Crypto prices are soaring. As more people invest in digital currencies, Ethereum and Bitcoin hit all-time highs. Every year, new digital currency wallets appear, giving investors more alternatives. All of this indicates the demand for cryptocurrency wallet development services will increase.
Various wallets hold cryptocurrencies. Each bitcoin wallet stores a private key, like a password. It is best to recharge a digital wallet with cryptocurrency via a cryptocurrency exchange (such as IDEC Gemini or Coinbase). Robinhood and Paypal offer ways to buy, store, and sell cryptocurrencies.
Protected by encryption, cryptocurrencies can’t be counterfeited or double-spent. Most cryptocurrencies employ blockchain-based decentralized ledgers and networks. Cryptocurrencies aren’t issued by governments, making them immune to global policy.
How Do Bitcoin Wallets Work?
- The wallet stores cryptocurrency transactions in the blockchain.
- The cryptocurrency wallet comprises public and private keys.
- When a wallet user delivers cryptocurrency to another user, he transfers ownership.
- Only users whose private Key matches the Public Key can send digital currencies.
- The private Key validates transactions while the public Key receives payments.
1. Desktop Wallets
Desktop cryptocurrency wallets can only be accessed on a desktop or laptop. Most desktop wallets are secure, but cyberattacks can compromise them. Users lose all funds via a virus or hack. Bitcoin Knots and Armory are desktop wallets.
Cryptocurrency virtual wallets are cloud-based and accessible from any device. Blockchain makes online private key storage safer and easier. As third-party services, cloud services are subject to hacks and theft.
3. Mobile Wallets
These cryptocurrency wallets are app-accessible. Many retailers accept mobile cryptocurrency wallets. Mobile wallets have less cold storage than desktop ones. Bither, Green Address, and BitGo are popular mobile wallets.
Unlike mobile, desktop, and virtual wallets, hardware wallets keep private keys offline. The keys are held on a USB. These bitcoin wallets have strong security and can make online transactions. Hardware wallets support digital currency and web interfaces. Ledger Nano S, Keep Key, and Trezor is hardware wallets.
5. Paper Wallets
Paper cryptocurrency wallets are the most secure. Software prints private and public keys. Software wallet holders can quickly transfer funds to paper wallets. Scanning QR codes move friends to software wallets. Bitaddress is a paper wallet.
Market Crypto Trends
Bitcoin was the first cryptocurrency, and all others are called Altcoins. Cryptocurrencies will disrupt the monetary system as the best alternative to fiat currency.
The cryptocurrency market was worth $1.03 billion in 2019, per Markets & Markets. The market is expected to reach $1.40 billion by 2024, with a CAGR of 6.18 percent. High cross-border remittance costs, currency value swings, crypto venture capital expansion, and distributed ledger technology transparency have influenced market growth.
2021’s Top Crypto Wallets
Most cryptocurrency wallets are software or hardware.
Cryptocurrency Hardware Wallets
1. Nano S
The Ledger Company has achieved progress since its 2014’s launch. This hardware wallet is for crypto enthusiasts. Ledger Nano S has BOLOS and 2-factor authentication.
Trezor created the first cryptographic hardware wallet. A great cyber security team and cryptocurrency proponents conceived and built Trezor One in the Czech Republic. Trezor means “vault” in Czech. Trezor One uses two-factor authentication like Ledger Nano S.
Cryptocurrency Software Wallets
Coinbase is establishing an open financial infrastructure by enabling Bitcoin access anywhere. Thirty-five million users trust Coinbase in 100 countries.
Gemini is a smartphone and PC-accessible bitcoin exchange. App users can track real-time cryptocurrency prices. The program lets users establish price notifications to respond to price variations.
Wallet Development Steps
Creating a user-friendly and secure bitcoin wallet is difficult. Developers of bitcoin wallets must know which type to construct. Wallet development often follows these steps:
1. Define app Kind and Concept
Several cryptocurrency wallet apps exist, so don’t recreate the wheel. Your app idea may be comparable to existing bitcoin wallets; you can learn from them to speed up development.
The following questions can help you define a crowdfunding app.
- Which cryptocurrency wallet do you want to build?
- What’s the wallet’s USP?
- Which coins will your app support?
- How will your app stand out?
2. Assess the Market Scenario
When you know which cryptocurrency app to develop, research the market. In prior sections of this post, I discussed bitcoin wallet kinds, trends, and top e-wallets.
I recommend doing a SWOT analysis to win the competition. Try to recreate leading bitcoin wallet apps’ USPs.
3. UI/UX Design
FinTech app design is difficult. Many FinTech developers skip mockups for UI/UX design. FinTech app development requires mockups. Wireframes and mockups help FinTech companies discover user flow and design user-friendly IA. Mockingbot and Axure are used for wireframing and mockups.
4. Develop Backend Architecture
The technological architecture of your cryptocurrency app affects performance. The technical architecture includes UI, database, workflow, and service tools. The following diagram explains technological architecture.
When your bitcoin app’s architecture is complete, build the backend. Backend development takes time because developers must set up the development environment and construct internal and external APIs.
You either employ a SaaS provider or construct the full infrastructure for backend development. I like using a ready-to-implement SaaS solution i.e. Cloudkit, AWS Mobile Hub, and Firebase. SaaS software saves our clients time and money. Custom apps with strict criteria must be built from scratch.
Other Wallet Backend Development Recommendations:
iOS and Android Bitcoin libraries. Since most cryptocurrencies are open source, you don’t need to reinvent the wallet. Use Coinbase or Bitcoin SDK. We can recommend the finest app development technology based on your bitcoin wallet.
Sync your wallet using APIs. Distributed ledger APIs synchronize cryptocurrency wallets with the blockchain. Factom, Bitcore, and Coinbase are popular APIs.
Include payment. If you want app users to pay using cryptocurrency, enable it. Your app can accept cryptocurrency payments with BitPay or BitPOS.
5. Frontend Development
First, a responsive design. When consumers input a command, your app should respond instantly. Excellent user experience is needed. The cryptocurrency wallet front must reliably demonstrate crypto benefits. The wallet will access real-time crypto market data, which is vital for their decision-making.
Software development life cycles must include testing. Testing is part of any software development sprint, no matter the approach. Quality analysts review app functionality and code and compare it to the requirement specification.
After the first testing spring, the QA team sends the software code back to development to fix errors/bugs. After making modifications, the development team delivers the final document to QA. QA must approve the app before it’s released.
Also, Check – Why Should You Invest In IPO?
Cryptocurrency Wallet Essentials
Cryptocurrency wallets are like other FinTech apps. Starting from the flawless registration procedure, followed by KYC and AML compliances, the bitcoin app would require you to pay substantial attention to the user experience because the app abandonment rate is high for FinTech apps.
Unlike investment apps, trading and exchange are tough to execute. Real-time updates for bitcoin apps require integration with the ecosystem.
However, Consider Adding These Features To Your Cryptocurrency Wallet App:
- Onboarding smoothly
- Administrator accounts
- Manage crypto (send, receive, and store cryptocurrencies)
- Trading and exchanging cryptocurrency
Cryptocurrencies will dominate digital payments. Bitcoin’s ascent has affected global finance. Several research shows that the cryptocurrency sector will keep growing. Keeping this rise in mind, there would be an increase in the demand for bitcoin wallet development. If you’re seeking a Blockchain Wallet Development Company with a substantial understanding of developing technology solutions for the banking and financial business, feel free to reach out to us.