Your Crypto Research Toolkit: Tips for Safe & Savvy Investing

The following is a blog post by Kyle, one of the founding engineers at Saferoot and a software engineer previously at Dapper Labs.

Welcome to the dynamic realm of cryptocurrency – an environment rich in potential yet not without its pitfalls. Here, where appearances can be deceptive, your most crucial asset isn't just eagerness but informed skepticism. Prepare yourself. It's time to sharpen your analytical skills as we delve into the essential practice of DYOR (Doing Your Own Research) – the intelligent approach.

The Rigorous Reality of Crypto Investigation

In the digital era's version of the Wild West, where aspirations to be the next big name in crypto abound, the distinction between innovative projects and elaborate schemes is often subtle. Your task, should you decide to take it on, is to navigate through the noise, avoid the traps, and identify the authentic opportunities that lie beneath the surface.

Your Crypto Detective Toolkit Unveiled

1. GitHub: Your Code Connoisseur’s Haven:Note: Don't worry if you're not a coder – you can still navigate GitHub effectively for crypto research with these straightforward tips.
2. Repository Richness: How robust is the project's GitHub presence? Check the number of repositories and the age of the main organization. A project rich in repositories and with a history suggests substance.
3. Contributor Credibility: Look at the contributors. Are they seasoned veterans with a history of reputable work, or mysterious figures that popped up overnight?
4. Commit Consistency: Frequency and quality of commits and pull requests are telling. Are there regular updates? What's the volume of code changes (measured in Lines of Code or LoC) each week? This speaks volumes about the project's vitality and dedication.
5. Forta: Your Scam Detector:
6. Forta serves as your trusty sentinel, assessing the scam potential of specific addresses. It uses machine learning and historical data to assign a scam score based on associations with previous scamming activities. A low scam score indicates fewer red flags.
7. LinkedIn/Twitter: The Founders’ Forensic File:
8. Assess the founders' histories. Do they have prior experience leading successful ventures? How did their past projects fare? Are they actively engaging in community discussions, spaces, and live calls? Verify their credentials across platforms. Ensure their skill set aligns with the project’s demands.
9. Saferoot: Your Cybersecurity Shield:
10. Saferoot acts as a proactive non-custodial protector against malicious transactions, phishing attempts, and other digital dangers. It’s a crucial line of defense, particularly if you fall victim to SIM swaps or other security breaches.
11. Disclaimer: It's important to note that I am a part of the team at Staging Labs, the creators of Saferoot. While we stand by the efficacy of Saferoot, we believe in transparency and the importance of informing our readers of our affiliation with the product. This connection, however, does not sway our commitment to providing unbiased, critical information and tools for the crypto community.
12. Website Wisdom: Deciphering the Digital Front:
13. Delve into the website for concrete company details. Where is the company based? Can you confirm this via a business registry? Match director names with their LinkedIn profiles. Investigate investors and primary shareholders. A project backed by reputable entities typically holds more credibility.
14. Community Dynamics: Discord and Telegram Tell-All:
15. Immerse yourself in the project's community channels. Are discussions predominantly token-centric, or do they revolve around product development and market validation? Watch for red flags like excessive price talk, especially if it's driven by admins or moderators.
16. Follower Forensics: Unmasking Social Media Illusions:
17. Conduct an audit of the project's social media followers. Tools and websites can assist in discerning real from fake followers. Manually, evaluate the follower-to-following ratio, engagement levels relative to follower count, and the quality of interactions. High engagement with a low follower-to-following ratio often indicates organic growth. Pay attention to their collaborations: are they engaging with reputable partners?

Best Practices for Crypto Investigations

• Diversify Your Sources: Gather insights from a broad spectrum of resources to construct a well-rounded perspective.
• Stay Informed but Unswayed: The crypto landscape evolves rapidly. Keep abreast of trends but maintain a discerning mindset.
• Engage and Debate: Use community forums and discussions as learning grounds. Engage, but approach every piece of information with a critical eye.
• Simplify the Complex: Grasp the fundamentals of blockchain and crypto technology. Understanding the basics can be a game-changer in decision-making.

Exciting Development: Your Research, Simplified

As we navigate the complex labyrinth of cryptocurrency, imagine having a comprehensive hub that consolidates all these crucial insights in one accessible, user-friendly interface. We're in the process of creating such a resource, aimed at streamlining and enhancing your DYOR experience. If this piques your interest, we'd love to hear from you. Feel free to subscribe to our email updates, reach out to us on Discord, or share your thoughts in the comments section below. Your feedback is the catalyst that will bring this idea to life!

Conclusion

In the dynamic and sometimes complex landscape of cryptocurrency, your most vital asset is a discerning, questioning mind. Approach this journey with keen awareness and a deep appreciation for the importance of comprehensive research. Keep in mind, DYOR (Doing Your Own Research) is not just a catchy phrase; it's your shield against potential pitfalls in this digital world. Arm yourself with knowledge, balance enthusiasm with prudence, and embark on the pursuit of clarity in the realm of crypto. Wishing you insightful discoveries in your crypto exploration journey.

‍

‍