Designed to enhance supply chain management, VeChain is a blockchain-enabled platform with a lot of impressive partnerships and a promising future.
Compare where to buy VeChain, and open an account
Read on to find out about VeChain and how it works or jump ahead to our step-by-step buyers guide if you’re ready to buy VeChain.
What is VeChain?
VeChain was initially released as a prototype on the Ethereum blockchain in 2015. An ICO launched the VEN token in August 2017, followed by the establishment of the VeChain Foundation a few months later. In June 2018, the platform moved to its own blockchain.
In the words of its own website, VeChain ‘strives to build a trust-free and distributed business ecosystem, which is self-circulating and scalable’. In practice, VeChain has been utilised in supply chain management, assigning trackers to products and allowing businesses to track, verify and authenticate goods as they move through the supply chain.
The scope of VeChain’s ‘business ecosystem’ has evolved since a rebrand to VeChain Thor in 2018, at which point it was moved to its own Thor blockchain and a new native token, VET, was launched.
How does VeChain work?
VeChain Thor is being positioned as a blockchain-powered business infrastructure solution. As such, it’s effectively concerned with the management of data and the provision of a trust-free business ecosystem that enables enhanced product authentication. This is achieved by combining blockchain technology – to guarantee data accuracy using an immutable ledger – with NFC chips, RFID trackers or QR codes to track goods.
Since the rebrand to VeChain Thor, the platform’s scope has broadened beyond supply chain logistics to offer more general dApp solutions. It now has a dual-token system, complementing VeChain Tokens (VET) with VeThor Tokens (VTHO), which are generated by holding VET and used to pay for transactions on the blockchain. The introduction of a second token is designed to keep transaction costs stable.
How to buy VeChain online – step-by-step guide
Step 1. Get a suitable wallet
VeChain has shifted from ERC-20 tokens to native VET and VTHO tokens, which means you’ll need to find a VeChain-compatible wallet. We always recommend finding a good wallet before you go and buy VeChain. Here are a few options:
- Ledger Nano X: One of the safest options for storing your VET tokens is the Nano X hardware wallet from Ledger. It’s not the cheapest wallet out there, but if you’re serious about security, it’s one of the best.
- VeChain Thor Wallet: The official VeChain Thor wallet is available for both iOS and Windows. It offers robust security and management for both VET and VTHO tokens and links Node participants to the network.
Step 2. Find an exchange to buy VeChain
The next step to securing VET funds is to find an exchange where you can buy VeChain. There are plenty to choose from, so to narrow your search and save you some time, we’ve picked out a couple of our favourite places to buy VET:
- Binance: Binance is the world’s biggest crypto exchange. But, while it offers a huge crypto marketplace with competitive fees, you won’t be able to buy VeChain using Fiat currency, so you’ll have to invest in Bitcoin or Ethereum in order to exchange it for VET.
- KuCoin: KuCoin has five-million worldwide users and is one of the more advanced trading platforms out there, but don’t let that put you off if you’re new to the game as it’s simple to use, safe and can be accessed via a desktop computer or via Android and iOS phones.
Step 3. Withdraw your VeChain
It’s a good idea to withdraw your VET funds from the exchange as soon as you’ve acquired them – it’s much safer to keep cryptocurrencies in a digital wallet than on an exchange.
How to trade VeChain – step-by-step guide
If you’re only interested in trading rather than buying VeChain, you don’t really need to set up a wallet – you’ll simply be predicting whether the price of VET will go up or down.
Step 1. Find a broker to trade VET
Finding a broker is easy if you know where to find them and what you’re after. However, it’s well worth having a look around the available crypto brokers and doing some research before you commit to one as they all offer different perks and levels of support.
Step 2. Deposit money
Once you’ve chosen a broker, you’ll need to put some cash down as a deposit. The process is fairly straightforward and minimum deposit requirements are usually pretty low, so you can start with a relatively small bankroll.
Step 3. Decide how you’d like to trade
There are two main ways to trade cryptocurrencies: spread betting or CFDs (contracts for difference). While there are some differences, both methods require you to take a position on whether you think the price of your chosen cryptocurrency will rise or fall over a set period of time. If you’re just starting out, it might be worth doing some research on spreads and CFDs before you jump in.
Step 4. Start trading
Once you’ve put down a deposit, you’ll no doubt be raring to go, but we recommend you set up a demo account with your broker before you start trading for real. It’s easy to win and lose money very quickly when trading, so it makes sense to get a feel for the platform you’ve chosen as well as the ebb and flow of the cryptocurrency market.
In essence, all you need to do is take a position on whether the price of your cryptocurrency will increase or decrease. If you think it will increase take a long position (buy) and if you think it will decrease, take a short position (sell).
You may opt to take advantage of leveraged betting, which is a feature of most trading platforms. Leverage enables you to put down a fraction of your trade’s total value as a type of deposit called a ‘margin’. However, this is a high-risk strategy, so it’s probably not for beginners. Experienced traders understand this and use stop loss orders to mitigate risk.
- Impressive list of partners, including BMW and Walmart, bodes well for business adoption
- Research partnership with Oxford University
- Supply chain industry is moving to blockchain and VeChain is well positioned
- Token holders aren’t guaranteed to reap the rewards of the company’s success
- Moving into dApp enterprise field pits VeChain Thor against Ethereum