How to do your Research in Defi (Part 2)
All definancial advice you will ever need...continued.🔬
In our previous article, we covered choosing the right cryptocurrency, questions to ask, and how to recognize a reliable source. In this one, we go over the different mediums to do research in and other handy tips.
The Different Mediums to DYOR
1. Â Coin Market Cap & Coin Gecko
Let’s say you find out about a promising DeFi project you want to invest in. One of the first steps you take is to go to trustworthy websites like CoinMarketCap or CoinGecko to get a first assessment of the project. Check the market cap to see if it is a low, small or mid-cap investment, and make sure there’s been some decent recent trading volume—many coins have been dead for months. Take a look at the chart to determine its recent performance and form a rough estimation of its risk-reward profile. You should be looking to identify tokens whose prices are in an uptrend, as buying into these projects guarantees a higher chance of a profitable trade. Avoid buying into projects that are in a downtrend, instead do some research and find out why other investors are selling off and determine a good price to buy in the future. This information will help you decide if it’s the kind of investment you’d like to add to your portfolio.
2. Â Take a deep dive into social media platforms
Crypto information can be extremely time sensitive, and the best place to keep track of these updates is on social media platforms, especially for beginners. Let’s take a look at a few popular social platforms you can outsource for crypto information.
·   Twitter
Getting first-hand information fast plays a huge role in making early decisions on crypto investments, which makes Twitter a very useful tool. News on YouTube might take a while to be broadcasted or get enough reach due to the time required to film and edit video content. On Twitter, however, you can read announcements and the latest news from projects and exchanges in real time. Given how time-sensitive crypto information is, this is considered the best way to get the info first.
·     Facebook
Facebook groups are also a great avenue for information for beginners in crypto. Finding a good crypto community whose members consist of both new and experienced traders on Facebook is important. There's no shortage of crypto content on these platforms and this will help support and fast track your research.
·     Reddit
Similar to Twitter, Reddit is another large public forum you can outsource for information on Crypto. When evaluating a crypto asset for investment on Reddit, find out how active the community is in forums. How many followers are on the coin’s subreddit? Is the team helpful in sharing information about the project? Does the project team interact with the community? Does the team do AMAs (ask me anything) for the community? If the coin has some serious potential, there is usually a Reddit discussion happening around it.Â
·     YouTube
Although YouTube is also a den for affiliate marketers and influencers that put up unashamed click-bait titles, the video streaming platform is a popular place for getting reliable knowledge on crypto. As a beginner, it could come in handy to have crypto concepts explained to you by a real person in simple interactive content you can understand. However, ensure to prioritize people with a decent number of content and followers, who have a good reputation and give out reliable information. A few YouTube accounts we recommend for beginners are Ellio Trades, Coin Bureau, The Crypto Lark & BitBoy Crypto.
·     Telegram/Discord
The Telegram and Discord messaging platforms are good sources for updates, joining community forums, and learning about trends and market sentiment analysis. These platforms have a passionate crypto community, and over time, you’ll discover legit groups and communities to join. Always start by following the official channel and groups of the coin or project you are interested in, and also be aware of chatbots and fake accounts that could be looking to phish user information or spread misleading messages about the project. Be aware that the official team members of any project will never send you a private message requesting for your recovery phrase, this could be a red flag to look out for. Also, avoid clicking any links sent from these unverified accounts as this could compromise your wallet security.
3. Â Crypto news websites and blogs
Following established crypto news websites and blogs is also a great way to get information on prospective projects and general crypto headline news. Some of the recommended crypto news outlets you should subscribe to their newsletters include Coin Telegraph, Bitcoin Magazine, NewsBTC, Faces Of Web3, Crypto Briefing, and crypto-news.net.
4. Â The official website and white paper
Before investing in a project, take some time to evaluate the project’s official website unless the white paper is comprehensive and not filled with ambiguous information and fake promises. Coins and projects that have genuine potential will most likely have a good and well-optimized website that openly shares information about the project.  You should be able to identify poorly designed websites, spelling errors, and a lack of transparency around the team. These are red flags of a shady investment or just an outright pump and dump scheme.
5. Â Research the developers
Look into the members of the team behind the project and ensure they’re reputable and well known in the crypto community—especially if it’s a new project. You can find out about their social accounts and check for their track records and involvements with other existing projects.
Handy Tips for DYOR
 Don’t believe everything you read. Always get a second opinion.
DYOR is a continuous process, and it’s necessary to always conduct research on every crypto asset before investing as things change quickly in the crypto space.
Be wary of false info, exaggerated hypes, scams, and impostors in the crypto space
 Be patient and seek out enough information before making your investment decision.
Always remember it’s your money, therefore it’s your decision. Avoid crypto communities whose members coerce you to invest without proper information about the project.
Understand the role of your intuition and listen to what your gut feeling is saying about the project after making your thorough research.
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