DYOR: Crypto Traders Guide On How It Works
I guess the more advanced already know the meaning of DYOR, for the newbie that might not know the meaning, it simply means Do Your Own Research, and it's a very important part of trading, you can not call yourself a crypto trader and you don't do your own research on a coin or coins you want to buy. you are supposed to do that so you can make important and informative decisions on what coin or coins you want to buy or a coin you have bought already, whether it is going to be a coin you would hold for short term or a coin you would hold for long term or a coin you run from and not invest your hard earned money on, helps you avoid pump and dump coins.
How DYOR (Do Your Own Research) works and what you should check out for while doing your research, for optimum results and a successful or profitable trading life, there are three important things to do while doing your research.
The Fundamental analysis part:
This to me is the most important analysis we have, it cut across so many things to know about the coin you want to invest in, it is not only about what you see on the news or social media platforms because most things you see there could be potential Gold mine or people just ranting and making unnecessary noise around the crypto market.
Take your research, a step further and look beyond the noise, go to the official website of the coin, read their white papers, understand it properly, what is the use case of the coin, what real life problem would this project solves, who are the team members behind the coin, who are their partners (it could be companies or celebrities), lastly understand the tokenomics.
What Is Tokenomics:
The study of the economics of crypto tokens or cryptocurrencies is called tokenomics. It fundamentally involves studying the factors that impact the demand and supply of tokens. The factors include quality, distribution and production of crypto tokens.
The Technical analysis part:
Technical analysis is basically the study of the past price of a coin on the crypto market chart, and use that information to predict the future price or directions the coin is heading towards, and to do that you need to understand the chart patterns both the reverse and continuation patterns, the trend directions both bearish and bullish, candlesticks on the chart and what they represent, we still have candlestick patterns and channel patterns.
The Sentiment Analysis:
The crypto market is influenced by sentiments all the time, which means people's feelings that lead them to the action they take next either to buy or to sell their coins, so it's basically you studying people's feelings on what they think about the particular coin, from the choice of words they use to talk about the coin if it's negative that's a bearish signal and if it's positive then that's a bullish signal.
I recommend going to Twitter for your sentiments analysis, some people might realize it but Twitter is the biggest social media platform where you can get crypto updates and people's opinions easily, it has the biggest crypto community, but there is still discord and telegram that can help.
Please follow me on:
THANKS GUYS FOR READING MY POST.
Posted Using LeoFinance Beta
Nice introduction to doing crypto research! These are the essential pieces, but each can be expanded to all kind of levels, depending on how nerdy you want to get with it, lol.
Reblogging for our audience at Coin Logic.
Thank you and I appreciate the reblog