A beginner’s guide to buying, selling and trading VeChain (VET) in Australia.
VeChain is a Chinese cryptocurrency that was developed in 2015. This blockchain platform is designed to enhance and revolutionise 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 and sell 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 AUD 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?
As an ERC20 token, VeChain can be stored on any Ethereum-friendly wallet that supports these types of tokens. For example, you could use MyEtherWallet or hardware wallets such as the Ledger Nano S or TREZOR.
How VeChain works
Established in Singapore in 2015, 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. Established in Singapore in July 2017, this non-profit entity is in charge of constructing the network and conducting technological research and development.
It has also developed partnerships with a host of major companies around the world, including big names like Coca-Cola, IBM, HSBC, Alibaba, Oracle, Tencent and Cisco.
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.
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 token (VET) is described by the company as the “blood” in the VeChain ecosystem, and it carries the value transfer function of the blockchain network and the various commercial activities running on it. Owning VET gives you the right to use the public infrastructure of VeChain, as each token acts as a unit of exchange. All transactions and services on the VeChain platform depend on VET, and the token can also be used to purchase products on the platform.
Demand for the VeChain token is, therefore, a crucial factor that could increase 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 has established partnerships with a long list of international businesses, none more prominent than PricewaterhouseCoopers. VeChain was selected to become a part of PwC’s incubation programme in May 2017, providing it with access to markets in Hong Kong and South East Asia.
A cryptocurrency’s perceived utility can also have a big impact on its price. VeChain’s existing commercial partnerships, including a recent agreement with certification service provider DNV GL, combined with its potential supply chain management applications across a number of industries could also encourage future price increases.
At the same time, holding any cryptocurrency comes with a level of risk attached, so you’ll need to do your due diligence before you consider buying VET. At the time of writing, one issue worth noting is the extensive rebranding process that will see VEN tokens converted to VeChain Thor (VET). You’ll need to research the technological developments associated with VeChain Thor, as well as any associated problems or issues, before deciding whether to purchase VET tokens.