Practical Guide to Crypto Wallet Development

Practical Guide to Crypto Wallet Development in 2022

There is a massive demand for crypto wallet app development as the number of currencies increases rapidly. More than 70 million people used blockchain.com wallets to store, send or receive coins as of March 2021, and there are over 200 applications in Google Play and the App Store.

Do You Need To Develop A Cryptocurrency Wallet App?

There are two essential things to know about your wallet: public and private keys.

  1. The public key is similar to your bank account. You can share this number with others to send or receive money.
  2. The private key is more like your personal identification number (PIN). This private passcode to the crypto wallet allows you to manage your coins. The most critical concern in any crypto wallet is to keep your private key completely encrypted.

Every year the number of people investing in cryptocurrency grows. Bitcoin and Ethereum's success has had the most significant influence on this market to date. Those cryptos came with their wallets, but people want to invest in various cryptocurrencies, and there are more than 6,000 different coins in the market. People need a wallet to manage multiple cryptocurrencies in one cryptocurrency application.

Businesses have also started integrating their crypto wallets into their payment systems, and there is also considerable demand for mobile cryptocurrency wallets to ensure fast crypto transfer.

The other reason for crypto wallet development is to ensure anonymous, encrypted and decentralized transactions for any coin.

MORE ON TOPIC: HOW TO CREATE AN EASY-TO-USE CRYPTOCURRENCY WALLET APP

Crypto Wallet Types and Examples

The first thing to consider before getting involved in crypto wallet development is the type of cryptocurrency application you want to build.

There are cold wallets, where hardware stores your keys offline, and hot wallets, which are software-based and more user-friendly, but less secure.

There are different types of hot wallets you should be familiar with before developing your own, including

  • desktop wallets that you can access from your desktop
  • hardware wallets that use special devices to store the keys
  • mobile wallets that allow you to process payment by scanning a QR-code or using touch-to-pay and Near Field Communication (NFC) technologies
  • web wallets that function in a cloud and enable you to access your crypto anywhere

You can define a wallet by governance. It can be a centralized or decentralized digital wallet for cryptocurrency.

Another type of wallet can be determined by coin availability. Not all crypto wallets support all coins because they exist in different blockchains. For example, you can trade Bitcoin directly only in its network. If you want to work with various networks, you need to consider multi-cryptocurrency wallet development.

How to Start Crypto Wallet Development

After defining that you need to develop your crypto wallet and deciding what type of future app you want to build, you can focus on cryptocurrency wallet development. Below we outline the most significant steps in crypto wallet development.

1. Learn About Crypto

Before starting coding, you need to understand the technology. At this stage, you need to decide on features you want to have in your wallet, the tech stack you will use and the type of wallet you need for your coins.

2. Use Open Source Libraries

Most crypto is open source, which means that you can use libraries to develop your wallet. For instance, the Coinbase software development kit (SDK) allows you to create a wallet for iOS and Android platforms, and it works with Java, Python and Ruby.

3. Define The Budget

Setting a budget for the development process is also necessary. After defining the wallet type and the features you want to include, you can start budgeting for the development.

4. Use API and the Right Cloud Platform

Implementing application programming interfaces (APIs) is a great way to build a crypto wallet for multiple currencies. It will ensure easy synchronization with any blockchain network. For instance, two of the most popular APIs you can choose for your wallet are Coinbaise or Factom. Using APIs will accelerate the development process. Another valuable piece of advice for setting up a cryptocurrency wallet is finding the right cloud platform. In this case, you need to consider a BaaS (Blockchain-as-a-service) provider. Amazon, Azure, Microsoft and others offer this service.

5. Define the Tech Stack

It is also essential to define a technology stack that can help your application succeed. For example, you can choose Node.js or CSS3 if you create a web app wallet. To develop Android apps, you can work with Java or Kotlin. The tech stack depends on the final goals and features of your crypto wallet development.

6. Build an MVP

The next step in wallet development is to create a prototype or MVP. At this stage, you may discover issues in features to be rebuilt or changed. Moreover, your team needs to focus on technical questions for app development. For instance, you need to define how you will open token addresses - automatically for all listed coins, only for some cryptos or at the user request? Or how to explain the transaction fees to users. You also need to check the user interface/user experience (UI/UX) options during MVP testing.

7. Ensure App Security

Crypto wallet security is a big consideration during the app development process. You need to learn how to secure the wallet and the client's crypto. Moreover, you can add extra protection like biometrics to open the app with the help of the face, retina or fingerprints. Also, check if your app has two-factor authentication, and you need to have a wallet backup and provide continuous security updates.

8. Deploy and Support

The final stage is product deployment. It means that you need to provide professional wallet support once the product is launched. You need to ensure that all cryptocurrency wallet development services work correctly at this stage.

There is also one other crucial step in the crypto wallet development process: you need to find a reliable development team for this task. To do so, research a provider’s experience in digital financial solutions and blockchain technology.

Final Thoughts

Cryptocurrency wallet development is a complicated process, and there are many things you need to consider before starting. You will face some common challenges for crypto development because cryptocurrency rules are different in various countries. Also, you will need to integrate your wallet with legacy systems and ensure a high level of security.

The best way to get advanced fintech solutions is to find a reliable IT development company with a similar experience. Cprime Studios has worked with blockchain technologies for the last few years and has many unique cases in its portfolio. If you consider creating a crypto wallet, you should contact our specialists for consultation and development.