Telling you to do your own research feels like throwing soap into a river. It doesn’t help. It casts you into a seemingly endless search for answers or worse still, inaction.
Although DYOR is not advice you want to hear, it's something you must do. How can you go about it productively?
"Risk comes from not knowing what you are doing."
~ Warren Buffett
Don’t be afraid of missing out
Before you embark on any research for a crypto project to embark on, get your attitude right. There is a thin line between looking for opportunities and experiencing FOMO (fear of missing out).
Cryptocurrencies can make you rich beyond your wildest imaginations but this is not a cast-in-stone verdict for all crypto projects.
There are rug pulls. And, there are legit projects that require commitment and dedication to pull through the slow start.
If you want to DYOR without getting overwhelmed and desperate, understand that you may have put some skin in the game for the long term when you see a legit project.
"Time is the friend of the wonderful company, the enemy of the mediocre.”
~ Warren Buffett
There's no easy money anywhere. If it's easy and legit, someone or a team somewhere did the work.
You will see Crypto projects in several stages of development, don't let your expectations make you have a lopsided view of facts during your research.
Let the answers make sense to you
If you keep getting bamboozled by complex terminologies, and can’t seem to get answers to the questions you have, the project is not worth risking.
Always get an answer. It's not foolish to ask questions.
In Warren Buffett’s words:
“Never invest in a business you cannot understand.”
Don't hesitate to make in-person calls if you can. Contact details are not for fancy, stop ignoring them.
Ask the right questions
Asking the right questions somewhat feels like the same advice as DYOR. That’s correct.
You must have questions you need answers to before embarking on any research. This principle applies to any field and anything.
Asking the right questions is the core of DYOR. Here are a few examples of the right questions:
- Who is the team behind the token?
- When was the project created?
- Do they have a product roadmap?
- Do they have a use case?
- How many coins are in circulation?
- What is the coin distribution structure like?
- What is the sales volume?
- Do they have a community? [usually, Discord, Twitter, Telegram communities]
- If yes, how big is their community?
- If yes, what’s the quality of the conversations?
You want to look out for indicators of strong belief and support for the project. You also want to look out for clear and realistic goals. Furthermore, if according to the coin distribution structure, the majority of the tokens will be owned by the core team, it’s not a good sign.
If you're looking for a project to research, vet and invest in, look into Afridex Finance.
We're building the future of finance in Africa with blockchain infrastructures.
You want to be a part of our story.