I am having some confusion over the concept of covariant and contravariant vectors. Most text books on tensors define contravariant vectors/tensors as objects whose components vary inversely to the changes in its basis vectors. Most common example given is that of velocity.
Covariant vectors (or one-forms), on the other hand, are defined as entities that transform in the same way as the changes in their basis vectors, and a common example is gradient of some scalar field, like a temperature gradient.
But my understanding is that a vector is a vector. Intrinsically, it is neither covariant nor contravariant. It is the vector components that are either co or contra variants. If the vector is written in covariant bases, than its components are contravariant. If the same vector is written in contravariant bases, then its component becomes covariant.
As we can see, a vector can be written as
$$ \vec V \equiv v^ie_i \equiv v_ie^i $$
So, the same entity is both covariant and contravariant, depending on the basis vectors.
Intuitively also it makes sense. The velocity of an object can be expressed as n meters per second, (meaning the object travels n meters in a second), or as 1/n seconds per meter (meaning the object takes 1/n seconds to travel a meter). In the first way it will be a contravariant vector, and in the second way it will be covariant.
So, is my understanding correct, or are physical entities intrinsically covariant or contravariant?
A vector in contexts where co- and contravariant are used is not just any vector in $\mathbb R^n$. No, in this context, we're working on a manifold $M$, that is, roughly speaking, a smooth (hyper)surface. At each point $p$ of the surface we can construct a tangent (hyper)plane. This tangent plane is spanned by a set of tangent vectors, and these vectors together form the tangent space $T_pM$ to $M$ at $p$.
A vector is an element of such a tangent space. A covector, on the other hand, is an element of its dual space. Meaning that a covector is a linear map which sends vectors to real numbers. That's an entirely different object from a vector! Vectors aren't maps! At least not in this context.
Of course, using some linear algebra, we can construct covectors from vectors and vice versa. Given a vector $v$ and a scalar product $\langle\cdot,\cdot\rangle$, define the linear map $v^\ast: w\mapsto\langle v,w\rangle$. $v^\ast$ is a covector which in some sense corresponds to $v$, if we distinguish this chosen scalar product. In a similar way we can construct vectors from covectors. If you've come that far in your studies of physics: this scalar product is the metric $\eta$, which you use to lower or raise indices. This lowering and raising is just shorthand for the construction described above. Crucially, lowering and raising indices is not a change of basis, so it's not just a change of the vector components. It's the construction of a completely different object. If $v$ is a velocity, then $v^\ast$ is not! What's more, these two objects behave differently if we do actually change the coordinates. The vector varies contravariantly, meaning that if we change the coordinate system via applying the linear map $\Lambda$ to the basis vectors, then we need to apply the map $\Lambda^{-1}$ to the coordinate vector of $v$ in order to obtain the correct coordinates. A covector, however, requires that we apply $\Lambda$ to its coordinate vector in order to obtain the correct coordinates. That's what makes the difference between co- and contravariant vectors. They're different objects, which consequently behave differently under coordinate transformations. They are not just different representations of the same object. Physical quantities are intrinsically co- or contravariant, even though covariant quantities can be constructed from contravariant ones and vice versa. Velocities are always covariant. The object with lowered indices is not a velocity anymore.