VeChain is a blockchain project established in 2015. Its a pioneer of real-world blockchain applications that aims to connect blockchain technology to the real world by providing enterprises with blockchain-enabled solutions to handle supply chain management and other business processes. Read on for our guide on the VeChain Thor network and learn how to buy VET in a few simple steps
The blockchain developed by VeChain is known under the name “VeChainThor” blockchain. The VeChain Thor blockchain technology supports the enterprise’s traceability functions, data generation, logistics, payment methods, and other commercial activities. VeChain uses its technology to solve real business problems to create greater value. The VeChainThor blockchain runs the VeChain token (VET) and the VeThor token (VTHO).
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What Is VeChain
VeChain (VET) is a blockchain platform designed to support businesses with supply chain management functions. VeChain leverages blockchain technology to address supply chain problems and challenges faced by many business owners in a transaction process. The project aims to simplify, streamline, improve, and support these critical functions to make international commerce more transparent, fair, and efficient.
VeChain was initially introduced as a part of a Shanghai-based BaaS company (Blockchain-as-a-Service), BitSE. The goal of VeChain is to make a connection between blockchain technology and the real world and build a sustainable and scalable business blockchain ecosystem.
VeChain is divided into three sections: the real-time supply chain tech, cryptocurrency, and the VeChain platform. The developers of VeChain have also used distributed ledger technology (DLT) to streamline business information and data to support supply chains and business processes. The project offers VeChain ToolChain™, a low-code, blockchain SaaS platform. The project will essentially use smart chips to record important information onto the blockchain, which can be later tracked and used to improve processes (VeChain Whitepaper).
VeChain provides businesses with the opportunity to track a large amount of data. The VeChain blockchain is full of use cases and intends to be massively adopted by enterprises. The primary use case is to utilize blockchain technology to provide a complete view of supply chain data for all stakeholders and provide more transparency.
VeChain has been impacting several industries around the globe, such as food transportation and safety, automobile, logistics, healthcare, carbon emission, etc. The companies that have implemented VeChain technologies have improved their performance.
The VeChain network employs a dual token system and uses two tokens: VeChain token (VET) as a value layer and VeChain Thor Energy (VTHO) as a smart contract layer.
VET tokens are used as financial transaction tokens on the network and are available for investing by the general public.
VTHO tokens are used to pay for transactions (comparable to gas on the Ethereum network). VET ownership enables the owner to generate VTHO.
The VeChain Blockchain
The VeChainThor Blockchain is an enhanced version of Ethereum’s blockchain technology, forked on the Ethereum codebase and optimized for supply chain solutions. In addition, VechainThor Blockchain’ has the capabilities of executing smart contracts.
VeChainThor Blockchain uses a consensus algorithm called proof of authority (PoA). VeChainThor’s blocks are determined by masternodes holding a minimum threshold of VET. Running a VeChain masternode requires identity verification by the VeChain Foundation, a nonprofit organization that backs the VeChain ecosystem. VeChain currently has 101 authority masternodes that process and verify the transactions and are approved by the VeChain foundation.
Additionally, VeChain plans to scale to have 10 thousand transactions per second. This means VeChain could be considered more scalable than other crypto assets, i.e., Bitcoin only performs 4.6 transactions/second.
VeChain blockchain network uses cryptocurrency and smart contracts to streamline the information flow for complex supply chains. It uses the VeChain Token (VET) and VeChainThor Energy (VTHO) to transfer value properly and execute smart contracts. Using the VeChain smart contract features, users can track ownership and control of any number of goods and data. Businesses that require a verified chain of ownership through production, shipping, etc., could use VeChain for that purpose.
VeChain offers potential use cases in the food and pharmaceutical industries by making data transparent about a product being safely sourced and stored through various owners and facilities. VeChain is also useful for anti-counterfeiting, digital vehicle passports, or any open financial transaction.
VeChainThor can also support new currencies and other smart contracts. Currencies on this blockchain follow the VIP180 standard, developed uniquely for VeChain, similar to ERC-20 tokens on the Ethereum blockchain.
VeChain Thor blockchain’s features, such as multi-party payment, multi-task transaction, controllable transaction lifecycle, and transaction dependency, make the development more user-friendly for enterprise adoption.
How Does VeChain Work
The VeChain network functions through a dual token system. VeChain Token (VET token) is used to hold value across the VeChain network. While VeChain Thor Energy (VTHO) is used to power the smart contract transactions.
Below, we’ll provide you with a step-by-step guide on how to purchase the VET token. You can also find out how to invest in VeChainThor Energy (VTHO) here.
How to Buy VeChain
To purchase VET tokens, you need to create an account at one of the popular cryptocurrency exchanges supporting VeChain VET. Follow our step-by-step guide below to get started:
- Open an Online Cryptocurrency Exchange Account
You can trade VET on several cryptocurrency exchanges. You’ll have to compare them to choose the one that supports VeChain coins and has the features you want, such as low transaction fees, an easy-to-use platform, and 24-hour customer support. Also, consider if the cryptocurrency exchange allows you to buy VeChain with fiat currency using your preferred payment methods, such as a credit or debit card or a bank transfer.
When choosing a trading platform, always keep the safety of your investment in mind. Make sure it’s reputable, regulated, and secure.
After you’ve decided on a reliable exchange, the next step is to open a trading account to buy or sell VET. The requirements differ depending on the platform you pick. Personal information such as your name, contact number, email address, home address, social security number, and a copy of your driver’s license, passport, or government-issued ID will be required in most transactions. You must provide this information to be authenticated and start trading.
- Fund Your Account
After verifying your account, you must deposit funds for buying VET coins and other cryptocurrencies. To buy VET, you can use a credit or debit card, bank account, or crypto from a cryptocurrency wallet. The payment method you use will be determined by the platform, location, and preferences.
- Buy a Wallet
Buying a third-party wallet is an optional step, but it’ll help keep your digital assets as securely as possible. You should pick a wallet based on how many VeChain coins you have and what you want to do with it. We distinguish between a Software Wallet (Hot Wallet) and a Hardware Wallet (Cold Wallet). Hardware wallets or cold wallets, like Trezor or Ledger, are the most reliable options, as they come with safe offline storage and backup features. These are more suitable for experienced users who own large amounts of VET tokens. Software wallets are user-friendly and free to use. They store your keys online and are therefore less secure than hardware wallets, but their ease of use makes them ideal for newbies with a few tokens.
- Make Your Purchase
You must first place a buy VET order with the broker and wait for a response. You can place many types of orders, just as in stock trading. Below are the two most common orders:
Market orders: A market order tells your broker that you want to purchase VET immediately at the current market rate. Market orders don’t provide you with much control over the price you spend per coin, and you may wind up paying a rate that differs from the one displayed on the exchange.
Limit orders: Limit orders indicate that you want to buy VET at or below a specific price point. Your broker will ask you the number of coins you wish to acquire and the maximum price you’re ready to pay for each once you’ve placed an order. The coins will only appear in your wallet if your broker fulfills your order at or below your requested pricing. The broker may cancel your order at the end of the day if the price increases over your limit.
If you’re planning to keep your newly purchased coins for an extended period, we highly recommend securely storing them in a hardware wallet.
- Download a Crypto Portfolio Tracker
The crypto market is volatile, and if you hold multiple assets, managing your portfolio could get tricky. Utilizing a portfolio tracker will help you keep track of all your crypto investments from one place at all times. CoinStats offers one of the best crypto portfolio trackers in the market; you can find more information here. You can also Buy VET on CoinStats using the Swap feature from the Coin Page.
VeChain Trading Platforms
The top cryptocurrency exchanges for trading in VeChain stock are listed below:
Binance is a great platform to purchase VeChain. It’s one of the most popular crypto exchanges and supports over 600 coins. Compared to competitors, Binance offers lower fees and increased liquidity, which helps you control your investments in a volatile market.
Binance is available for investors in Australia, Canada, Singapore, the UK, etc.
KuCoin is another popular and secure platform that supports the VeChain tokens. It has competitive trading fees and is often the first to offer new tokens.
KuCoin provides a simple-to-use interface and supports over 300 tokens, including VeChain. You can use KuCoin if you reside in USA or Canada.
Coinbase is the second-largest cryptocurrency exchange globally by volume and the perfect choice for beginners, thanks to its user-friendly website.
Coinbase is available in 100+ countries and supports hundreds of brand-new and popular assets. It offers an easy-to-use interface with innovative features that will simplify buying VeChain coins.
Best Vechain Wallet Options
The best VeChain wallets you can use include: Ledger Nano S – Hardware wallet, MyEtherWallet – Web wallet, Eidoo – For mobile and desktops, and the VeChain Thor Wallet – Best for Andriod and iOS. These are highly reliable and secure VeChain wallets that store a wide range of tokens.
Buying VeChain is no different than buying any other crypto asset. The VeChain price is volatile and is dependent on the interaction between demand and supply components of a market and broader market factors. You can check the current VeChain price on the CoinStats price tracker.
VeChain is a blockchain-based platform with a goal to create transparency, traceability, and improved blockchain functionalities for real-world businesses. It incorporates blockchain technology into the ‘Internet of Things’ (IoT) to improve the supply chain process for enterprises. VeChain lets users build DApps that solve real-world problems.
VeChain use cases include industries such as logistics, food chain service, tourism, health, food safety, etc. The VeChain token (VET) is the primary token that runs all the operations on the platform.
If you’re interested in investing in VeChain VET, we hope this article has guided you on “how to buy VeChain.”
This content should not be interpreted as investment advice. Cryptocurrency is a volatile market, do your independent research and only invest what you can afford to lose. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs.