Security and Performance in Cryptocurrency Exchanges
Kurkinen, Jesse (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023110728735
https://urn.fi/URN:NBN:fi:amk-2023110728735
Tiivistelmä
The purpose of this thesis was to research how different types of cryptocurrency exchanges formulate a proper market segmentation strategy for the security features and technologies that they use. In addition, the purpose of this thesis was to research how cryptocurrency exchanges create a sustained competitive advantage in terms of fees, user experience, and other key performance indicators.
The theoretical framework introduced the main theories used for the research: the Porters Five Forces analysis, the VRIO framework, the resource-based view, and the market segmentation theory. In addition, related information regarding the cryptocurrency ecosystem, security features, key performance indicators, technology, policies and regulations were briefly explained.
The research for this thesis was conducted in the form of a case study, in which the author did a comparative analysis of two different cryptocurrency exchanges, Binance and Coinbase. In addition, this thesis utilizes qualitative interviews, where the author interviewed customers of different cryptocurrency exchanges. The purpose of the interviews was to establish a deeper understanding of the state of individual customer’s opinions and experiences on the perceived security features, technologies, and key performance indicators in different cryptocurrency exchanges.
The research shows that different cryptocurrency exchanges formulate a proper market segmentation strategy in terms of the security features, and the technologies that they use by the following methods: for the less advanced users, cryptocurrency exchanges offer security and convenience. For the more advanced users, cryptocurrency exchanges offer advanced trading options, competitive fee pricing models, and customizable user interfaces. In addition, cryptocurrency exchanges create sustained competitive advantages in terms of fees, user experience, and other key performance indicators by the following methods: by offering competitive fee pricing models that are based on trading volume, built-in technologies such as their own cryptocurrencies that allocate discounts to the users in terms of fees, and the best security features in the industry for their customers.
The theoretical framework introduced the main theories used for the research: the Porters Five Forces analysis, the VRIO framework, the resource-based view, and the market segmentation theory. In addition, related information regarding the cryptocurrency ecosystem, security features, key performance indicators, technology, policies and regulations were briefly explained.
The research for this thesis was conducted in the form of a case study, in which the author did a comparative analysis of two different cryptocurrency exchanges, Binance and Coinbase. In addition, this thesis utilizes qualitative interviews, where the author interviewed customers of different cryptocurrency exchanges. The purpose of the interviews was to establish a deeper understanding of the state of individual customer’s opinions and experiences on the perceived security features, technologies, and key performance indicators in different cryptocurrency exchanges.
The research shows that different cryptocurrency exchanges formulate a proper market segmentation strategy in terms of the security features, and the technologies that they use by the following methods: for the less advanced users, cryptocurrency exchanges offer security and convenience. For the more advanced users, cryptocurrency exchanges offer advanced trading options, competitive fee pricing models, and customizable user interfaces. In addition, cryptocurrency exchanges create sustained competitive advantages in terms of fees, user experience, and other key performance indicators by the following methods: by offering competitive fee pricing models that are based on trading volume, built-in technologies such as their own cryptocurrencies that allocate discounts to the users in terms of fees, and the best security features in the industry for their customers.