Wallets are pieces of software that allow you to see cryptocurrency balances and conduct transactions, just like the other digital wallets. Each wallet type differs slightly, but in general, every given wallet will support one or more cryptocurrencies and will be able to store one or more cryptocurrency-specific “public addresses.”
Public addresses are similar to cryptocurrency-specific account numbers in that they can be used to receive a certain form of crypto (for example a Bitcoin address) and can be shared publicly. Each address corresponds to all transactions on a coin’s blockchain that is associated with that address. A wallet allows you to examine balances associated with an address and move funds around the blockchain as long as you possess the address.
A wallet is similar to your online bank account platform, your address is similar to your account number, the blockchain is similar to the bank’s ledger and with custodial wallets, the custodian is similar to your banker.
Nowadays more and more people are availing mobile app development services to get assistance for cryptocurrency wallet apps.
Various Types of Crypto Wallets
Depending on what users intend to do with cryptocurrency, there are a variety of crypto wallet alternatives available in the market.
Many long-term crypto investors, for example, intend to keep the wallet for a longer period of time. As a result, customers may opt for a wallet with excellent security features. Users who actively trade bitcoins, on the other hand, may seek convenience and quickness.
Cold and hot crypto wallets are distinguished by whether or not they can be connected to the Internet.
- Cold Wallet
The hardware wallets are the ones you’re looking for. They keep your keys on a device that isn’t connected to the Internet. Many popular cold storage wallets resemble USB drives. Paper wallets, which print out information about your public and private keys on a sheet of paper, are sometimes used as cold storage.
Many cryptocurrency enthusiasts believe that cold storage is the greatest solution for safeguarding your digital assets. Because they are offline, these wallets are thought to be the most difficult to hack.
- Hot Wallet
These wallets are software-based. They are more user-friendly but slightly less secure than cold wallets. A hot wallet can be accessed by downloading a software program to your computer desktop or a smartphone app. There are several types of hot wallets, as listed below:
- Desktop Wallets: This is the most frequent type of wallet. Typically, an app that connects directly to the client of a coin. Except in the instance of a virus assault on your computer, desktop wallets are deemed secure.
- Online Wallets: An online wallet is a wallet that is accessible via the internet. Instead of downloading an app, data is hosted on a physical or virtual server.
- Mobile Wallets: A wallet that is controlled by a smartphone app. Mobile wallets typically have the same functionalities as desktop wallets.
- Hardware Wallets: Dedicated hardware designed solely to store and secure cryptocurrency. USB devices are included. These gadgets can go online to conduct transactions and collect data, then go offline for transit and security.
Why Is Cryptocurrency Wallet Development Necessary?
Following the spectacular success of cryptocurrencies such as Bitcoin and Ethereum, an increasing number of people have begun to invest in cryptocurrencies. Several new cryptocurrencies enter the market on a regular basis.
While certain cryptocurrencies, such as Bitcoin and Ethereum, have their crypto wallets, traders who want to invest in many cryptocurrencies hunt for crypto wallets that are interoperable with a variety of other cryptocurrencies.
Aside from that, crypto wallets offer a variety of business applications. Companies can outsource mobile app development to create their cryptocurrency wallets and combine them with payment and other business solutions.
A mobile cryptocurrency wallet is a popular type of blockchain wallet. Once you have downloaded the mobile application on your smartphone, you can use it anywhere, including physical stores.
Crypto Wallet | Features
Here are the crucial characteristics that any crypto wallet app must have.
- Authorisation of Users
Because of the popularity and importance of cryptocurrencies, wallet apps are vulnerable to a variety of security threats. As a result, it’s always a good idea to supplement your crypto wallet app’s user authentication with two-factor or multi-factor authentication (2FA or MFA). The 2FA or MFA adds an extra degree of protection that many non-crypto apps do not supply. This is done in addition to your username and password to increase the security of access to your wallet.
- Various Cryptocurrencies
More than one cryptocurrency must be supported by your wallet. It is due to the fact that numerous different currencies are added on a regular basis and their values fluctuate. You shouldn’t keep many different wallets to store your cryptos. Your cryptocurrency wallet app must enable you to deal in many currencies at the same time.
- Importation of Paper Wallets
Your app must allow users to send and receive cryptocurrency by scanning a paper wallet with a QR code.
- Conversion Rates as of Today
No bitcoin wallet app is complete without access to and calculation of transaction fees based on constantly changing exchange rates. This is because the crypto wallet app allows users to transfer money between several modalities, such as the same digital currency, alternative digital currencies or both digital and fiat currencies. This will surely necessitate that they are kept updated on the latest currency value in real-time. Availing mobile app development services can support you in the process.
- Transactions on the Blockchain
The blockchain technology that should underpin your crypto app development is a game-changer. Your users will be able to transmit and receive digital currency through your crypto application in a completely tamper-proof and speedy manner as a result of it. They can also check their available balance as well as the whole transaction history. This is due to the fact that all completed transactions are sent to the blockchain network.
How Much Does It Cost to Develop a Crypto Wallet App?
The estimated cost of developing a crypto wallet app is determined by various aspects, including the company’s size, the complexity of the application, the size of the crypto wallet and its design. However, based on the features you want to add to the wallet, the price will be somewhere between $85k and $95k. You may outsource mobile app development to a reputed company and save on time & cost.
Author Bio: Arjun Solanki is a Business Growth Strategist at a Leading Software Development Company. He has experience in developing and executing digital strategies for large global brands in a variety of business verticals. Apart from working on a long-lasting relationship with customers and boosting business revenue, he is also interested in sharing my knowledge on various technologies and its influence on businesses through effective blog posts and article writing.