According to Miles Deutscher, step #4 in successful crypto trading is conducting thorough due diligence, which is critical for distinguishing profitable projects from underperformers in the cryptocurrency market (source: @milesdeutscher, Twitter, May 20, 2025). Deutscher provides a set of concrete prompts to help traders evaluate project fundamentals, team transparency, tokenomics, community engagement, and security protocols. These actionable due diligence guidelines are designed to minimize risk and maximize returns for active traders, emphasizing that no compromises should be made during the research process. Applying these prompts can help traders identify solid long-term opportunities and avoid common pitfalls in a volatile crypto landscape.

According to AltcoinGordon, buying meme coins without any research can expose traders to high volatility and unpredictable losses, as illustrated by his recent social media post highlighting the importance of due diligence before entering meme coin markets (source: @AltcoinGordon, Twitter, May 16, 2025). For crypto traders, a lack of research significantly increases the risk of investing in projects with low liquidity, poor fundamentals, or potential scams, which can lead to rapid capital losses and missed opportunities in trending sectors such as meme coins. Performing thorough analysis and tracking social sentiment are essential strategies for navigating meme coin trading and protecting investment capital.