In recent years, the cryptocurrency market has expanded extraordinarily well. This trend will continue for a very long time, as crypto traders earn enormous returns on their investments.
As the future of crypto trading appears promising, now is the time to invest in developing a crypto wallet for a large consumer base.
Now, the question is how to design a crypto wallet that users will appreciate.
This article will explore the fundamentals of a cryptocurrency wallet, including why it is necessary, its features, and how to create an exceptional cryptocurrency wallet.
Let's start!
What Is a Blockchain Wallet?
A cryptocurrency wallet is a piece of software used to store digital currencies. A user can use a cryptocurrency wallet to lend, buy, sell, and keep track of the cryptocurrencies in their assets.
Integrating crypto wallet applications with multiple blockchains enables users to send and receive digital money. Crypto wallets do not hold cryptocurrency in the same manner as a traditional wallet. Because cryptocurrencies do not exist in the physical world, this is the case. The private and public keys of a user are maintained in a crypto wallet as evidence of their ownership of the cryptocurrency they possess.
Following a brief review of bitcoin wallet apps, let's examine the numbers.
Cryptocurrency Wallet App: Key Market Stats!
According to predictions from financesonline, by 2023, there will be over 75 million users of crypto wallet apps. As more crypto wallets and cryptocurrencies are introduced to the market, the number of users will increase.
According to Valuates Reports, the global Cryptocurrency Wallet App market is anticipated to increase at a CAGR of 33.7% between 2020 and 2027, from US$ 167.7 million to US$ 1,220.1 million.
What are the Many Types of Cryptocurrency Wallets?
Wallets for cryptocurrencies can be categorized into various categories.
Desktop Wallets
Desktop wallets are the most prevalent and widely-used form of cryptocurrency storage. Users can save their crypto on their PCs. Users must install the wallet simply as they would any other software. All major operating systems, including Mac OS, Windows, and Linux, are compatible with these wallets.
Mobile Wallets
Since handheld mobile devices are so prevalent, there are mobile wallets that are compatible with them. In addition to its portability, its QR code compatibility facilitates rapid digital payments. Both Blockchain and Mycelium are trustworthy mobile wallets for iOS and Android users. Bitcoin wallets are an excellent option for Blackberry mobile devices.
Web Wallets
Web wallets enable easy access to cryptocurrencies from anywhere — any browser, mobile device, etc. They operate in the cloud. Online storage of private keys makes them extremely convenient to utilize.
However, sometimes they become susceptible to hacking assaults since a third party controls them indirectly.
Document Wallets
There are QR codes printed on the wallet. Some wallets allow you to download the code to generate new addresses when you are not online. They are not hackable, but the sheer number of flaws renders them susceptible. Problematic is the inability to send some funds. Consequently, it cannot be used again. After introducing hardware wallets, their popularity for cold storage decreased significantly. Overall, paper wallets can be created if stringent security precautions are taken.
Hardware Wallets
These devices resemble standard USB disks in appearance. They are pretty helpful and reliable. Ledger and Trezor, for instance, are recognized as two of the most convenient cryptocurrency hardware wallets.
How to Create a Wallet for Cryptocurrency?
Let's have a look at how to construct a crypto application.
Know Blockchain and Cryptocurrencies
For the development of crypto wallets, blockchain technology is essential.
To design software for crypto wallets, you should first educate yourself on blockchain and cryptocurrencies.
Similar to how the Internet permits the use of email, blockchain is an innovative and promising technology that enables the use of digital currency (cryptocurrencies). As its name suggests, a blockchain is a network of blocks that contain digital information (data), and the chain is the cryptographic principle that links the data blocks. The purpose of using it is to enable the secure exchange of sensitive information.
Utilize Standard Open-Source Cryptocurrency Libraries
The vast majority of cryptocurrencies are open source. Consequently, there is no need to recreate the wheel. You can utilize freely available libraries and tools, such as BitcoinJ SDK and Coinbase SDK.
Coinbase SDK is a platform-independent Java library. It allows developers to create bitcoin wallets for iOS and Android. Additionally, this library supports numerous common programming languages, such as Python, Java, Ruby, etc.
BitcoinJ SDK is simple to use and comes with extensive documentation. Moreover, BitcoinJ is JVM-compatible and supports its languages, such as C++, JavaScript, Ruby, and Python.
Use APIs
Using APIs is a terrific method to create cryptocurrency wallet software with several features. A distributed ledger API will make it simple to synchronize your cryptocurrency wallet with the blockchain ecosystem. Coinbase, Bitcore, and Factom are three of the most popular APIs from which to choose.
Using APIs, your development team may quickly perform the necessary procedures, accelerating app development.
Go Cloud
You must choose the appropriate cloud platforms for your application at this stage. For web application development, PaaS (Platform-as-a-service) is a viable option.
However, to build a cryptocurrency wallet app, you must choose a BaaS (Blockchain as a Service) provider and incorporate their cloud service into your app. Companies like Amazon, Azure, and Microsoft provide BaaS offerings.
Depending on your needs and preferences, you may design a secure bitcoin wallet software using either of them.
Choose the Appropriate Technology Stack
With the proper technology stack, your application will be successful.
If you want to create a web application, you can utilize Node.js or Angular.js combined with HTML5 and CSS3. This will aid you in developing a scalable cryptographic web application.
You can choose Java or Kotlin while developing native Android applications.
And Swift or Objective-C can be utilized for iOS applications.
Accentuate Security
Security is of the utmost importance when developing a bitcoin wallet software. Consequently, you must ensure that your cryptocurrency application has top-tier protection.
Two-factor authentication (Fingerprint, Face ID, and Hardware Authentication) can be used to add more security layers to the crypto wallet software.
The developers are responsible for ensuring continual security updates. They must promptly discover vulnerabilities and other security issues and address them using the most recent technologies.
Examine Your Competitors
You want your cryptocurrency wallet app to stand out from the crowd. Therefore, it is essential to monitor your competition. Understand what they are doing and whatever technology they have implemented. You can examine the characteristics to determine which distinctive features you can add to your application.
Remember that you must be aware of your surroundings to gain a competitive advantage over others.
Begin Your App Development
So, when you're ready to begin the construction of a crypto wallet software, be sure to accomplish the following:
- Determine all of the app's features.
- Create the application code and connect it to the database.
- Create a straightforward and user-friendly interface.
- Before releasing your wallet, you should undertake comprehensive testing.
How to Secure the Crypto Wallet App?
When developing a crypto wallet, security must be considered. Nothing else matters from the user's perspective if they cannot properly store their cryptocurrency. To earn the trust of users, crypto wallet apps must provide advanced security features.
So, what should one do? How can a crypto wallet app be secured?
Follow the below guidelines to boost the security of your custom cryptocurrency wallet application!
Two-factor Authentication
A crypto wallet program that requires two-factor authentication for login protects customer assets against cybercriminals. Developers of blockchain applications must include a feature that requires users to authenticate login attempts from unknown IP addresses and to prove their identity upon login.
Biometric Authentication
Upon receiving a request to transfer bitcoins, biometric security, such as facial/fingerprint recognition, performs legitimate transactions by authenticating the user's identity.
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The success of a crypto wallet depends on its security and other consider
