The term cryptocurrency changed from a niche term into an overnight sensation. In the past two years, nearly everyone has heard about the term or has a general idea about the word. The popularity of Bitcoin made it a necessity for people to store their coins in a secure location. The answer to this need was the creation of a crypto wallet. A crypto wallet functions are similar to a traditional wallet as they both provide you with a safe place to store money.
That is where the similarities between a wallet and a crypto wallet end. A user must have a crypto wallet, or they cannot store bitcoin and any other cryptocurrency. There are many crypto wallets available, with each one providing different security layers. The primary purpose of a wallet app is to store a private key. The function of this secret key is to give the user access to their stored crypto.
The increasing popularity of cryptocurrency led to a growing need for crypto wallets and crypto wallet development. This guide will take you through the process of cryptocurrency wallet development
What is Cryptocurrency?
Cryptocurrency is a form of digital currency you can use to buy anything. It is decentralized by nature, meaning it has no central authority to maintain or manage the currency. The thing that makes cryptocurrency interesting is its use of blockchain technology. A blockchain is an open distributed ledger anyone can view. Transactions made on the blockchain form blocks. These blocks link together and form a chain of earlier cryptocurrency transactions.
Overview of a Crypto Wallet App
A crypto wallet is an application where you can store your crypto. Think of it as a combination between a bank and a wallet. Presently, many crypto wallets are available in the market; however, some users prefer a custom solution to fit their requirements.
The number of people using a crypto wallet will increase every day. Hence, it is the best time to get into cryptocurrency wallet development
Crypto Wallet Types
Listed below are the significant types of crypto wallets available.
➤ Desktop Wallet
Desktop wallets are the most common and most popular crypto wallet types available. They enable the user to store their crypto on the desktop. Users are required to install the wallet like they would with any software. These wallets work on all operating systems like Mac OS, Windows, and Linux.
➤ Online Wallet
These wallets require a unique key to operate. These wallets are beneficial to users who cannot access their PC and want to view their accounts. The only downside to this type is that they are prone to hacking.
➤ Hardware Wallet
These wallets enable the user to store a copy of their private key. These wallets are like a physical safe. They are the ideal choice for users who do not actively buy and sell their crypto.
➤ Paper Wallet
Paper wallets have a printout of the user’s private and public authentication keys. This type is the least secure wallet type available. If the user loses the paper, they also lose access to their crypto wallet.
➤ Mobile Wallet
This type is a combination of the online and desktop wallet. The user can use a mobile app and access their crypto from anywhere globally. Many companies specialize in this type of crypto wallet development.
Core Features to consider before Crypto Wallet Development
Here is a list of the must-have features for any crypto wallet.
· The facility to convert fiat currency to crypto and crypto to fiat currency
· Display a session timeout after a successful transaction or after experiencing an inactivity period
· The facility to scan QR codes
· Real-time notifications and regular updates
· Multi-currency support for storing any crypto and any currency
· Security protocols like password and transaction pin
· Nominal transaction fees
How to Secure the Crypto Wallet?
➜ Increase Awareness of Scurity Measures
Inform the users about the importance of their public and private keys. Teach the user base the risk of losing their investments if they share their passwords or keys with anyone else.
➜ Utilize Multiple Authentication Methods
Today’s technologically advanced age ensures that passwords and PINs alone are not enough. Presently, it is better to rely on a two-factor authentication method. The reason for this is the requirement of an extra log-in credential. This second credential can be an OTP sent as an email or SMS. Though some users can find the process frustrating, the two-factor authentication or 2FA method is reliable. It provides additional security if the password or PIN gets compromised.
➜ Encourage User Profile Diversification.
Encourage the users to invest in multiple options. In today’s world, it is better to diversify profiles instead of sticking to one. If there is a security breach, users with more than one account are less likely to lose their crypto. Many users with a crypto app have multiple accounts on the same platform. This approach reduces the risk of the user losing their investments.
Cryptocurrency Wallet Development Phases
A typical cryptocurrency wallet development phase has multiple stages. Listed below are the development phases you go through, and these phases occur regardless of the crypto wallet you develop.
Planning
Any development process first goes through a planning stage. This phase is where you decide the features to include before the crypto wallet development. When searching for a cryptocurrency wallet development company, find one that can incorporate these features into the product.
Consider the budget
A solid plan helps you complete the first phase. This phase requires you to consider and set a budget before starting development. Many businesses and entrepreneurs make the mistake of not having a solid budget in mind and face numerous problems. Also, it would be beneficial to include the MVP features during this process.
UX and UI development phase
This phase is one of the most vital moments of the development process. The UI will decide the product’s success or failure. Ensure to create a clear and crisp UI backed up by a robust UX. That way, the user will want to return to the product.
Coding
Coding is where your cryptocurrency wallet development company streamlines every process. Here, the team must ensure the whole process is seamless and fluid.
Testing phase
Now it is time to test the product. Testing is an essential yet overlooked part of the development phase. It is during this phase that the team removes any bugs and glitches found in the app. Ensure that the product development team has enough time and room to test the product. That way, you have an error-free result.
Deploy and support
With a robust final product in hand, you can release the solution. A good cryptocurrency wallet development company provides additional support to their itsts after releasing the product. If you experience any downtime or difficulties, the team can help you overcome those issues.
Closing Thoughts
The process of crypto wallet development is typically a tedious one. However, the result is worth that effort. Every cryptocurrency in existence requires a crypto wallet, which means there is always a need for these crypto wallets.
As stated before, more people are moving to crypto space, meaning that their needs will increase. Now is the time to take advantage of that growing need and introduce a crypto wallet.