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Become a Crypto Pro: DYOR tips
What is the number one skill to succeed in crypto? Technical knowledge? Financial literacy? We take a stand for critical thinking. The recent story with Tether and the Wall Street Journal has shown the importance of the not-believing-everything-you-read ability. Even if it’s a trusted media with a 3.5 million audience and a 130+ year history.
In one of its latest blog posts, Tether Limited — the company behind the USDT stablecoin — has analysed the Wall Street Journal publications and presented some curious facts. Tether claimed (and provided evidence) that the WSJ published more than 80 articles about USDT, mostly representing it in a bad light. But the most interesting part of the findings is that, at the same period of time, the reputable newspaper issued 28 pieces mentioning the FTX exchange — and the majority were positive. In case you haven’t come across news on FTX, it’s a cryptocurrency exchange that collapsed in November 2022. Was it intentional or not, the WSJ made a negative contribution to the Tether and USDT reputation.
Taking this into account, the significance of DYOR (do your own research) in crypto cannot be overestimated. The rule is to remain sceptical about what you read and see. Check any info. Don’t blindly trust both: singing praises from influencers or negative comments. The first ones can simply be shilling — covert advertising of a cryptocurrency to positively affect its price. While bad forecasts can be influenced by fake news. We’ve recapped some of the basic tips to help you to navigate the ocean of data.
Get information from different sourcesSometimes it’s difficult to distinguish a shill from a real comment. Don’t get tempted by celebrities endorsing any coins, especially if they haven’t been in the crypto community before.
Look at the market cap of the cryptoThe number will tell you how quickly or intensely a crypto asset is growing. The greater — the better.
Check cryptocurrency distributionBeware of the projects with large portions of crypto concentrated in the hands of few holders.
Examine the site and socials of the crypto projectDon’t forget to look at the roadmap. An anonymous team and overpromising statements should be considered red flags.
The last thing to remember, “doing your own research” is a continuous process. Crypto weather is changing and sometimes at high speed. So stick to the main rule — learn to earn.
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