A Comprehensive Guide For Crypto Investors Considering VeChain Altcoin Trio: VET, VTHO, or VeUSD
VeChain (VET) is one of the first blockchains focused on the improvement of the supply chain and product lifecycle management for enterprise-level clients. To accomplish this goal, the token uses distributed ledger technology (DLT) and access to a variety of new functionalities for businesses.
If you’re interested in learning more about VET and adding this token to your portfolio, our beginner’s guide will simplify your investing.
To help determine for yourself if VeChain, VechainThor, or VeUSD should be a part of your cryptocurrency portfolio, look through the following information. For complete due diligence before investing, you should also gather research from additional sources. By looking over as much information as you can find – both good and bad – can you make a good decision for yourself.
What is VeChain?
VeChain is an increment of value within the VeChain blockchain. Like other blockchains, VET can trigger smart contracts and transfer value across the blockchain. Since the developers had no desire to establish a fully decentralized platform, the integration of the best features from both the decentralized finance (DeFi) and centralized finance (CeFi) sectors provides a balanced platform. This allows users transparent information flow, high-speed value transfers, and efficient collaboration. It’s no wonder that numerous household name companies like BMW, Walmart China, PriceWaterhouseCoopers, Renault and over 250 more clients are using the VeChain solution in their businesses.
Brief History of VET
Introduced in 2015, VeChain’s token began on the Etherium blockchain. After showcasing their concept and gathering funds, VET developed its own native blockchain, where it now operates. Developers can now provide features geared toward specific needs in the business environment. As a pioneer in integration pf the Internet of Things (“IoT”) and Distributed Ledger Technologies (“DLT”), the VET token is one of several blockchain projects built with billions of smart devices in mind.
Dual Token Strategy (Plus A Stablecoin) – VET & VTHO & VeUSD
Regarding governance, VeChain borrowed the dual-token strategy from Etherium. This effective form of governance also provides a predictable economic model. By launching a stablecoin in March 2022, VeChain opened up endless application scenarios for the world’s leading enterprise-grade smart contract platform.
VeChain is currently the 41st largest cryptocurrency project when measured by total market capitalization. It has a daily trading volume of about $300,000,000 and a total market capitalization of over $2.9 billion.
How to Buy VET
To buy any cryptocurrency, including VeChain or VechainThor, you must open an online account.
A cryptobroker provides access to a trading platform used to buy and sell cryptocurrencies. After you open an account, you can buy crypto, as long as the broker handles the altcoin you want to buy. The cryptobroker makes money by charging you a small commission for your transactions. If it’s a “no commission” broker, that means they are making the difference between the “sell” and the “buy” price, also called the “spread.” Either way, you’ll just need to make sure the broker you choose handles the VeChain token (VET) before you open your account.
Though compared to Bitcoin and Etherium, VET isn’t the most popular cryptocurrency on the market, there are still a number exchanges you can use to sell, buy, and convert VET. When you’re comparing crypto brokers, some other factors you’ll want to take into consideration may include:
How To Choose A Crypto Broker
Access to other cryptocurrencies:
If the only crypto you’re interested in trading is VET, be sure that the brokers you’re considering opening an account with support VET (see list below). However, if you desire to create a more diversified crypto portfolio, you’ll want to create a list of cryptos you’re interested in investing in. Then you can and cross-reference your list with each broker’s list of supported tokens and coins. Some brokerages allow investment not only in crypto but other investments like stocks and gold for example.
Commissions and fees: Almost every crypto broker will charge you a fee or commission when buying and selling crypto using its platform. These fees can quickly cut into your profits if you’re a frequent investor. Be sure that you understand both your broker’s fee schedule and any additional account maintenance fees they charge so you can most accurately calculate your profits.
Local availability: Not every broker can provide cryptocurrency support in every state and country. Be sure to check the broker’s availability and local restrictions before opening an account. See “Where To Buy VET” below.
Buy a wallet (optional)
If you plan on holding your VET for more than a week or so without actively trading it, you’ll typically want to store your investment in an off-exchange wallet. An off-exchange wallet keeps your crypto protected if your exchange is hacked or otherwise compromised. Some exchanges will even freeze your account if they can’t verify your social security number, so make sure your information is accurate when you set up your account. With a wallet, you can safeguard your crypto from seizure or hacking.
Private crypto wallets come in two types: 1) Hardware wallets are physical devices that store your tokens and coins in the wallet and offline. 2) Software wallets keep your crypto holdings online through the software application. Between the two, superior protection is afforded by the hardware wallets. So even though a hardware crypto wallet is more expensive up front, in the long run it could save your bacon by keeping your crypto safe and secure in cold storage.
Make your purchase
When you’ve fully opened your brokerage account and decided how to store your tokens, you can place an order to buy VET. Explore a few of our favorite wallet choices for altcoin tokens like VET below.
First, open your broker’s trading platform. Then, you’ll choose the type of order you’d like to use to buy VET. Take a look at the current price of VET and decide if you believe that the price will move up or down. Then, select the order type you’re going to use. Most brokers will provide you with many different types of orders, but the types used most frequently are:
Market orders: This type of order will attempt to fill at the current market price of the coin, stock, or other investment you want to buy. It provides less control over the amount you pay per token, share, or unit, but you have a better chance that your order will be filled quickly if there is enough volume. If the investment is thinly traded (i.e. not a lot of daily volume), it could be more difficult to fill your trade.
Limit orders: A limit order tells the trading platform that you want to buy an asset at a specific price or lower. When you enter a limit order, you enter the price you’re willing to pay per token, share, or unit. When the broker can buy each token at or below your price, the order executes. If not, the order remains unfilled. Most brokers allow you to state the period of time you want to keep the order open if it is not filled. A “day order” expires at the end of the trading day it is entered. You could also keep the order open indefinitely or until you cancel the order. This can be a good way to catch a lower price without having to check and recheck the market.
Where to Buy VET
Unfortunately, VeChain is not among the most readily available altcoins for trading purposes. For USA residents, Uphold (84 cryptos plus some stocks & precious metals), Gate.io (1,300 cryptocurrencies), and KuCoin (300 different tokens) currently support VET.
Another offshore-based exchange that currently accepts USA residents is BitYard, which supports over 100 cryptocurrencies. BitYard is Singapore-based. If you’re in another country besides the USA, you have to check with the platform you’re considering – including BitYard – to determine if they support VET trading or not from your location.
Our top choice for USA residents is Uphold, as it has a high level of credibility in the industry. You can trade cryptos, precious metals, some U.S. equities (only for non-USA residents though), currencies, and more. All on one seamless ledger. It lets you convert your cryptocurrency to any other digital asset supported by the platform. For example, you could trade Bitcoin for gold. Uphold does not charge commissions, but takes a spread on each transaction. The Uphold spread typically ranges from 0.8% to 2% depending on the position you are trading. The precious metals spread is typically 3% over the bid/ask of the supplier. U.S. Equities usually have a 1% spread, while the spread on thinly-traded altcoins can run higher, even over 3%.
VET is listed as a “Tier 4” asset on Uphold, which means you can buy, sell, and trade the altcoin on the platform, but you cannot deposit or withdraw VET directly. Uphold is also rolling out staking, where you can earn additional crypto through your participation in the program. Overall, Uphold has a well-rounded and easy-to-use platform for getting started. The biggest negative is not being able to withdraw VET to a hardware wallet.
Best Hardware Wallet: Ledger Nano X
As the gold standard for cryptocurrency cold storage, investors using the Ledger Nano X have a private set of keys. Bitcoin, all ERC-20 tokens, and many additional assets may be stored safely offline. The private Ledger key is safely stored in a secure chip, and investors can assess and access the investments from any location.
The Ledger Live app can also connect with Ledger Nano X. This allows you to send and receive coins and tokens from other users on the network. Up to 100 decentralized applications can be installed to your Ledger Nano X device. This is an excellent feature for anybody interested in diving into decentralized finance a little deeper.
If the Ledger Nano X is out of your price range, the Ledger Nano S is another good choice that will save a few bucks.
Free Software Wallet From the VeChain Foundation
The VeChain Foundation developed a secure mobile wallet for the iOS and Android mobile platforms, available for free download from Google Play or the App Store. The VeChainThor Wallet supports VET, VTHO and various VIP180 tokens and features a node management tool and built-in dApp browser. These wallets also integrate and interface with the Ledger Nano X.
Best Overall Non-VET Software Wallet: Coinbase Wallet
Coinbase is one of the internet’s largest cryptocurrency marketplaces — and its newly introduced Coinbase Wallet makes it easier to manage your investments on the go. The Coinbase Wallet is a software program that provides you with complete support for Bitcoin and any ERC-20 project, except that VeChain is not currently on the Coinbase app or the Coinbase Wallet. Keep an eye out for this, as VeChain is under consideration by Coinbase to be added in the near future.
Have you ever wished to split bills between your friends using cryptocurrency? The Coinbase Wallet allows you to send crypto to other users without memorizing a long wallet address — enter a name and transfer crypto in just a few minutes.
Bonus: BitBox02 by Shift Crypto
Even though it’s more expensive than the Ledger Nano X, you can also protect your coins with the latest Swiss-made hardware wallet: BitBox02. The BitBox02 features a dual-chip design with a secure chip. Security researchers have independently audited the source code, which is fully open source. While the Ledger Nano X supports more coins at 5,500+, the BitBox02 supports a respectable 1,500+ coins currently.
The BitBoxApp is at the center of the BitBox ecosystem. It’s an all-in-1 solution to manage your coins securely. It features easy backup and restore with a microSD card and supports Bitcoin, Ethereum, Litecoin, Chainlink, BAT, and more than 1,500 other cryptocurrencies.
Trade or Sell Your Cryptocurrency
When you see your tokens in your exchange wallet, your next step is to decide how you want to earn a return on your investment. These are primary strategies you can use to make a return on your AMP investment:
Long-term holding and selling: If you believe that the price of VET will increase over months or years, you may want to take a long-term approach and hold your investment. Long-term holders typically store their tokens in an off-exchange wallet for the highest possible level of safety.
Active trading: Traders can also capitalize on short-term price movements by strategically buying and selling VET on their exchange of choice. When you decide to take profits, you can convert your AMP to a stablecoin like Tether or directly back to a fiat currency, depending on your broker.
No matter which strategy you choose to take, you’ll want to monitor the price of VET, VeTH, & VeUSD and how the prices are regularly changing.
The Future of VET
Though VET’s blockchain network is not one of the most popular cryptocurrency projects currently trading on major exchanges, it still retains a positive investor sentiment for the future. If you’re thinking about investing in VET, you may still want to diversify your portfolio with other types of blockchain token projects, and even consider higher-risk choices like gaming projects for your speculation money.
Disclaimer: Although the material contained in this publication was prepared based on information from public and private sources that VeChainZone.com believes to be reliable, no representation, warranty, or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and VeChainZone.com expressly disclaims any liability for the accuracy and completeness of the information contained in this opinion piece publication.