Cryptocurrency Wallet Development | A Simple Guide To Launch A Crypto Wallet

Cryptocurrencies have gained traction in the blockchain space, becoming a buzzword. Though this concept has been around us for a long time, it has witnessed potential growth in recent years. Undoubtedly, cryptocurrency goes mainstream, which could continue even in the forthcoming years. Some acceptable and prominent cryptocurrencies are Ethereum, Bitcoin, Litecoin, Ripple, etc. 

“As per a recent report, there are over 8000 digital or virtual or cryptocurrencies available in the present market. (so far in 2021). Moreover, the global crypto market value will ascend from $1.5 trillion in 2021 to $2.3 trillion in the foreseeable future”. 

Here’s the blog for those who want to integrate the crypto wallet into their businesses or launch a crypto wallet of their own. Read on to get to gather valuable information regarding the cryptocurrency wallet development.

Cryptocurrency Wallet - Explained

Did you hear about this before? If not, let’s see what it is about in this section briefly. Cryptocurrency wallet is designed and developed for storing, managing, and transacting cryptocurrencies in a secured and safer way & probably at an instant speed. However, its users could check their previous transactions and thereby keeping an eye on what’s inside their crypto wallets.

How does A Cryptocurrency Wallet work?

So far, you have a clear-cut idea of crypto wallet. Now, it’s time to get to know its functions. To know the functionality, you have to understand private keys and public keys as these two terms play a crucial role. 

A private key is nothing but a password for your crypto wallet, as this has to be kept personal. For layman's understanding, it is like a passkey or password to your debit card for your bank account.   

A public key denotes the crypto wallet address, which is like the account number of your bank account. This could be known in order to make transactions.

However, the cryptocurrency or digital currency, or virtual currency is not stored as a physical form in the wallet. In lieu, it will be saved in the blockchain, which is a decentralized ledger where the data will be stored safely. The users could send and receive cryptocurrencies of their choice when knowing the public key. While transacting, they would receive a prompt saying to enter the private key for authentication. Once done, the transaction will be made successfully. 

Let’s Look At The Varied Types Of Crypto Wallets

The crypto wallet could be categorized mainly into two, namely, hot wallet and cold wallet. Clearly, saying the difference between these is quite understandable easily. 

• Hot Wallets

Hot wallets, also known as hot storage, are connected to the internet. These are prone to hacking as they seem to be less secure. This type of wallet comes with the convenience of storing private keys online. 

The following is the assortment of hot wallets. Catch a glimpse of a brief introductory. 

Desktop Wallet - It is one of the familiar wallets which can be accessed on the desktop or laptop. Desktop wallets will be at higher risk when the desktop is affected by viruses or any other malicious attacks. There are two types of desktop wallets out here: full-node wallets and lightweight/thin wallets. 

Mobile Wallet - This type of wallet can be installed on the mobile device, enabling instant transaction of cryptocurrencies as these will be stored on the account. Seemingly, this will be the simplest approach to make transactions as the convenience of QR scanning is available.

Web Wallet - It can be accessed from a browser like Google Chrome, Safari, or some other ones. There is a chance of hacking as important details like private keys is saved on the cloud.

• Cold Wallets

Cold wallets, also known as hardware wallets or paper wallets, in which the cryptocurrencies will be stored in offline mode. These are more secure as large cryptos can be stored and managed compared to the hot wallets. In this, it significantly denotes the printed copy, which will give details like public keys and private keys.

Security Features To Consider During Cryptocurrency Wallet Development

Listed below are the essential security features which need to be given utmost importance during cryptocurrency wallet development. This will ensure flawless execution of the trading process in a secure way. 

• Automated Session Logout 

This is the indispensable feature that will ensure security. Suppose, in the case of a wallet being kept open for such a long time. The session of the page will be logged out automatically and after that, the users have to enter the credentials again to log in and continue with transactions.

• Denial Of Duplicate Payments

For security purposes and in order to avoid chargebacks, duplicate payments will be detected and then denied. This will considerably increase the trust of the users. 

• Multi-Factor Authentication

Two-Factor Authentication or Multi-Factor Authentication will provide an additional level of security to the crypto wallet. When accessing the crypto wallet, the users have to provide two or more authentication factors.

• Upgraded Security

The white-label cryptocurrency wallet development with the component of upgraded security considerably enhances the security level of the crypto wallet. However, private keys are replaced by confidential mathematical algorithms. So, other than the users, it is not accessible for others to know the private keys.

Phases Involved In Multi-Cryptocurrency Wallet Development

The following are the phases involved in the multi-cryptocurrency wallet development. Beforehand of starting a venture and integrating the crypto wallet into it, let’s go through these phases in order to understand what this is all about.

• The very first phase is, to begin with, planning as you have to decide how your crypto wallet to be. This is in accordance with features and capabilities. So, you have to contemplate which features have to be incorporated, indicating the typical functionality. Ensure to include security features without fail.

• Beforehand of actually go ahead with the implementation, have an idea of how much you will be charged for availing of cryptocurrency wallet development services from a trustable company. The most important thing is choosing a suitable company to fulfill your business expectations.

• Now, continue with the development stages in which the user interface is to be framed, ensuring seamless operation. And most importantly, secured transactions have to be assured. After this, the testing stage has to be given utmost priority as the crypto wallet developed must be free from bugs. 

• The final stage is installing the designed and developed crypto wallet to your business. In the case of downtime, you could avail of technical support and maintenance from the cryptocurrency wallet development company.

Conclusion

Straight to the ending point of this blog, as a concluding thought, developing the crypto wallet is not a complex thing in the blockchain era. However, the white-label cryptocurrency wallet development would ease the process as this comes with the perks of instant launch at a reasonable price compared to developing the crypto wallet right from scratch.