Promoting the DYOR (Do Your Own Research) culture for crypto investing

Doing your own research (a.k.a. “DYOR”) is a common mantra that’s used frequently across the cryptocurrency and blockchain communities; and for good reason.

There’s been a serious trend in the crypto world for projects to drive hype due to large partnership announcements, and in some cases, even announcements about upcoming partnership announcements.

The award for the most notable case of the crypto announcement about an announcement goes to Justin Sun, CEO of TRON (TRX), who has been known to use this as a tactic to market his project on Twitter.

announcement announcement justin sun

It’s safe to say that this tactic will likely have diminishing returns in the long-run, and each subsequent announcement will probably be taken less seriously; especially with memes like this floating around.

TRON Partnership Announcement Announcement
TRON Partnership Announcement Announcement

In any case, the announcements often result in serious upticks in the trading price of the corresponding cryptocurrencies.

If you question the validity of these sorts of announcements and hyped partnerships, you can be sure someone will accuse you of “FUDDING” (a.k.a. spreading fear, uncertainty, and doubt about the project). This is where the concept of DYOR (Do Your Own Research) comes in.

Promoting the DYOR culture

People on both ends of the hype for specific crypto projects tend to urge others to DYOR, which is good advice for all us of. The irony is that both sides who urge others to DYOR believe that doing so will lead others to the same corresponding conclusions.

With that said, there can be no harm done in encouraging proper due diligence, and promoting this DYOR culture will only lead to more informed investors and therefore, more value added to the overall community.

Reflecting on “ICO-mania” and the newer partnership announcements trend

As we look back on 2017 and the mania that swept the crypto community with ICO’s for hundreds of new projects within months, we can gain an insight into why 2018 may very well be the year of partnership announcements.

The connection here is that, although ICO’s will undoubtedly continue to launch in 2018 and beyond, these hundreds of young projects will all be vying for investors’ attention. They will be competing for dominance and out-right survival in what may already be characterized as a saturated market for utility tokens.

Smaller projects will use partnership announcements with big partners as one of the most powerful weapons in their battle chests to drive their token prices and gain relevance in the crypto community.

This is a negative phenomenon for two reasons:

  1. It taints the overall crypto market’s reputation, making projects seem untrustworthy and driven mainly by hype.
  2. The project teams promoting hype around their announcements will often lose credibility.

The pressure for constant updates and announcements

As the investor communities for projects wait for the launches of the projects they funded, they are constantly monitoring their investments for updates. If nothing happens for too long, the price of the tokens begins to tank.

This pressure to show constant progress weighs heavy on the shoulders of project teams and it explains why they feel the need to inform investors about anything that furthers the course of their projects. Announcement-worthy updates include things like testnets, alpha versions of platforms and wallets, rebrands, partnerships, and of course announcements.

DYOR is a continuous process for all of us

Whenever you consider investing in a cryptocurrency project, it’s important to thoroughly understand the use case behind it, the technology and execution plan, and other details such as the token economics and background of the development teams.

Furthermore, the monitoring and examination of cryptocurrency projects is not a one-time deal for investors. It’s an on-going process and investors need to stay informed about things like project milestones, changes or additions to development teams, announcements, and external threats from competing projects or changes in the regulatory environment.

Don’t use “DYOR” to defend against skepticism

Although promoting DYOR does no harm, it’s often used as a lazy “out” to the scrutiny of skeptics. I have often seen calls to “DYOR” thrown out on message boards and chat rooms as a response to critics’ questions about why certain projects are good investments. This is not very helpful.

Perhaps these people are trying to avoid giving out what can be considered “investment advice” and save themselves from possible trouble from regulators down the line with the “DYOR” response, but in my opinion that would be both lazy and majorly paranoid.

Do And Share Your Own Research (DASYOR)

If you’re going to invest the time and energy into proper due diligence for cryptocurrency projects, you should take it one step further beyond DYOR and also share your knowledge with others.

In the same way that the open source code and transparency of blockchain technology are strengths for the decentralized cryptocurrency community, so can a movement to more openly sharing our knowledge (both good and bad) about cryptocurrency projects.

Opening up more dialogue and diverse views and opinions will enrich the crypto community and work to the benefit of both investors and project teams.

In conclusion, and as a call to action, always remember to DYOR, but please also keep in mind why you should DASYOR when addressing skeptics and critics.

Hold On for Dear Life

Block the FUD and HODL in a down crypto market

Investing and trading cryptocurrencies is almost entirely speculative as the technology is still quite young and there are no widely accepted and reliable valuation metrics to use for valuing coins as investments.

Therefore it is highly psychological and emotional for some people. For these reasons, the high volatility and fear-greed cycles continue to drive investor decisions to buy & sell in ways which, to put it lightly, are against their best interests.

It’s human nature to listen to FEAR, UNCERTAINTY, and DOUBT (FUD) in order to protect your investments. In fact, it is a protective mechanism for you to pay attention to FUD. For long-term success in the crypto space, you will need to learn to block the FUD and HODL in a down crypto market.

FUD comes in various forms and affects some more than others; both coins and their investors.

Primary Examples of Crypto FUD (Macro-Level):

  • Government regulation and bans on crypto in general
  • Exchange hacks and other “mishaps” on exchanges
  • Negative mainstream media reports

Secondary Examples of Crypto FUD (Specific):

  • Missed Goals/Roadmap targets and deadlines
  • Partnerships falling through
  • False rumors & disinformation
  • Negativity about dev teams and founders
  • Misleading technical analysis

While it’s true that technical analysis is a valuable tool in crypto investing and trading, if there is big negative news, the FUD Factor will kick into effect and trump any T/A indicator traders are looking for and all the price analysis goes out the window for a massive dump.

If you find yourself in one of these situations holding the bag on a coin with a plummeting price, it’s almost always best to hold and wait for the volatility to blow over. Eventually, prices will consolidate and you will have a better opportunity to make a rational decision more in-line with your original plan of investment.

Always Have a Plan and Stick to it

You should always have a plan and goal for your investment portfolio as a whole, and what role each position plays in the overall portfolio.

Your plan does not need to be stringent enough to prevent any flexibility to adapt to new market conditions and capitalize on them, but it should cover the basics as to when you will take profits, whether based on the value or on a time horizon.

Having such a plan will prevent you from making bad short-term decisions when the FUD kicks in. By sticking to your plan, you make only rational decisions and wait patiently for your milestones on the longer time horizon.

We Can HODL Here – A Tip for Short-Term Thinkers

More seasoned investors tend to handle volatility much better than newbies. If you have a problem handling the short-term fluctuations you may need to work on tricking yourself into thinking long-term.

The “We Can HODL Here” Meme

If you use your imagination, how different would you feel if you could skip past countless days of impulsively checking coinmarketcap and blockfolio and find enormous gains without expending any mental or emotional energy deciding whether to panic sell or not?

At the end of the day, HODLing is a decision only made easier by the passing of time. Impatience is what causes people to screw up and give into FUD.

Was Selling Low Part of Your Plan?

I have a personal friend who recently consulted with me about selling off their crypto holdings, or more accurately, all the surplus capital in excess of what they had originally invested.

This person came to me for advice, on the basis of what they believed to be a rational thing to do. Here is an outline of the jist of the dialogue:

hodl: Why do you want to sell?

friend: Well.. I’m not ready to sit through a multi-year bear market

hodl: Now is a very bad time to sell. Do you truly believe we will see a multi-year bear market?

friend: I have no idea, i’ve been hearing [ABC..XYZ FUD] what do you think?

hodl: Absolutely not, there is no chance in my realm of possibilities we will see a multi-year crypto bear market.

friend: Well, what are you going to do?

hodl: I have no intention to “cash out” any of my holdings until 2020. At this point I will take a look at things and make some decisions. Did you have a plan for cashing out?

friend: Not exactly, but you believe in this much more than I do, and I’m just not sure where I see this going.

hodl: The truth is we should have all taken profits in December, but none of us did. We all suffered from recency bias and got caught up in the greed and hype. Was your plan to sell low?

friend: Lol, of course not.

hodl: Then you should ride this out and decide what level of risk and exposure you’re willing to deal with. Wait for this bear cycle to end, and if you still feel over-exposed, which obviously you do now, then take some out.

The Moral of the Story

Always have a plan and a goal to look forward to. During times like these, we really need to be able to “keep our eyes on the prize” and not give in to panic and FUD.

Panic selling, and considerations of panic selling are done so because you are thinking your situation may not improve or advance further. Therefore, you are retreating.

Don’t retreat – the battle is far from over, and crypto will prevail. I encourage anyone reading this to ignore the FUD despite the fear you may be experiencing.

Design available on prints, accessories, and apparel at the hodl art shop

Block the FUD
Block the FUD

Hold OFor Dear Life

Hodling through a Crypto Bear Market and Coping with Short Term Losses

It’s been a rough ride for crypto investors over the past couple months.

We’ve faced a crypto bear market where over half the market’s value vanished, leaving most investors holding the bag and coping with short term losses.

Nearly three months ago, on January 7th, 2018, the cryptocurrency markets set an impressive all-time-high in Total Market Capitalization of $834 Billion USD. To put into perspective how impressive this is, the Total Market Cap was just $102 Billion USD as recently as September 15th, 2017 during a big sell-off.

This means a well-diversified investor in the crypto space could have made 800% gains in a matter of only 4 months. 

Total Crypto Market Cap

This sell-off and short-term low last September was caused by bearish media reports of China banning cryptocurrency exchanges as well as Jamie Dimon’s infamous “Bitcoin is a Fraud” comment.

bitcoin is a fraud

The Current State of the Crypto Markets

Just as quickly as we saw the upwards price movements in Q3 2017, we have seen severe downward price movements in Q1 2018.

At the time of writing this, the Total Market Capitalization is just $340 Billion USD, nearly 60% less than the all-time-high of $834 Billion set in January. Investors have seen the same coins that pumped to the sky just months prior being slashed by over 50% in a matter of days.

Two particular events causing massive sell-offs: 

(1) The first expiration of CBOE Bitcoin Futures contracts on January 17th

(2) China completely banning and blocking external cryptocurrency websites.

Currently, the market no longer reacts to expirations of Bitcoin Futures contracts from CBOE or CME, likely due to the fact that they are settled in USD and NOT in Bitcoin.

We can only hope that the market will do the same eventually for any negative news out of China. There have been countless occasions where China banned cryptocurrencies in one way or another.

Coping with Short Term Losses in the Bear Market

Whatever the reasons for the sell-offs and price crashes, these are hard times for crypto investors.

It is a good time to take a step back and learn from any mistakes that were made; such as FOMO buying when prices are high, investing in scam coins, and not taking profits.

 

Understanding What Happened and Why

Last year’s growth came from a mix of old players increasing stakes, bullish developments and advancements in blockchain technology, ICO mania, and last (but not least) stupid money rushing in and looking to get rich quick.

To some extent, the valuation achieved by the cryptocurrency markets was driven by long-term levers such as the technological advancements and increased investment from long-term players. However, much of what we saw was driven by short-term thinking and FOMO.

It’s important to understand that these short term trends will come and go. They have no bearing on the long-term trajectory and potential for cryptocurrencies.

The ICO mania has calmed down, the FOMO buyers have all panic sold, and they will return later this year; along with even more newbies, as the adoption rate continues to increase.

Focus on Fundamentals and use more Tools

As a crypto investor, it’s important to understand that everything we put into this market is 100% speculation.

There are no established or reliable valuation methodologies for crypto. Keeping this in mind, Focus on the fundamentals and use as much information as you can (see this post for crypto valuation metrics) and use all the tools at your disposal before making investment decisions.

There are also a number of projects that aim to help crypto investors leverage more advanced tools such as Signals which will provide users with access to data science and algorithmic trading.

CoinFi is another project which plans to be the “Bloomberg of cryptocurrency” and bring advanced market intelligence tools to the market.

Develop a Long-Term Mindset and HODL your Crypto 

At the very least, learning to HOLD during bear markets will save you from serious losses from  emotion-driven selling.

It takes strong hands and thick skin to HODL through these crypto bear markets, but this is the price you pay for the opportunity to experience the enormous gains we saw last year and in prior years as well.

Investors should be fully prepared to experience these losses and practice restraint in going “all-in” so they are able to buy when prices are low; dollar cost averaging down on positions.

It’s also important to truly believe in the future for blockchain technology, If you’re a true believer and you have the vision for the future, the current downturn doesn’t mean much.

Over the past couple years, every crypto bear market has been followed by a more intense bull market.

Keep those hands strong and Hold On for Dear Life.

Check out this design at the hodl art shop.

Available in prints, mugs, accessories, apparel, and more!

 HODLCRYPTO IN BEAR MARKETS

Women Crypto Adoption on the rise? Katy Perry’s Crypto Claws, Paris Hilton

Only 5-7% of Cryptocurrency Users are Women

According to this Forbes statistic, there is about 1 female cryptocurrency user to every 17 male users. This low level of crypto adoption from women is concerning for all members of the crypto community.

The success of cryptocurrencies depends on mainstream acceptance of blockchain technology. This means we need more crypto women!

1 in every 5 of @hodlcrypto Instagram followers is Female

My instagram insights page is an anecdotal piece of evidence about this gender gap between crypto men (80%) and crypto women (20%)

Female Crypto Instagram

Are women getting the message about cryptocurrency?

 

The gender gap could mean that women aren’t receiving the right information about crypto.

But is that a valid argument? After all, men and women have access to the same information and tools on the internet.

Both men and women are equally enabled to google up info on bitcoin and blockchain tech, watch hundreds of experts in the space on youtube, listen to podcasts, follow social media, etc.

With low female participation in these alternative media channels, we can look to the mainstream media for the mass marketed messages about cryptocurrency we know are reaching women.

Mainstream Media’s constant FUD Machine for Bitcoin

There is no shortage of negative media surrounding Bitcoin and the cryptocurrency markets.

In addition to this, we also know that Bitcoin and cryptocurrencies are a very emotionally-charged topic, where people either:

A) Understand, and believe in the long-term potential of the cryptocurrency and blockchain movement

B) Don’t understand cryptocurrencies or blockchain technology and think it’s an unsustainable asset bubble

C) Understand cryptocurrencies and blockchain but still have negative biases towards it, and are incentivized to oppose the movement for their own reasons

For our purposes we will assume that the majority of women not participating in the use of cryptocurrency fall into group B. This is the group where mainstream media potentially has the most influence.

Warren Buffet and Jamie Dimon: Prime examples of Bitcoin FUD (Fear, Uncertainty, Doubt)

We are seeing a lot of the “centralized” world spread FUD about the “decentralized” world.

Warren Buffet warns crypto is a craze and a bubble that will eventually crash, leaving investors feeling “stupid”.

Warren Buffet Crypto FUDBuffet obviously has a lot to lose with cryptocurrency adoption, as this his investment firm will suffer due to the flow of investor capital from Wallstreet to the cryptocurrency market.

“You can’t value bitcoin, because it’s not a value-producing asset. Stay away from it. It’s a mirage, basically. The idea that it has some huge intrinsic value is just a joke, in my view.”

Jamie Dimon, CEO of JP Morgan Chase, has also gone on record numerous times warning investors not to invest in bitcoin to no avail. He obviously stands a lot to lose, for example if all his retail investors decide they want to move 5-10% of their portfolio holdings to crypto.

Jamie Dimon vs. Bitcoin
Jamie Dimon vs. Bitcoin

Thanks to uninformed and biased mainstream media reports, the general public is more confused than ever about the cryptocurrency world.

For the average person, entering the market is intimidating. It requires skills and knowledge that uniquely combine financial and technological know-how. This is represented as even more convoluted by mainstream media.

Due to a growing number of either misinformed or dishonest mainstream media reports, the average Joe, or Jan, cannot see the facts about cryptocurrencies or its potential.

Do skewed media perceptions of Crypto affect Women more than Men?

The mainstream media outlets have skewed public’s perspective of crypto to the point where they don’t even want to learn more.

They think they have heard enough about how it is a scam, BEWARE BITCOIN SCAM

a fraud,BITCOIN IS A FRAUD JAMIE DIMON

and of course, a bubble.GLENN BECK BITCOIN BUBBLE

 

Because the majority of people consume their media from these large platforms it’s safe to say that they aren’t getting all of the right information.

Why Aren’t more Women seeking out cryptocurrency information?

My opinion is that a main reason for lack of female cryptocurrency curiosity is due to a higher level of risk aversion among females.

This study out of the University of Chicago shows supports this claim:

 Finally, both testosterone levels and risk aversion predicted career choices after graduation: Individuals high in testosterone and low in risk aversion were more likely to choose risky careers in finance.

These results suggest that testosterone has both organizational and activational effects on risk-sensitive financial decisions and long-term career choices.

Women are, on average, more risk averse than men in financial decision-making (1). Gender differences in financial risk aversion, in turn, can be associated with differences in career choices.

For example, in our academic institutions, ≈36% of female MBA students choose a risky career in finance (e.g., investment banking or trading), whereas 57% of male students do so.

Although social and cultural expectations for risk behavior and career choices in men and women differ, biological differences between the sexes could play an important role in these differences in behavior.

Female Cryptocurrency Influencers

Katy Perry’s Crypto Claws

View this post on Instagram

$—CrYpTo ClAwS—$

A post shared by KATY PERRY (@katyperry) on

Katy Perry has one of the most followed accounts on all of instagram and the post – captioned “$—CrYpTo ClAwS—$” – managed to generate over 200K likes.

Perry has also tagged the Instagram accounts of all five cryptocurrencies, directing followers to their instagram accounts – ethereum_updateslitecoinofficialbitstellarlumens and moneroofficial.

Paris Hilton publicly backing ICO’s

Paris Hilton is another example of a high-profile hollywood celebrity who has publicly revealed their involvement in cryptocurrency.

This past September (2017), Paris Hilton posted on twitter that she was:

“looking forward to participating in the new” LydianCoin — a platform that wants to combine the blockchain with “targeted, AI driven digital marketing and advertising services.”—Paris Hilton (@ParisHilton) September 3, 2017

Since then, the post has been deleted. It was probably a shit token anyways, but we will give Paris Hilton an “E” for effort on that one.

SHIT TOKEN
SHIT TOKEN

The opportunity to educate Women on Cryptocurrency

There is a big opportunity to further educate women on cryptocurrency and the changing technology world around us. Some women are stepping up to the plate to advocate for cryptocurrency.

Many women are advocates for equality in the workforce and giving them the information to understand it will help them get up to speed and succeed in this industry.

More and more jobs are/will be opening up for people who have blockchain expertise or knowledge and it would be great to get some women filling these jobs. It’s a new enough field that women who join now can grow with the industry as it evolves.

EDUCATE A WOMAN

What can YOU do?

It’s simple, just share with them the basics of blockchain/crypto, the positive impact that it could have on the world, and how to get started and keep on top of all the changes in this exciting space.

 

Crypto isn’t all about investing your debt and making enough money to buy a lambo. It’s about changing many broken & outdated systems out there and making them more secure, safe, and efficient.

I encourage all of you to talk to the women in your life about cryptocurrencies and get them to join the crypto revolution.

Hold on for dear life.

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