With the introduction of cryptocurrencies, it has abolished the requirement of money transferring from one bank to another. Though, there is still a little segment of the population who doesn’t know anything about cryptocurrency. But most people are aware of its benefits and even getting profit out of it as well. Cryptocurrencies like Bitcoin have got popular quickly among the people who are required to save their crypto money in a safe place. This led to a higher need for a crypto wallet app.
In terms of getting details about how to build a crypto wallet app, we would like to tell you that there are different types of crypto wallets providing different levels of security. The main reason why crypto wallets are used is to store the private key securely that provides users access to the crypto network’s address.
At present, as we have mobile applications for every task, there has been also aroused demand for cryptocurrency wallet app development. Due to this demand, we have brought up a complete guide about the insights on crypto wallet apps with their different types, benefits, development process, and involved cost. Let’s dive into this-
What is Crypto Wallet App?
The crypto wallet app, medium, or device permits individuals to store, transfer, and receive their cryptocurrencies with utmost security along with managing them while following the best approaches of the Blockchain network including anonymity, and decentralization. It can be either software or hardware to keep the track of all the cryptocurrency transactions.
A crypto wallet app can be called a combination of a bank and a wallet. It mainly has two primary keys known as private and public keys. A public key works as a bank account, and it can be shared with anyone to send or receive money. To get the crypto, the user can share the public key (wallet’s address) with any individual or organization.
Whereas the private key is similar to any bank account password or debit card PIN that is needed to be secured. If you share it with anyone, they will have your cryptocurrency and can misuse it in any way.
Working Process of a Cryptocurrency Wallet
Businesses who think to build crypto wallets should get to know first how it works. When you want to obtain cryptocurrency, be it anything buying or getting it as a gift, you have to send the crypto sender a unique cryptographic address of the wallet. Here crypto wallet doesn’t hold the crypto coins directly within your wallet, instead of that, they are stored on the Blockchain. We know that cryptocurrency is not available in any solid form, hence the crypto wallet contains data relevant to the public and private keys that represent your crypto ownership. Keep scrolling to know more about it:
- The Blockchain network contains all the transaction records.
- Private and public keys within the crypto wallet app play a crucial role in executing transactions on the network.
- Sending or receiving any kind of crypto will have a huge impact on the token ownership on the network as it will change.
- The private key must get matched to the public key on the Blockchain network to get access to funds. It leads to wallet empowerment for making trades on your behalf.
- Funds will be obtained by the public key and can be founded in the distributed ledger.
- At last, the private key will be used to sign the transaction and to prove that the user has the public key linked with a similar address.
Why There is a Need to Create Your Own Crypto Wallet in 2022?
In this step of the cryptocurrency wallet guide, we are going to discuss the importance of building your own cryptocurrency wallet. Let’s have a look at them:
All the payments done within the Blockchain network will be safe, transparent, permanent, and anonymous. It directs to eliminate the fraud chances regarding transactions.
No Control of Government
When it is about crypto wallet app development, it is significant to review the government rules and guidelines. But here, there is no government control on the Blockchain, and it strengthens firms to earn money organically while permitting users to spend it accordingly.
Crypto wallets help to fasten up international transactions as every intermediary bank verifies the transaction data and then provides the payment receipt. Due to the security and transparency, there is an instant transfer of cryptocurrencies.
Large User Segment
Along with the people who don’t have any idea about crypto wallet development, some progressive users have always appreciated the benefits of cryptocurrency. Businesses also show their interest in knowing the cost and features to develop a cryptocurrency exchange like Binance.
Get to Know Diverse Types of Crypto Wallets
Want to create cryptocurrency wallets like Electrum? First, read out which type of crypto wallet you want to build. Depending on the different users’ requirements, here we have described different types of crypto wallets you can choose from-
1. Cold Wallet
Cold wallets are also known as hardware wallets that collect keys on a device without an internet connection. The cold wallets look like a USB device and are considered safer.
2. Hot Wallet
These are intended to be online storage wallets enabled to access anywhere. Hot wallets are also called software-based wallets, user-friendly but less secure than cold wallets. These can be accessed by installing a computer software program or a mobile app. It has different types mentioned below:
You must consider this type when it comes to how to build a crypto wallet. It permits users to collect their cryptocurrencies on any device like a computer directly, but it needs to have enough storage, strong computing power, etc. for it. Desktop wallets that collect cryptocurrencies using a midway service require less computing power. It provides you with complete control over the funds and keys with proper security measures. These wallets comprise MultiBit, Bitcoin Core, Hive OS X, etc.
These can be installed on mobile devices and include QR codes to trade cryptocurrencies. Mobile wallets require high security as these are the most vulnerable to viruses and malicious apps. Hence, you must pay more attention to its encryption using a password and also backup the private keys if the phone gets stolen or lost. Some of the mobile wallets are Hive Android, Bitcoin Wallet, and Mycelium Bitcoin.
You can think to build your own crypto wallet like web wallets, these are accessible with the help of a web browser. There is no need to download a particular software on your smartphone or computer. The website has a crypto wallet that often has the key to the cryptocurrency that provides you less control over the crypto. Blockchain and Coinbase are two famous Web Wallets.
While discussing cryptocurrency wallet development, it is the most secure one as these collect bitcoins on physical hardware associated with the computer through a USB port. These are already saved from the virus attacks and store private keys to get the crypto.
It works as a document including public and private keys for cryptocurrency management. These keys are printed out physically as QR codes and these can be scanned at the time of crypto transactions.
Must-included Features for Crypto Wallet Application
Nowadays, businesses are looking for expert crypto developers so that they can have a fully featured and smooth-functioning crypto wallet app. Features play a vital role in the app’s functioning, be it a white-label crypto wallet app or an app from scratch.
Here is a synopsis of the crypto app features below when you are getting an understanding of how to create a crypto wallet:
1. User Authorization
Cryptocurrencies have the highest chances of security attacks due to their value and popularity. Hence, user authentication is essential including 2FA (two-factor) or MFA (multi-factor authentication). These enable apps to have extra security in comparison to traditional non-crypto apps. It includes the process of adding a username & password to wallet access securely.
2. QR Code Scanner
Crypto wallet apps including QR code scanner adds convenience, speed, security, and simplicity to the transactions. Users can have crypto transactions with a single click.
3. Conversion Rate
While transacting cryptocurrency between multiple modes, multiple currencies, and multiple fiats and digital currencies, it will surely need to be updated with real-time currency value.
4. Multi-currency Support
While having cryptocurrency exchange development services, you must pay attention to multi-currency support. It must allow users to transact different currencies swiftly without any issue.
5. Import Paper Wallet
A suitable crypto wallet app should provide users the flexibility to users scanning a paper wallet with the help of a QR code. It helps send and receive cryptocurrencies from one account to another.
6. List of Addresses
With this feature, users will be able to have a smooth and fast transaction process with their familiar addresses. Here users can add a list of addresses that they use frequently to do transactions.
7. Push Notifications
This way, users will get notified about the current price of the digital money, the success, or failure of a transaction, etc. including all the account activities.
8. Secure Transactions
Integration of Blockchain technology will surely impact the crypto wallet app development cost but it provides additional security to transactions within crypto apps. The process of sending or receiving the digital currencies with the crypto wallet app will be tamper-proof and fast with the help of adding wallet backup, 2FA, multi-signature, and consistent security updates. Users can also view their transaction history and available balance through it.
9. Payment Gateways
Different kinds of payment gateways provide users the flexibility to pay easily while buying or selling their digital assets. Payment gateways can include wallet funds, debit, credit cards, etc.
10. Optional Session Logout
It is an essential feature to add when it comes to how to make a crypto wallet app. Adding an instant logout feature will reduce the risk of hackers’ access to crypto wallets. The account will log out automatically after a particular period to stop the fund migration by any anonymous person.
How to Create a Crypto Wallet Application?
Looking for guidance on how to make a cryptocurrency wallet? Here we have come up with the step-by-step process that will help you to get an appropriate crypto wallet app.
Have a look at the following stages:
Market Research & Technical Analysis
Before diving into the crypto wallet development phase, it would be great if you go for an analysis of competitor market ad business requirements. It will be advantageous for you to get through the needed technical aspects for app development. This research will provide developers an understanding of the project purpose and their required contribution in terms of cryptocurrency and Blockchain development services for projects.
Designing the Business Architecture
After getting clarity on project requirements, it is time to move on to the wallet app architecture while coordinating with the clients. These specifications will lead you to the wallet’s front-end and back-end development, creation of the wallet, the process of data storing & retrieving, and the way transactions are performed. The app architecture will act as a blueprint that will be used in all the stages of development.
Now, we will move to front-end development including UI/UX design. It will help to draw out the different parts of the crypto wallet and how they will function or interact with the users. Here, the app designers will create a low-fidelity prototype to provide a rough idea to the client. Later, a high-fidelity design will be generated for the final look.
Smart Contract Development
This step is optional as not every organization wants to go for Smart Contract development. Smart Contracts are used to add functionality to the crypto wallet while handling the major eliciting incidents including account recovery process, faster transactions, extended limits, etc. The created Smart Contract for your wallet must require to be audited and tested earlier.
When hiring a cryptocurrency development company, you needed to pay attention to their expertise and skills when it comes to back-end development. This process will include code writing and Smart Contract execution. To create a cryptocurrency wallet, developers can use standard crypto open-source libraries like Coinbase SDK or Bitcoin SDK. In this, integrating APIs will permit you to sync the cryptocurrency wallet with the Blockchain ecosystem. Here some of the popular APIs are Factom, Coinbase, and Bitcore. Including a suitable tech stack for Android or iOS will make the development process smoother and faster.
Before the app deployment, the developed crypto wallet app will be tested based on various aspects. If it includes any oversights or bugs, resolve it sooner to lessen the time-to-market. Once it is fully examined, it will be ready to launch and target audiences will be able to use it.
After getting all the steps done swiftly, the crypto wallet can be released on the chosen platform to make it available for the users. For this, it must follow the specified guidelines of the platform.
How Much Does It Cost To Develop a Bitcoin Wallet?
While thinking about crypto wallet development, every business gets concerned about its cost. Pointing out different aspects such as the list of features, technology stack, team structure, location and experience of the chosen cryptocurrency development company, hours of resource, project complexity, and many more, it seems really difficult to estimate the exact cost. Comprising all the development stages like back-end development of Android, iOS, or web/desktop, App design, testing, etc. overall, the cost to develop a crypto wallet app would be around $30,000 to $50,000. Though, it can vary according to the business resources and clients’ requirements.
Cryptocurrencies, Blockchain, Smart Contract, etc. are some of the terms that are getting popularity because of the benefits such as security, speed, and flexibility they provide. Though there are still some challenges that can occur in crypto wallet app development, apart from those, it is considered one of the big players in the high-advancing market. The increasing popularity has also resulted in the advent of various diverse Blockchain and crypto projects.
If you are also one of those who want to go for cryptocurrency wallet development or want to know how to set up a cryptocurrency wallet, SemiDot Infotech is just one step away to help you. We own a set of adroit developers and designers who knows how to provide business-oriented services including customized crypto wallets. Contact us and give us a chance to assist you.