In the past few years, the cryptocurrency market has expanded astonishingly. Investors who buy and sell cryptocurrencies are reaping massive returns, which are set to last for some time.
Since cryptocurrency trading has a bright future, now is a good moment to put resources into creating a crypto wallet for the masses.
The question is how to create a cryptocurrency wallet that people want to use.
In this article, we will go over the fundamentals of creating a cryptocurrency wallet, including its necessity, the features it must have, and the best practices for doing so.
Let’s get going!
Define the term “cryptocurrency wallet.”
A cryptocurrency wallet is a digital wallet that may be used to store, send, and receive Bitcoin.
It is a program provided by a reputable crypto wallet development company that records cryptocurrency purchasing, selling, and lending, and securely maintains the funds. Any user with access to a smartphone or other suitable device can quickly and easily set up a Bitcoin wallet.
The operation of cryptocurrency wallets is as follows:
To engage in cryptocurrency transactions, you must possess your public key, commonly known as your wallet address and private key.
A public key can be considered an analogue to a bank routing number. You only need their bank account number if you want to transfer or receive money from other people or organizations. Your public key can be your wallet’s address, so you can also distribute it to others to get the cryptocurrency.
Your cryptocurrency wallet’s private key is just as secret as the password to your bank account or the PIN to your debit card. Your bank account is protected with a PIN, so you shouldn’t give it to anyone.
You can think of a private key as the “password” to your Bitcoin wallet.
If you wish to buy some cryptocurrency or get some as a gift, you’ll need to give the person sending you the cryptocurrency your wallet’s unique cryptographic address.
Therefore, your cryptocurrencies do not physically reside within the cryptocurrency wallet but rather on the blockchain. Since there is no physical representation of cryptocurrencies, your ownership share is represented by your cryptocurrency wallet’s public and private keys.
With these two keys, you can transfer and receive cryptocurrency without exposing your private key to anyone else.
Types of Crypto Wallets
Different cryptocurrency wallets can be introduced to the market, each with its own set of potential customers and uses.
For instance, many crypto investors with a longer-term perspective want to keep their holdings in their wallets for a considerable time. Because of this, individuals may opt for a wallet with extra safety measures. However, users who engage in frequent cryptocurrency trading may prioritize speed and ease of use.
We classify cryptocurrency wallets as “cold” or “hot” depending on whether or not they have Internet access.
Hardware wallets are what you see here. They keep your keys on a device that doesn’t have Internet access. Popular cold storage wallets often mimic the form factor of a standard USB drive.
Paper wallets print your public and private key pairs on paper and are sometimes used as cold storage.
According to many crypto enthusiasts, the best way to safeguard your cryptocurrency is to keep it in a cold storage wallet. These wallets are the most secure since they cannot be hacked online. However, they are prone to being misplaced.
These electronic wallets are entirely virtual. Compared to cold wallets, they are easier to use but slightly less secure.
To use a hot wallet, you must install desktop software or a mobile app on your PC or mobile device. The many kinds of hot wallets are as follows:
1. Desktop Wallets
A desktop wallet is a digital currency storage device designed for use on a personal computer. Only the machine they were first installed will be able to access them.
A desktop wallet is a safe option unless a virus infects your computer. Bitcoin Core, Knots, MultiBit, Armoury, and Electrum are all desktop wallet options.
2. Mobile Wallets
Generally speaking, mobile wallets offer the same functionality as their desktop counterparts. Touch-to-pay and Near Field Communication (NFC) simplify handling payments at brick-and-mortar establishments by scanning QR codes.
Some examples of mobile wallets include Bitcoin Wallet and Hive Android.
3. Web Wallets
Using a web wallet makes accessing your cryptocurrency from any device (computer, mobile phone, etc.) simple. Everything is done in the Cloud. The security of having private keys stored digitally makes them very practical.
However, a third party often indirectly controls them so that they can become susceptible to hacking assaults.
What Drives the Requirement for New Cryptocurrency Wallets?
More and more people are putting their money into cryptocurrencies like Bitcoin and Ethereum due to their meteoric rise in value. Many new cryptocurrencies appear on the market regularly.
While Bitcoin and Ethereum have developed their cryptocurrency wallets, investors seeking to invest in various cryptocurrencies hunt for cryptocurrency wallets that are compatible with a wide range of cryptocurrencies.
Wallets for digital currency have other uses in the commercial world as well. It is possible for companies to create their own cryptocurrency wallets and incorporate them with existing payment and inventory management systems.
One common type of blockchain wallet is a mobile cryptocurrency wallet. Once downloaded to a user’s smartphone, the software can be used in any location, including brick-and-mortar shops.
Companies often choose to develop cryptocurrency mobile apps due to high demand.
- Unlike other wallets, these are compact and easy to use.
- They facilitate the quick, simple, and secure transfer of digital currencies.
The cryptocurrency transactions made using these wallets are also secure, private, low-cost, and decentralized.
Mobile wallet transactions are the most secure since customers are safe from identity theft and manipulated data.
How to Create A Cryptocurrency Wallet?
If you have a solid strategy, you can create a Bitcoin wallet app many people will use.
Let’s figure out the process and code up a secure app together.
1. Understand Blockchain and Cryptos
Cryptocurrency app development relies heavily on blockchain technology.
Investigate blockchain technology and digital currencies before creating a cryptocurrency wallet app.
As the Internet enables e-mails, blockchain technology promises to revolutionize the way digital currencies (cryptocurrencies) are implemented. As its name suggests, a blockchain is a connected series of blocks containing digital information (data).
The blocks are linked using the cryptographic notion of a chain. Its function is to ensure the safe transfer of sensitive information between parties.
2. Use Standard Cryptocurrency Open-source Libraries
Most digital currencies provide public source code. So, there’s no need to start from scratch. BitcoinJ SDK and the Coinbase Software Development Kit (SDK) are two examples of such freely available libraries and tools.
The Coinbase SDK is a platform-agnostic Java library. Using it, programmers may create a Bitcoin wallet that works on iOS and Android. Additionally, this library works with a wide variety of languages.
3. Use APIs
Developing a robust cryptocurrency wallet app is a breeze when you use APIs. Employ a distributed ledger application programming interface to sync your cryptocurrency wallet with the blockchain ecosystem effortlessly. Some of the most well-known APIs include Coinbase, Bitcore, SimpleSwap, and Factom.
With the help of APIs, your team can do the necessary tasks quickly, speeding up the app development process. Moreover,
4. Go Cloud
Select the most appropriate cloud services for your app now. You can use PaaS (Platform as a service) to build a web app.
But to build a crypto wallet software, you must find a BaaS (Blockchain as a Service) provider and incorporate their cloud service. Companies like Amazon, Azure, and
Microsoft provide solutions that can be used as BaaS.
Depending on your needs and preferences, you can build a trustworthy Bitcoin wallet software using either one.
5. Select the Right Technology Stack
Your app will succeed if you use the appropriate technological stack.
To create a web app, you can leverage technologies like HTML5, CSS3, and Node.js, to name a few. Develop a secure online application with this in mind.
You can use either Java or Kotlin to create a native Android app.
Both Swift and Objective-C may be used to build iOS apps.
6. Accentuate Security
When developing a bitcoin wallet app, security should be your top priority. This is why you must implement stringent safety measures in your cryptocurrency app.
Two-factor authentication (such as fingerprint, face ID, or hardware authentication) is an option for further fortifying the crypto wallet app’s security.
The developers must provide constant security patches. If there are any bugs or security flaws, they need to be found and fixed as soon as possible utilizing cutting-edge tools
7. Check Out Your Competitors
You want your cryptocurrency wallet software to be noticed. That’s why you must monitor the activities of your rivals. Recognize their methods and the technologies they’ve adopted. You can look through the available options to discover what special features your app can have.
Remember that staying abreast of current events is essential to maintaining an advantage over your rivals.
8. Get Started Making an App
So, when you’re ready to launch the creation of your cryptocurrency wallet software, make sure you:
- Set the parameters for your app.
- Create the software’s code and connect it to the backend data store.
- Make the UI easy to understand and use.
Be careful to put your wallet through rigorous testing before releasing it to the public.
Crypto wallet development, which allows users to safely store and manage their cryptocurrencies and participate in the decentralized financial system, is, in conclusion, a crucial part of the digital asset ecosystem. Strong security, user ownership and control, global accessibility, and the ability to maintain financial privacy are just a few of the many advantages offered by these wallets. For anyone interested in cryptocurrency, whether for investing, commerce, or the use of decentralized applications, these are essential tools.