DYOR - Do your own research (or risk getting rekt)

Team Luno
Back to Blog


3 minute read

If you’re new to cryptocurrency, welcome! It’s time to get those fingers tapping, and we’ve compiled a list of some great resources for first-time crypto enthusiasts. From understanding the underlying technology that powers it all, to ensuring you don’t lose any money to scammers and phishers, we’d recommend you take your time with it.

There is an abundance of information and media coverage about cryptocurrencies, and the enthusiasm from those with their own interpretations is great. However, it’s important to remember to take everything you read with a grain of salt. The best advice we can give you is to do your own research in a variety of different places, from different people and to use your own judgement at the end of it all.

This is why DYOR is the most important acronym to remember.

It’s a popular term in the traditional investment world, but it has since gained much traction within the crypto community too.

The cryptocurrency landscape is still kind of the wild, wild west, so, unfortunately, finding the incorrect information is often easier than finding the truth. Your own critical thinking is imperative. It’s unfortunate but important to note we also live in a time where the media can have a heavy hand in spreading a specific type of narrative that may not be 100% factual.

Start at the beginning

With the wealth of information out in the open in this internet age, it can be daunting to know where to start. Here are a couple of questions to ask yourself before trusting what you read when doing your research. Your own personal cryptocurrency resource check-list, if you will:

  1. What/who is the source? Anything is a Google-search away.
  2. Are they well-known and respected within the crypto community? We’re not saying newcomers don’t have value to add, but it’s a lot easier (and safer) to take the word from those who have proven to be legitimate and have some sort of tenure within the industry.
  3. Are they pushing you towards a specific investment, or giving you financial advice? You might want to find out why. Are they going to benefit from your money in any way?
  4. Do they have social media channels? Are they legitimate? Can you easily reach out to them? Any other way to verify their authenticity is always helpful, and it’s a bonus if they’re able to answer any of your questions.
  5. What narrative are they trying to push?

Pretty much anything pertaining to personal finances and investing is personal. Anyone who isn’t qualified should not be offering investment advice. And while it may be tempting to take up an enticing offer, we know first-hand it often doesn’t end well.

Even trusted media publications and well-known figures have fallen victim to publishing unfactual information that can’t be verified by a secondary source, or have provided advice that may be highly subjective. We all know news spreads like wildfire, and media publications have a responsibility to report on whatever’s being talked about. It’s important to remember the cryptocurrency industry is still very much in its infancy, which means there is no real one point-of-truth when it comes to finding complex information.

So what can you do? Well, in between pulling out your hair trying to find elusive answers, do your own research, and do all of it. Only you can make judgements based on research gathered from a variety of sources.

The beauty of the new crypto era is the opportunity to make your own well-researched and thought-out decisions in order to have control over your own finances (along with fewer fees and considerably less red tape). If you were buying a new car, you’d be wise to check various factors like its petrol consumption, for example. So when you’re making decisions based on your hard-earned cash, it makes sense to do the same. If there’s one more piece of advice we can’t stress enough: never invest more funds than you can afford to lose.

Check out our Help Centre, our Luno blog, and our Medium blog for informative crypto resources. Let us know on Twitter what you’d like to learn about next!

Avatar Team Luno
Author

Team Luno

On our way to the moon, we write about all things crypto. And don’t forget we’re humans too. Our blog conveys the views of Luno and the many unique opinions and characters within our team. We’ll never provide you with financial advice, and we urge you to conduct your own research before purchasing or trading any cryptocurrencies. It’s a brave new world out there, and the market can be volatile at times, so never trade with funds you can’t afford to lose. Want to let us know how much you love our blog? Tweet us @lunomoney.

It’s never too late to get started.
Buy, store and learn about Bitcoin and Ethereum now.

Desktop Icon Apple App Store Logo Google Play Store Logo