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How to buy VeChain and how it works
A beginner’s guide to buying and trading VeChain (VET) in Hong Kong
VeChain is a cryptocurrency that was founded in 2015. This blockchain platform is intended to help enhance and revolutionize supply chain management by making it easy to track the entire lifecycle of a product, allowing retailers and consumers to quickly verify the quality and authenticity of just about anything they buy.
For more information on how to buy VeChain Ethereum tokens (VET) and how VeChain works, read on.
Where to buy VeChain
VET is available on a number of popular cryptocurrency exchanges, including:
A step-by-step guide to buying VeChain
Want to buy VeChain? Follow these simple steps:
Step 1. Create an account on a cryptocurrency exchange that allows you to trade VET
Depending on the exchange you choose, VET can be traded with US dollars (USD), bitcoin (BTC) or Ethereum (ETH). You’ll need to provide your email address and create a password to register for an account, while it’s also recommended that you set up two-factor authorisation to provide an extra level of security.
Step 2. Deposit funds into your account
Many cryptocurrency exchanges only allow trading between cryptocurrencies and don’t allow the direct deposit of fiat currency, such as SGD or USD, so you’ll usually need to own or buy BTC or ETH first.
The exact process for depositing funds into your account varies depending on the exchange you choose. For example, on Binance you need to click on “Funds” and then “Deposit” in the menu at the top right of the screen. On Kucoin you can select “Assets” in the top menu, select your chosen currency (for example ETH) and click “Deposit”.
Step 3. Buying VET
The final step is to trade your chosen currency for VET on the exchange. Once again, the exact process you need to follow may vary slightly depending on the exchange you choose.
For example, on Binance you’ll need to click on your chosen trading pair (such as VET/BTC) and enter the number of VET you want to buy, and then choose the best available market price or your own limit before clicking “Buy VET”.
Which wallets can I use to hold VeChain?
How VeChain works
VeChain is a blockchain product management platform designed to create a more transparent market and give people reliable access to information about the products they buy and sell. VeChain aims to be a secure and easy way for product manufacturers to collect, store and share product details with retailers and consumers.
VeChain works by giving each product a unique ID and VeChain smart chip tracker, which is essentially an NFC chip, RFID tracker or QR code that tracks that particular product. This is like a unique fingerprint you can attach to almost anything.
The platform focuses on four main areas:
- Anti-counterfeiting. Ensuring the quality and legitimacy of products, and being able to prove it.
- Supply chain management. Tracking products through the entire supply chain.
- Asset management. Easily managing a wide range of assets around the world, from a central location.
- Client and customer experiences. Having more information for buyers, being able to offer more up-to-date information and otherwise better serving customers.
VeChain is also supported by the VeChain Foundation. This non-profit entity is in charge of constructing the network and conducting technological research and development.
It also claims to have developed partnerships with a host of major companies around the world.
Real world applications for VeChain
Picture this: one day in the not-too-distant future, you could be able to use your smartphone’s NFC technology to scan any product in a store and see its entire history, including everything from who, when, where and how it was made to how it got to be on the shelf in front of you. This is the sort of future that VeChain is working towards.
It’s already seen live use, letting shoppers in China check on the origin of food in supermarkets.
In the real world, this technology has potential applications across a wide range of industries, including luxury goods, the automotive sector, agriculture, logistics and retail. For example, in the retail sector, blockchain could be used to prevent the influx of fake designer clothes and accessories.
As another example, let’s think about a bottle of wine. By scanning the bottle’s VeChain smart chip, you can instantly see where it was made and when, and how it made its way onto the shelf in front of you.
At the other end of the exchange, the wine manufacturer can track the bottle right the way through the supply chain, allowing them to identify any weak points in the chain, improve efficiency and more quickly respond to disruptions.
What to consider when buying VeChain
The VeChain system consists of two different cryptocurrencies; VeChain (VET) and VeChain Thor (VTHO). The former is used to secure the network itself, while the latter is used as gas to power applications on the network. VTHO is earned by users who stake VET tokens. All transactions and services on the VeChain platform depend on these tokens.
Demand for the VeChain token is, therefore, a crucial factor that could affect the value of VET in the future. VeChain’s commercial partnerships and range of real-world applications should also be taken into account when deciding whether to buy VET. For example, VeChain says it has established partnerships with a long list of international businesses.
A cryptocurrency’s perceived utility can also have a big impact on its price. VeChain’s existing commercial partnerships, combined with its potential supply chain management applications across a number of industries could also encourage future price changes.
Keep in mind that VET isn’t the only supply chain token – competitors such as WaltonChain, Wabi and OriginTrail may each challenge VeChain’s market share.
Holding any cryptocurrency comes with a level of risk attached, so you’ll need to do your due diligence before you consider buying VET. You’ll need to research the technological developments associated with VeChain, as well as any associated problems or issues, before deciding whether to purchase VET tokens.
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