How to Do Your Research in Crypto?
For novices, conducting independent research, or DYOR, before dabbling in the cryptocurrency market can be challenging and perplexing. You must be wondering where to start, which sources to believe, and how much research is truly required to ace the crypto game now that you know that conducting research is an essential component.
When making an investment you don't completely understand, always continue with caution and keep an eye out for other fantastic prospects. The research becomes considerably more intriguing as a result.
Although we have outlined a detailed procedure for DYOR in cryptocurrency, you may use the list below to get a sense of the scope of your research.
Fundamental Analysis
Technical Analysis
Social media Analysis
On-chain Analysis
In cryptocurrency, DYOR necessitates the collection and filtering of information, which is challenging given the abundance of hidden warning signs in the market. DYOR educates you on the latest developments in the cryptocurrency world and helps you identify the resources and tools that will support you in making the best choices.
When combined, these analysis techniques can assist you in interpreting market data and provide you with several insights that will direct your trading. The list of top analytical techniques for traders of various skill levels is provided below.
Fundamental Analysis
The fundamental analysis of crypto is an evaluation strategy that helps in finding the fair value of an asset on the market. This practice has the steps of reviewing business practices, whitepapers, roadmaps, marketing strategies, teams, tokenomics, network activity, development, etc.
Technical Analysis
The second step to take your DYOR in crypto to a better level is technical analysis (TA). In most cases, when you spot trading in cryptos by looking at historical price movements, you can identify a strategy where the prices of the crypto are available at a decreased rate.
Finding the source of trustworthy information is extremely necessary as everyone in the crypto world, including those with zero authority appears to have an opinion. Being selective is the only approach to save yourself the trouble of getting entangled in a huge pile of info coming from all directions.
On-Chain Analysis
For the on-chain analysis, you have to complete the above-mentioned analysis as this aspect of DYOR in crypto is solely based on blockchain data.
To do this, one must analyze on-chain metrics such as transaction count, transaction value, hash rate, transaction fees, staked amount, status, and active addresses.
All this information is shown to the stakeholders in simple charts that traders can analyze to view different on-chain metrics. On-chain data analysis is great for smart traders as well as novice traders. It is because it gives the exact facts and figures of the asset to predict the market pattern in a better way.
