Cryptocurrency Wallet development – A Complete Guide

I hope you understood what a crypto wallet is. Now let us see the various types of cryptocurrency wallets.

Types of Crypto wallets

These cryptocurrency wallets can be divided into two major categories depending on their connectivity to the internet and security features. They are Hot and cold crypto wallets.

Cold crypto wallets

The cold wallets are hardware wallets. People with a good volume of crypto assets who are afraid of hackers online prefer offline wallets. These wallets are more like safe vaults. They come in two different forms.

In the first type of cold wallet, the key is stored offline on Pendrive-like devices with a small LED screen. It can be kept in someplace safe and can be used by connecting it to the desktop apps whenever needed.

Second, are the paper wallets. It contains the public and private authentication keys of the user. The user has to preserve the paper in order to keep the wallet intact. If the paper is lost, then the particular crypto wallet cannot be accessed.

Hot crypto wallets

The hot wallets are software-based crypto wallets. They can either be mobile applications, desktop software, or web browser extensions. Hot wallets are easy to use but less secure compared to cold wallets.

These hot wallets come in three different forms.

1. Desktop wallet

– This wallet is software installed on the desktop. It can be used to store the crypto assets directly on the computer. But, this requires more storage and computing speed in the computer. Any third-party services can be used to eliminate this problem.

2. Mobile wallet

– It is an application installed in the mobile phone that can be used to trade cryptos. The mobile wallets allow easy transactions through QR code and NFC (Near-Field Communication) transactions.

3.Web wallets

– These wallets are online services that make transactions on our behalf. They can be accessed from anywhere with any device. The private key is stored online for easy access to the wallet. This feature makes it immune to hackers.

The crypto wallets can also be grouped into custodial and non-custodial cryptocurrency wallets.

In the custodial Cryptocurrency wallet, An intermediary saves the private key of the user wallet. This wallet is less secure compared to the other wallets but wallet recovery is possible even when the private key is lost
In the non-custodial cryptocurrency wallet, the user holds the complete information of the private key. It is the more secure way but once the private key is lost, the wallet cannot be recovered.

These types of crypto wallets may give you a slight clue of how prevalently they are being used. Hence, it becomes a necessity to develop a crypto wallet for your blockchain business. If you are still not convinced, let us look at the reasons why it is wise to go for cryptocurrency wallet development for your blockchain business.

Benefits of developing a cryptocurrency wallet

Though there are standard successful cryptocurrencies like bitcoin and Ethereum, there are many new cryptocurrencies entering the competition. This has piqued the interest of investors to invest more in digital assets.

When the usage of cryptocurrencies increases, the need for more facilities to store and access the crypto increases with it. People have started looking for more features in their crypto wallets. Creating their own feature-rich and secure crypto wallet will help businesses to attract more users.

Here is the list of cardinal benefits of cryptocurrency wallets

The transactions are more secure on the blockchain network compared to the traditional methods. The transactions are transparent and irreversible which makes them trustworthy.
Managing the business becomes easier with no regulations to follow.
There is no intermediary fee. This makes the transactions a lot cheaper.
The users can solely control all your transactions.
Transactions are faster and there are no time limits.
The privacy of the wallet user is well protected. It is impossible to find the user using the wallet address, as they are encrypted.
The decentralized Crypto exchanges are resistant to inflation and other economic crises.

Therefore, it is ideal to develop a cryptocurrency wallet for your blockchain business with the help of a professional cryptocurrency wallet development company.
Now we can see the step-by-step process of how a cryptocurrency wallet is developed.

Steps in Cryptocurrency wallet development

1. Planning – Lay out all your business goals and prepare the project plan, workflow, and time frame according to the goals.

2. Building – The standard crypto open source libraries and tools can be used to build the cryptocurrency wallet for both the iOS and Andriod platforms.

3. Designing – The UI and UX development decide the appearance of your wallet. Make sure to choose a user-friendly design for user convenience.

4. Testing – Testing the product is as important as developing it. It eliminates all the bugs the wallet might have once deployed. This step is absolutely necessary to arrive at a flawless wallet.

5. Implementing – It is important to synchronize your crypto wallet into the blockchain network using the appropriate Application Program Interface (API). This allows your users to make payments using the cryptos on your website.

Building a safe and secure crypto wallet is not child’s play. As a crypto wallet involves very valuable transactions, it is crucial to concentrate on the features to ensure the reliability of the wallet.
So, we can see the list of features to focus on during the cryptocurrency wallet development

The essential features of a Cryptocurrency wallet:

To develop a reliable crypto wallet, it is essential to decide about all features and security standards that are needed to be incorporated into your wallet.

Two-factor authentication

A high degree of security is essential in the crypto wallet to remain immune to cyber-attacks. Thus, two-factor authentication is necessary to ensure the security of the user verification process.

Exchange platform adaptability

Most cryptocurrencies are used for the purpose of exchange and trading. So, the wallet must allow the user to trade the cryptos on any exchange possible and they must be highly adaptable with the exchange platforms. This will increase the desirability among the users as it can be integrated into any platform without any hassle.

QR code scanning

QR codes are already making much impact on the transfer of fiat currencies. Thus it’s important to include such a feature in the Cryptocurrency wallet development process.
QR codes will facilitate quick transactions in a safe and secure way. It skips the inconvenient process of typing the long wallet address to identify a user, as the wallet information can be extracted using a scanner.

Push Notifications

Notifying every transaction happening in the wallet helps the user to stay updated on all the crypto transactions. It acts as another form of security.

Conversion Rates

The cryptocurrency wallet should be capable of calculating the transaction fees based on the latest conversion rates. As the wallet allows the user to make different types of transactions between various cryptocurrencies and fiat currencies, it must have the details of the updated currency value from time to time.

Multiple cryptocurrencies

The wallet must support multiple cryptocurrencies because it is difficult to maintain too many wallets for different cryptocurrencies. With many new crypt

os hitting the market, the wallet must allow the users to carry on transactions between various cryptocurrencies.

Advanced features

Make sure to incorporate some advanced features like automatic session logout, the negation of duplicate payments, multi-factor authentication, and upgraded security.

Conclusion

A cryptocurrency wallet will help you monitor all your blockchain transactions. With the rise in the arrival of new cryptocurrencies, this is the perfect time to develop a cryptocurrency wallet for your blockchain business. Though building a fine crypto wallet seems like a tedious task, it can be done easily by hiring a top cryptocurrency wallet development company. They can help you right from planning to the successful launching of your crypto wallet.

Stand out from the competition by choosing the best cryptocurrency wallet development solution which offers you advanced customized features and high-security standards.