: guaranteed returns, hyper-aggressive marketing, lack of transparency.
Final Tip: Cross-reference info from multiple sources. Stay skeptical, and never invest more than you can lose. Crypto moves fast—keep learning!