You hear it all the time, “do your own research.” But what do you research? With cryptocurrency, what’s most essential to research is who’s behind the coin, tokenomics, the plan or roadmap, and the potential for passive income

Discover the Five Ws and an H of Cryptocurrency DYOR — Photo 49285725 Alexei Novikov — Dreamstime.

Of course, everyone wants to be the next crypto millionaire, but the reality is that it usually won’t happen if you only listen to the hype and buy when everyone is talking about a specific coin.

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” — Warren Buffett.

Every good journalist or researcher knows the five “Ws” and an “H.” Who, what, when, where, why, and how. It’s fundamental to every subject we research.

Most crypto millionaires bought during a bear market or when a coin was first released and waited for a bull run or a specific event that drove the price up. Although it’s not always necessary to get it during the initial coin offering (ICO).

Everyone is trying to buy when there’s a lot of hype about a coin, so you might get in when it’s at its all-time high (ATH), and then the “whales,” who probably created much of the hype in the first place, sell.

“A cryptocurrency whale more commonly called a ‘crypto whale’ or just a ‘whale,’ is a cryptocurrency community term that refers to individuals or entities that hold large amounts of cryptocurrency. Whales hold enough cryptocurrency that they have the potential to manipulate currency valuations.” — Investopedia.

When I first started investing in cryptocurrencies, I bought what everyone was hyping on their podcast and YouTube videos and couldn’t understand why the price of all my coins soon faded after I bought them.

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Source: https://medium.datadriveninvestor.com/do-your-own-research-dyor-for-cryptocurrency-purchases-c9cf4e2b45df

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