Inside the Cryptocurrency and NFT Exchange Business Model

What you need to take virtual securities like cryptocurrencies or NFTs to the next level is ease of use.

Hello Public Virtual Securities Exchange Systems (Coinbase and its peers)!

By making trading virtual currencies as easy and familiar as trading traditional stocks and bonds, Coinbase radically grew the market for all forms of virtual securities. In addition, the backing by venture capitalists made cybercurrency/virtual security trading inherently more legitimate.

This article is part of a series on Virtual Securities Business Models.

The “Tulip Exchange” made the market

… and adding a virtual security to Coinbase immediately legitimizes it (and creates trading transaction revenues)… even better than Individual Influencers (see How to Make Money by Making Your Own Currency).

Ultimately, just as with traditional stock exchanges and banks, the credibility of the institution trumps technology…

… blockchain really isn’t needed anymore.

The key to a successful virtual security exchange are:

  1. Ease of Use.
  2. Legitimacy

Ease of use is probably the most critical component – easy to buy, easy to sell, easy to trade.

Questions, Comments, Extensions?

Would you like more information about how virtual security exchanges work? Do you have suggestions on how to improve this article? Other comments? Let me know.

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