Is It Worth Investing In VeChain?

Last Updated September 21st 2022

16 Min Read

While many businesses understand the potential benefits of cryptocurrencies, most do not know how to integrate them. This is where VeChain comes in.

Vechain helps businesses deploy blockchain technology solutions. It enables companies to deploy smart contracts on the public blockchain, manage their supply chain securely and enable transparency throughout the entire process. The increasing logistics industry has made it necessary for companies to develop effective solutions that are free from logistics-related problems. Today, most organizations do not have a single system that will connect all their business information.

However, with the help of VeChain blockchain solutions, this is possible for most businesses that are willing to embrace blockchain technology.

So, clearly, VeChain has a lot to offer to the business community in terms of logistics and data management. But how is it from the perspective of a crypto investor? Is it a good investment?

In this guide, we will look at what exactly VeChain is, how it works and whether it is a good investment or not.

Contents:

What Is VeChain?
How Does VeChain Work?
VeChain Price History
VeChain (VET) Price Prediction for 2022 And 2023
How To Invest In VeChain
Is VeChain (VET) A Good Investment?
Conclusion: So, Should I Buy VET?

What Is VeChain?

VeChain is a supply chain management platform that incorporates blockchain technology. Through its use of smart chips and RFID, it can help companies in a variety of industries achieve all their business goals in offline and online commerce.

It also enables users to track products from source to end-user. In other words, the VeChain network tracks the movement of products from manufacturing until they get to a consumer.

It also helps companies maintain quality control and prevent counterfeit products.

VeChain started in 2015 as a supply management solution, catering specifically to luxury goods companies that were looking for a more efficient way to track their goods while maintaining high standards for quality control. Through its unique business model, VeChain solves many of the problems that were limiting growth and efficiency in China's retail and luxury industries.

VeChain has a strong presence in China, with over 40 partners to date. However, it is also present across Europe and other markets such as Japan.

One of the unique features of VeChain is its ecosystem. The blockchain uses the VeChain token (VET) to enable smart contract transactions. It also creates another crypto token called VeThor (VTHO). VTHO is generated whenever a transaction is performed on the network, and it is used as energy that powers all the smart contracts.

VeChain has an internal governance system designed to create a fair environment for users, where they can make important decisions about the future of the blockchain. As more users join the network, VeChain will grow stronger and become even more efficient at reducing costs in various industries.

How Does VeChain Work?

VeChain is designed to provide high-quality solutions to meet specific needs in businesses that are looking to implement blockchain technology. It specializes in building blockchains for enterprise needs while also having the capacity to scale up for public chains that are more decentralized.

The VeChain token (VET) is used to power smart contracts on the network, while the VeThor (VTHO) is generated when smart contracts are performed. As explained above, VTHO can be used to power smart contracts, and it also serves as the gas that facilitates transactions.

As mentioned, VeChain focuses on supply chain and logistics. It has a range of solutions that can help companies handle supply chain-related issues. For instance, it offers smart chips and RFID tags to keep track of important data such as product IDs, batch numbers, etc. When products move from one place to another, these devices collect and transmit information to the VeChain blockchain so that stakeholders can keep track of them.

These RFID and smart chip devices help companies provide transparency and trust so they can avoid counterfeit products and maintain quality control. They also ensure simplicity and convenience for users, as they do not have to manually input data to the blockchain.

When it comes to supply chain management, VeChain creates a public ledger that contains all the product information that buyers or any other stakeholders need to know. If a business is using the services of a supplier, for instance, it can request information from VeChain at will and receive accurate results in real-time.

This makes it easier for companies looking to do business with each other to find the right partners who have not only high-quality products but a certain level of reputation, which is a critical part of any business.

Unlike most blockchains, VeChain relies on a Proof-of-Authority consensus mechanism. This is a type of consensus that relies on known or trusted validator nodes. Since it is based on a closed list of nodes, this system has been designed to work well with the supply chain industry. Besides offering a high level of performance and security, it also helps keep transaction costs low. As a private blockchain, VeChain does not have to depend on mining nodes for transactions to be approved.

Check Out: Is VeChain (VET) A Good Buy?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

VeChain Price History

We are going to try and help you understand whether Vechain is a good investment or not. To do that, it is important that we look at some technical analysis. The first thing you need to know is that the price of a cryptocurrency doesn't just depend on the project itself. It also depends on the market, and Vechain's case is no different.

You can see this in VeChain's price history.

VeChain has been around since 2015, which makes it one of the oldest cryptocurrencies. However, according to Yahoo! Finance, VET started trading in August 2017. However, most charts we have seen only show price data from August 2018.

The price around this time was about $0.014, and it did not see any big movements until July 2020. In September 2018, for example, VeChain reached an all-time high of around $0.01818 before starting a steep decline that brought its price down by more than 79% by the end of 2018.

VeChain also fell victim to the crypto crash that occurred in January 2018. However, it outperformed most cryptocurrencies during that period, and its price fell by just over 60% between January 6th and February 6th.

After the downtrend ended in December 2018, VeChain's price stabilized in 2019 at between $0.004 and $0.009, with some small fluctuations here and there. This is important because it shows how stable this cryptocurrency is in the long run. If it does not fall during a crash, for example, it will most likely stay at around the same price instead of going down significantly.

If you look at VeChain's market capitalization or its current dollar value, that too tells a similar story. After peaking in April 2021 at over $16 billion, VeChain's market cap has fallen by close to 90% over the past few months. It currently sits at around $1.6 billion, which means that it's still traded heavily despite its recent downtrend.

This shows you how stable this cryptocurrency is because people are still willing to invest in it even with heavy losses and no clear expectations of future gains.

VET attained its all-time high price of $0.2782 on April 17th 2021 but has since lost more than 90% of that value. The coin’s real growth started in 2021 during a market-wide bull run that saw most cryptos rise parabolically. The coin finished 2021 with a price of $0.0828.

In 2022 the price started dropping down and hit $0.44 in March, but by the end of the month the coin managed to climb back to $0.84. The following crypto market crash brought VET price to the low of $0.2. At the time of writing, VET was trading around $0.023.

So, if you are looking for an investment to make, currency strength is important because it determines how well VeChain is likely to perform in the long run. This is why it doesn't make sense for you not to invest in VeChain if you are looking for a solid cryptocurrency that will help you get good returns on your investment.

However, while the coin has remained fairly stable in the past few months, it is still unpredictable and could crash at the slightest hint of a bear market. Otherwise, if you believe in VeChain’s technology and want to be part of a potentially rewarding future, we will show you the different ways you can invest in this coin later in the guide.

Before that, let’s quickly go through some predictions to get an idea of where the coin might be headed in the next two years or so.

VeChain (VET) Price Prediction For 2022 And 2023

VeChain has been around for quite some time now. However, big things are expected of this cryptocurrency in the future. VeChain was started in 2015, and it has been working on establishing itself as the go-to solution for companies looking to improve their supply chain strategies.

If you look at the historical price charts for VeChain, you can see that the cryptocurrency has been fairly stable. This has a lot to do with how VeChain was built to remain a long-term project.

As it continues to gain traction from companies looking to move from legacy systems to blockchain solutions, there is a good chance that the value of VeChain will continue growing over time. In fact, according to some price predictions for 2022 and 2023, VeChain could see its value grow by over 10 times in the next 2 years.

TradingBeasts predicts that the VeChain coin might rise from the current price by the end of the year at around $0.032.

TradingBeasts predicts a leisurely but stable growth that will see VeChain VET grow steadily from month to month until the end of 2023. Following this linear trajectory, the coin will close the year with an average price of $0.0.347.

According to TradingBeasts, the same growth momentum will be replicated in 2024. VeChain will start the year trading at around $0.035 and close the year at around $0.042 or even cross the $0.05 level.

While VET can do better, this is still promising growth. According to these predictions, TradingBeasts believes that VET might grow by close to 76% in the next two years.

Pricepredicition.net predicts that VeChain will close 2022 at an average price of $0.027 and 2023 at $0.036.

Of course, anything could happen, and we might see better or even worse figures.

Again, not every price analysts share TradingBeasts’s optimism. For instance, Long Forecast predicts that the coin might close 2022 at around $0.02, start 2023 on a bearish note and drop to as low as $0.009 by the end of the year.

On the other hand, Gov.capital is much more optimistic and predicts that VeChain will be worth $0.027 by the end of the year. It will then grow to as high as $0.14 by the end of 2023.

As you can see, there are different predictions concerning the future of VET. From these predictions, VeChain will likely be worth between $0.05 and $0.1 in the next three years. Whatever the case, you should only take these predictions with a grain of salt and not as absolute roadmaps for making investment decisions.

The crypto market is tricky to predict, and we can’t tell exactly how much VET will be worth in 2022 or 2023. So, do your own research before making any major decisions.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Don't Miss: VeChain Price Predictions

How To Invest In VeChain

If you believe that VeChain can be a good fit for your investment portfolio, there are several ways you can invest in it.

The most common are:

HODLing
Trading
Staking

Method 1: HODLing

The most common way of investing in cryptocurrencies is to HODLing. This means that you simply hold on to your coins until there is an opportunity for you to sell at a good price. If you are looking for an investment with the highest chance of seeing growth, this is not a bad idea because it will allow you to make steady gains over time.

Although you do not have much control over this process, it still gives you the best chance of seeing significant returns because there is no limit to how high your cryptocurrency can climb.

In order to securely hold on to your VET tokens, you will need to transfer them to an off-exchange wallet. This is simply a wallet that is not based on the exchange from where you bought your tokens.

Wallets are usually categorized as hot or cold storage. Hot wallets are connected to the internet and, therefore, more vulnerable to security threats. On the other hand, cold storage is entirely offline, making it safer but also limiting its accessibility.

The best thing you can do for yourself is to transfer your coins to a multi-signature wallet. These wallets require multiple keys in order to make a transaction. This makes it much harder for hackers to steal your tokens, and it also gives you control of your coins.

Method 2: Trading

Another way of investing in VeChain is through trading. If you are good at day-trading or shorting cryptocurrencies, this is a good investment strategy to maximize your gains.

However, there is a lot of risks involved in trading, especially because it's hard to guarantee that you will get the best price when you sell your coins. This means that you could end up losing out on a lot of money if things don't go as planned.

There are several exchanges from where you can trade VET, but we usually recommend eToro. This is because eToro offers one of the best ways to short cryptocurrencies. This gives you the opportunity to make money even when the market is going down.

To trade VET on eToro:

Go to www.etoro.com and log in or create an account
Deposit a minimum of $200 into your account
Search for VET or VeChain and open it
Click on 'Trade'
Enter the amount you want to invest in VET
Click on 'Open Trade'

If you are new to investing in cryptocurrencies, you might want to avoid trading for now since it is much riskier and complicated than holding.

Method 3: Staking

Finally, you can invest in VeChain by staking it. This involves getting a node and using the services that come with it to earn rewards from the blockchain. In other words, you "stake" your coins to help bolster the network and receive a proportional amount of tokens as compensation.

This is not an easy way to invest in VeChain, but it is a way that you can get more control over your investment. You also have access to the network's services for free, which means that your returns are likely to be higher.

Of course, there is some risk associated with this method of investing since you are not guaranteed any return on your investment. But it's the most profitable way of investing in VeChain, and it can help you get a nice passive income over time.

You can stake in VET by either running a Masternode or through a cryptocurrency wallet such as the official VechainThor wallet. While running a Masternode is more rewarding, it is it requires difficult technical knowledge.

So, if you are just looking to stake casually, you should use a wallet. Whatever method you use, you will need to stake some VET in return for some VTHO tokens, which are sent on a monthly basis.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Is VeChain (VET) A Good Investment?

VeChain has proven itself to be one of the most reliable cryptocurrency networks in the market. It is more than just a supply chain management platform-it is helping improve efficiency across several industries.

The team behind VeChain consists of some of the best professionals in their fields. As they continue working on this volume, it's likely that its token value will continue going up in the next few years.

Also, VET is an ERC20 token since it was originally based on the Ethereum blockchain. This means that you can store it in Ethereum-compatible wallets such as the official wallet from VeChain. Lastly, one of the best things about this cryptocurrency is its potential to become a leading force in improving supply chain management.

VeChain is currently one of the most promising blockchain projects out there, and if you are looking for a reliable cryptocurrency to invest in, this might be it. The token value has been growing steadily over time, which indicates that VET could represent a good investment opportunity.

However, keep in mind that no crypto is guaranteed to be a good investment. You should always remember to do good research before you invest in anything. This could help reduce the risks involved.

Conclusion: So, Should I Buy VET?

VeChain is one of the most promising blockchain projects on the market today. It has been growing steadily over time, and just like any other cryptocurrency, it could be a very good investment opportunity for you if everything goes well.

However, there is no guarantee that VET will rise rapidly in price or become a good long-term investment since nothing is guaranteed in the volatile cryptocurrency market.

You should always remember to do careful research before investing in any asset, digital or otherwise. This will help you make wise decisions that could result in positive returns down the line.