Unique risks
Cryptocurrency projects typically aim for decentralization, but that's not the case with VeChain. It's built more like a large corporation with a centralized design, and it has a relatively small group of transaction validators due to its proof-of-authority system.
This isn't necessarily a bad thing. It just means that the VeChain Foundation is in full control of the project, and, if you're going to invest in VeChain, you'll need to trust in the foundation behind it.
As previously mentioned, VeChain is aimed at businesses, which has its benefits and drawbacks. The downside is that there's less incentive for individuals to hold VET tokens. They don't need it since they aren't the target market for its services, and the staking rewards are lackluster.
Is VeChain a good investment?
VeChain has some key things going for it as an investment. It has real-world utility and it's currently in use through partnerships with dozens of companies. That's a welcome departure from blockchain projects with poorly defined objectives and only theoretical utility.
There's a strong group behind VeChain that has done an excellent job of pushing it forward. Equally important, VeChain and its team haven't gone through any scandals or been involved in shady business.
On the other hand, VeChain is lacking in terms of brand awareness. While some of the biggest cryptocurrencies have become household names, VeChain isn't as well-known or widely talked about.
It's easy to see the potential of VeChain, and it's one of the better cryptocurrency investments. Keep in mind that, just like other cryptocurrencies, the value of VeChain is highly volatile, so be prepared for the ups and downs if you decide to invest.
How to buy VeChain
To buy VeChain, register for an account with a crypto exchange that offers it. Availability can be hit or miss, but here are a few popular crypto exchanges that support VeChain trading:
- Crypto.com
- Binance.US
- Binance (not available for U.S. residents)
VeChain doesn't get as much attention as the most popular cryptocurrencies, and it's somewhat undervalued when you consider its real-world applications. Those looking for an alternative to the usual crypto investments should consider VeChain.
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