Investing without researching: The biggest risk in cryptocurrencies

How many times have you seen someone invest in a cryptocurrency just because an influencer recommended it? Unfortunately, it is more common than it seems. That’s why there is the practice known as DYOR (Do Your Own Research), which in Spanish means “do your own research,” and has become a fundamental principle for anyone who wants to participate in the world of cryptocurrencies without losing their money.

The reality of the crypto ecosystem: coordinated manipulation and self-interested promotion

The cryptocurrency ecosystem is especially vulnerable to misinformation. Self-serving promotion —known as “shilling”— is endemic in this space. People who already own certain monedas constantly post about them hoping to influence the price. The problem is that it is extremely difficult to distinguish between a genuine recommendation and a disguised promotion.

Furthermore, social media platforms like Twitter, Reddit, and others are fertile ground for coordinated manipulation attacks. Malicious users create multiple fake accounts that artificially amplify certain messages, making them seem like organic trends when in reality they are orchestrated. Although networks attempt to detect these tactics, many fraudulent accounts manage to go unnoticed.

Why DYOR is Your Best Defense

Doing your own research is not a luxury, it is a necessity. Before transferring money to any crypto project, you must:

Verify the information independently. Do not rely solely on what you read on social media. Consult multiple sources, including the project's technical documents (whitepaper), real developers, and objective analyses.

Analyze the project beyond the price. What problem does it solve? Who is developing it? What technical support does it have? These questions are as important as knowing if the coin “is going to the moon”.

Maintain healthy skepticism. It is especially important when someone pressures you to act quickly or when “everyone is talking” about something. That artificial urgency is often an indicator of manipulation.

The difference between information and promotion

An experienced trader who shares their market analysis does so with DYOR as a disclaimer. This means: “I show you my analysis, but you must research and validate before investing”. The intent is educational, not manipulative.

On the contrary, someone who insists that “you must buy now” without allowing you time to research is looking for your money, not your benefit.

Your action plan

The reality is simple: in cryptocurrencies there are no shortcuts. The people who have managed to accumulate wealth in this space generally share one characteristic: they researched thoroughly before investing. Those who did not practice DYOR frequently ended up losing significant capital.

Your responsibility as an investor is to take control of your financial decisions. This means taking the time to understand what you are buying, why you are buying it, and what risks it entails. DYOR is not just advice, it is the foundation of a responsible investment strategy in cryptocurrencies.