How to DYOR in investing | Bitcointalksearch.org

dansus021

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Quote from: Bitcoin_bullish on August 16, 2020, 09:55:50 AM

I've spent time in the past researching altcoins and trying to find what I thought was opportunities in vain. I get it we can make 10x- 100x and make millions by finding projects that won't dump their coins on exchanges the moment they get listed. Still, what have these new projects to offer? 99,9% of them nothing.

I'm serious less than 1 out of 100 projects have something to offer. We have 10,000 currently and only 20-30 of them will be relevant. Most projects do not have anything besides an ERC20 token and a few lines of Solidity code.

Basically, I'm treating altcoins as a way to add to my Bitcoin position and I'm not feeling well holding too many of them. I don't see them as having long-term value and certainly I didn't gamble with any DeFi. I bought some alts during April, bought some more during June, and sold a few weeks ago. I felt glad to increase my Bitcoin position but probably I'm not going to go bellow 90% BTC again and felt it was unnecessary risk.

Anyway, the post describes most of the essentials when doing research. In case of a fraudulent project, a red flag will probably appear after taking these steps.

100 percent agree with your sayin, actually theres dozen scam project that almost everyday pop up from airdrop and sorta inversting shi* and yeah most of it on ERC 20 other token. They usually say this project actually have impact to real life or somethin like that. Dont invest to people who DM you and share screenshot their Success from "A" company

libert19

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If they give any discounts to any group of investors (early etc) that's always a red flag

I wouldn't consider it a red flag but if it's hefty discount like get double or something like that then it is a red flag, almost all projects give some discount to early buyers these days, imo 5-10% is ok.

cryptoperkele

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Quote from: tyz on January 24, 2021, 11:47:13 AM

You forgot a few essential things: the whitepaper, the source code and the new technical developments the project offers. The whitepaper and source code should be the main factors to check before you do an investment into crypto. If you not familiar with the technical background and if you can not read source code then look for competent opinions from people in the community who can.

Literally amongst the first things i mentioned was "Read the project white paper".

But i agree with the source code thing, and opinion of an expert about it would be valuable. I thought i had included that in the section about the project itself or "competition". So that's a good point.

I'll update that later and give you credits for noticing that.

tyz

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You forgot a few essential things: the whitepaper, the source code and the new technical developments the project offers. The whitepaper and source code should be the main factors to check before you do an investment into crypto. If you not familiar with the technical background and if you can not read source code then look for competent opinions from people in the community who can.

cryptoperkele

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Well i guess i was wrong with the sol. Marketcap just mooned and price even moved forward. I didn't count the effect of the altcoin season.

AakZaki

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Quote from: CucakRowo on August 17, 2020, 01:20:06 AM

Quote from: GreatArkansas on August 16, 2020, 06:53:12 PM

-snip-

Can't agree more. For me, TA is one way of analysis that I think is effective. As I have mentioned in my previous comments.

Quote from: CucakRowo on August 16, 2020, 11:02:50 AM

PS : I am TA lovers (tend to be TA hardcore).

However, imo, wouldn't it be better if we (at least) understood the fundamental and sentiment causes of price movements. Like forex traders usually did. They always check forex factory, in case there's a news that cause price move sharply or strengthen previous trend.

you're right about the fundamentals. At least we must also understand the fundamental causes and sentiment of price movements. Fundamentals are signals of the start of a coin pump and dump. If you only rely on TA, it will not be balanced and less accurate.

back again OP's discussion about DYOR i investing. All the points mentioned are interrelated and equally important. Stay on how to do correct and accurate research. Investments will be very profitable if you do research well and get a successful project in the market.

libert19

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Quote from: khaled0111 on August 15, 2020, 06:51:29 PM

Quote from: cryptoaddictchie on August 15, 2020, 07:32:47 AM

Simple whales are done profiting on them. So whats the point of leaving their shares for too long? Most traders have this kind of strategy. They will play along until they lured others and when the price is at its peak they will dump their tokens and find new gems.

Exactly, and this is why I don't agree with the "Marketcap" point mentioned in OP. You shouldn't build your investment plan based on the coin's marketcap.
Investing in coins with low marketcap doesn't guarantee a profit simply because such coins can be easily manipulated by whales.
If you are a small investor then most probably you will end up losing your money.

Nothing guarantees anything, op probably meant the huge profits are to be made with low caps. If you get lucky somehow, you can get in these low cap 'gems' before whales enter and boom.

friends1980

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Nice work OP.

One of the most difficult things for people on these boards is to not only read about DYOR and know that you should, but actually doing it. How many members on these boards who participate in bounty campaigns or even invest money in new projects, have actually taken the time to read the complete whitepaper? Some projects even create "one pagers", because they know most people don't even bother reading the whole WP.

So rule number one of DYOR should be to actually do your own research and not just having the intention of doing so. Wink

Allow me to add a link to your thread, to a post I made over 2 years ago - a short DYOR checklist - which is however still as relevant today: https://bitcointalksearch.org/topic/guide-newbie-guide-how-to-dyor-and-avoid-wasting-money-on-scams-4388247.

Feel free to add your comments. I don't tend to bump my posts, but I'm sure it can be helpful to others in the future, too.

AniviaBtc

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Simply look for the things that you don't understand in investments. By that, you can widen your perception towards things that will help you have a good quality of trading in the market.

It is not that hard to seek for information that you can use as a tool for learning. I'm really a fan of self-study and self-learning because it can make you independent about the things that you can use in your surroundings. Don't always rely on the things which are already in your mind, don't be contented with that, always look for more knowledge.

Xembin

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What I want to add for beginner investors is to be highly skeptical when dealing with crypto. Even in traditional venture capital the risks are very high, but in crypto they're through the roof because of added risks of scams.

Dealing with crypto, rules must be abide, more research must be carrying out not to be scam. No roof for short cut because all protocol must be follow.

cryptoperkele

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Quote from: SquirrelJulietGarden on August 19, 2020, 08:48:04 AM

One of the first thing to research is the transparency of token distributions by using the available tool for tokens on etherscan.io

YAM: https://etherscan.io/token/0x0e2298E3B3390e3b945a5456fBf59eCc3f55DA16
I click on Holders tab to get the distribution list https://etherscan.io/token/0x0e2298E3B3390e3b945a5456fBf59eCc3f55DA16
To get more visual distributions, click on Token holders chart but for YAM it is not found (not available) https://etherscan.io/token/tokenholderchart/0x0e2298E3B3390e3b945a5456fBf59eCc3f55DA16 Grin

Well, yeah, without an explorer it's harder/impossible to confirm tokenomics. Maybe i should update that, but that technique hasn't been used since Onecoin i think (and that's not really anything to do with altcoins anyway).

(You can still see the token YAM holders without a fancy graph - (https://etherscan.io/token/0x0e2298E3B3390e3b945a5456fBf59eCc3f55DA16#balances) And when you see that scam, you don't need a graph Cheesy

.

Harlot

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Quote from: cryptoperkele on August 14, 2020, 05:51:05 AM

Project itself (and the technical solution they offer):

Read the project white paper and start by asking yourself: "What problem does this solve?". Many projects are solving made up problems that can be solved with databases, or they have been solved already. They don't need a bulky blockchain. Some projects just put the word "blockchain" in there because it's a buzz word for easy funding from gullible investors that are incapable of doing research themselves.

I think after answering this question the next question you should as is if the team can do what they are trying to solve. Because even if they have this good unique vision and project if they don't have a team that can do what they are envisioning then this project will be stalled and probably lack any kind of development. That's why the project itself should also always be matched if their team can do what they want to do, this is really crucial for investors to see if they are looking for a potential in a project.

SquirrelJulietGarden

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One of the first thing to research is the transparency of token distributions by using the available tool for tokens on etherscan.io

YAM: https://etherscan.io/token/0x0e2298E3B3390e3b945a5456fBf59eCc3f55DA16
I click on Holders tab to get the distribution list https://etherscan.io/token/0x0e2298E3B3390e3b945a5456fBf59eCc3f55DA16
To get more visual distributions, click on Token holders chart but for YAM it is not found (not available) https://etherscan.io/token/tokenholderchart/0x0e2298E3B3390e3b945a5456fBf59eCc3f55DA16 Grin

CucakRowo

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Quote from: GreatArkansas on August 16, 2020, 06:53:12 PM

-snip-

Can't agree more. For me, TA is one way of analysis that I think is effective. As I have mentioned in my previous comments.

Quote from: CucakRowo on August 16, 2020, 11:02:50 AM

PS : I am TA lovers (tend to be TA hardcore).

However, imo, wouldn't it be better if we (at least) understood the fundamental and sentiment causes of price movements. Like forex traders usually did. They always check forex factory, in case there's a news that cause price move sharply or strengthen previous trend.

GreatArkansas

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Quote from: CucakRowo on August 16, 2020, 11:02:50 AM

Quote from: cryptoperkele on August 14, 2020, 05:51:05 AM

Ps: This article is not about trading but investing. In trading you should be focusing more on TA then fundamentals.

Ehmm.. i guess this PS is not correct. Afaik, when you trade, all these 3 things you should at least know. Very useful when market is in trend.
1. Fundamental
2. Sentiment
3. TA
(...)

Technical Analysis is very effective, especially you are late from their ICO/IEO or any offerings they conducted. But with the help of Technical Analysis, you can enter at any point, depends on how your analysis shows where or when you will enter and will turn to become investment.
I am worried again once we are again in bull run just like what happened before, around 2017- 2018 a massive of new people investing in cryptocurrency without such knowledge and got rekt.

hatshepsut93

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Finally someone made a decent guide how to actually do the research. People so often tell newbies to do research, but they don't understand that newbies can't do good research, and there's so many dangers for them, like influencers who shill for scams, website that promote shitcoins, fake communities and so on.

What I want to add for beginner investors is to be highly skeptical when dealing with crypto. Even in traditional venture capital the risks are very high, but in crypto they're through the roof because of added risks of scams.

CucakRowo

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aka JAGEND.

Quote from: cryptoperkele on August 14, 2020, 05:51:05 AM

Ps: This article is not about trading but investing. In trading you should be focusing more on TA then fundamentals.

Ehmm.. i guess this PS is not correct. Afaik, when you trade, all these 3 things you should at least know. Very useful when market is in trend.
1. Fundamental
2. Sentiment
3. TA

The combination of points 1 & 2 will affect TA. Example: Do you still remember MA golden rules? If the MA 50 breaks (pierce) the MA 200, based on TA. market will experience trend up/down. But what will happen if points 1 & 2 experience significant changes? From negative to positive as example? Ofc, MA position will follow right?

Focusing in TA is good. However, Imo, if you (at least) able to mastering fundamental and sentiment analysis, then both analyzes will strengthen your TA.

PS : I am TA lovers (tend to be TA hardcore).

Bitcoin_bullish

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I've spent time in the past researching altcoins and trying to find what I thought was opportunities in vain. I get it we can make 10x- 100x and make millions by finding projects that won't dump their coins on exchanges the moment they get listed. Still, what have these new projects to offer? 99,9% of them nothing.

I'm serious less than 1 out of 100 projects have something to offer. We have 10,000 currently and only 20-30 of them will be relevant. Most projects do not have anything besides an ERC20 token and a few lines of Solidity code.

Basically, I'm treating altcoins as a way to add to my Bitcoin position and I'm not feeling well holding too many of them. I don't see them as having long-term value and certainly I didn't gamble with any DeFi. I bought some alts during April, bought some more during June, and sold a few weeks ago. I felt glad to increase my Bitcoin position but probably I'm not going to go bellow 90% BTC again and felt it was unnecessary risk.

Anyway, the post describes most of the essentials when doing research. In case of a fraudulent project, a red flag will probably appear after taking these steps.

cryptoaddictchie

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Quote from: khaled0111 on August 15, 2020, 06:51:29 PM

Exactly, and this is why I don't agree with the "Marketcap" point mentioned in OP.

Im a risk taker too and I understand what OP means. Partly I agree and not. First, if youre a trader and your goal is to make profits. Its logical to think that low marketcap can make you earned cause price appreciation could happened especially if its new project. However, you do this, if the project has solid concept and showcase their importance to the crypto world otherwise it will be a pump and dump case.

Quote from: khaled0111 on August 15, 2020, 06:51:29 PM

You shouldn't build your investment plan based on the coin's marketcap.
Investing in coins with low marketcap doesn't guarantee a profit simply because such coins can be easily manipulated by whales.

Its only a part of of a basis for a success trade but everything boils down to the project performance. If whales thought of it as shitcoin hype, this will skyrocket but even whales can know if they are playing it right or not. Anyway alway dyor to be confident when dealing with trading new projects.

pakhitheboss

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Actually it is very hard now days to find a good project.

In my opinion there are four things that everyone should look into any project and they are:

1. Tokenomics or coinomics
2. Marketcap
3. Product
4. Usage

I always prefer projects that are related to blockchain technology and are trying to improve it. I do not invest in projects that are looking to change the real world scenario.

Topic: How to DYOR in investing (Read 623 times)