Did you know that over 300 million users, which is close to the U.S. population, have already embraced the use of cryptocurrencies? In September 2021, the cryptocurrency market reached a total value worth $2.16 trillion. These numbers suggest the increasing need for blockchain wallet apps. You’ll need a crypto wallet to store all your digital coins and ensure security, anonymity, and make huge financial gains.
This article highlights the following takeaways:
Using blockchain-based cryptocurrencies requires answering questions like “What is a blockchain wallet and why do you need one?” A blockchain wallet refers to a cryptocurrency wallet that lets you manage Bitcoin, Ethereum, and other types of cryptocurrencies.
Unlike traditional money transfer mechanisms, which require the presence of an intermediary (typically a bank), and constant monitoring of accounts, transferring and exchanging funds is fast, easy, and secure with a blockchain wallet because of its several features. These include easy accessibility from the web and mobile devices and the ability to protect users’ identity and privacy.
If you’re aiming to develop a cryptocurrency wallet app, you should familiarize yourself with the different types of crypto wallets.
First, decide whether you prefer to develop a centralized (custodial) or decentralized (non-custodial) crypto wallet. With a custodial crypto wallet, you need to create private digital keys to let the wallet work on a server. These digital keys are like organized strings of words that serve as a password to your wallet.
Then, non-custodial crypto wallets create a secret backup phrase inside the wallet application itself. Thus, customers can ensure their funds’ safety without depending on third parties. If you’re the only owner of the keys to a wallet, no other person can access your money.
Knowing the types of blockchain wallets also means learning about hot vs cold wallets. Hot wallets refer to online wallets that allow you to immediately transfer cryptocurrencies. A faster transfer is made possible by storing private keys in the cloud. You can access them online 24/7 using your mobile device or desktop. However, this type of wallet includes risks of theft and other online vulnerabilities. Blockchain.info and Coinbase are considered hot wallets.
Meanwhile, cold wallets refer to digital offline wallets, which means each transaction is signed offline and disclosed online. They’re not stored in the cloud and are just kept offline for increased security. Ledger and Trezor belong to cold wallets.
There are several sub-categories that fold under hot and cold wallets:
Hardware wallets store the private keys in a safe hardware device like a USB. The wallet is like a portable device you can plug into your computer. This kind of wallet is safer against malicious attacks. When performing transactions, make sure your hardware wallet is connected to your computer system.
Paper wallets involve an offline method to store cryptocurrencies. The printer paper contains your private and public keys, and you can access them through a QR code. Common paper wallets include MyEtherWallet and Bitcoin Paper Wallet, which are ideal for storing huge amounts of cryptocurrencies.
Despite common misconceptions like web wallets as the least secure option and the ability to generate a new password to crypto wallets, a crypto wallet offers several benefits.
Through cryptography, you can benefit from enhanced security with cryptocurrency wallets. All data is encrypted and no one can see it apart from the wallet holder. You get an extra layer of security from two-factor authentication and multi-signature wallets, making cryptocurrency wallets more secure compared to other forms of digital payments.
One of the major benefits of a crypto wallet is its ease of use. After installing the crypto wallet app, you can already use it immediately. You can focus on a wallet app that accepts a single or several types of data transactions depending on what you aim to focus on in your blockchain wallet development company.
You can also enjoy quick, smooth, and hassle-free transactions worldwide with cryptocurrency wallets. You won’t need intermediaries, so you can expect low to no fees too.
Blockchain technology allows the distribution and verification of the same data. By using the bitcoin wallet app, you can be confident that the data is not compromised, corrupted, or lost.
It may be challenging to develop a cryptocurrency wallet, but with careful planning and execution, you can produce an exceptional app.
Building crypto wallet apps requires a thorough understanding of blockchain and crypto technologies. Digital currencies like cryptocurrencies work because of blockchain technology. The blocks have digital information, while the chain refers to the cryptographic principle that makes the connection of data blocks possible. You use blockchain to share data safely and securely.
APIs allow you to develop a cryptocurrency wallet app that’s full of features. By utilizing a distributed ledger API, you can quickly synchronize the crypto wallet and the blockchain ecosystem. Your blockchain wallet development company can speed up the app development process.
If you’re developing a web application, you can select Platform as a Service (PaaS). However, if you’re focusing on crypto wallet development, find a Blockchain as a Service (BaaS) provider like Microsoft, Azure, and Amazon. Then, apply their cloud service to your application.
If you want to develop a scalable crypto web app, Angular.js or Node.js together with CSS3 and HTML5 are great options. If you’re aiming for iOS apps, you can use Objective-C or Swift. Then, for Android apps, you have Kotlin and Java.
Prioritize security in your crypto wallet app through two-factor authentication, face ID, hardware authentication, and fingerprint passcodes. Continuously provide security updates and fix security problems immediately using the most recent technology.
Find out what your competitors are doing, including the technologies and features they’re using. This way, you can look for ways to stand out and provide more unique and efficient features in your app.
When starting app development, decide on the application features to use and write the code. Then, design an easy-to-use interface, and run extensive blockchain tests before finally launching your crypto wallet app. Doing so ensures not only safer and more secure transactions but also the success of your app in the market.
Crypto wallet apps should contain important features that promote convenience, efficiency, and security.
With a QR code scanner, crypto wallet app transactions become faster, easier, and more secure. Users no longer need to type long characters because the wallet addresses are scanned automatically.
Apart from the usual username and password, you can improve your crypto wallet app’s user authentication through two-factor or multi-factor authentication. This gives users an extra layer of protection.
Your crypto wallet app should also let your users scan a paper wallet. They can do so with the QR code for transacting crypto money.
Various currencies are added now and then with changing values. Thus, your crypto wallet app must support several currencies. This also leads to smooth transactions of varying currencies.
To keep your users updated with crypto transactions, enable push notifications. They’ll be informed of their digital money’s price, both successful and failed transactions, and more. The feature also shows that notifications to every transaction are performed in real-time.
Given that conversion rates are always changing, your crypto wallet app should also stay updated and calculate transaction fees according to the latest rates. This is especially important in the case of various transactions, from the same digital currencies, and different digital currencies, to fiat and digital currencies.
Because of blockchain technology, your users can quickly and securely send and receive digital currencies through your crypto app. As each completed transaction is transferred to the blockchain network, users can also check their balance and transaction history.
With this feature, users can enjoy a faster and easier transaction process. This is because they have a way to manage all addresses that are often used.
With secure payment gateways incorporated into your wallet app, users can effectively buy and sell digital assets without any trouble.
Through this feature, users are automatically logged out from the app after a certain time. This gives added security when using the crypto wallet app.
Besides knowing the benefits of a crypto wallet, understanding hot vs cold wallets, and exploring volume blockchain wallets, you need the right planning and guidance to successfully develop blockchain wallet apps. Let QASource take care of your blockchain testing needs. Contact us today for pricing details.