Are you thinking about developing a cryptocurrency wallet app? There are a few things you need to know first.
On the one hand, the process of creating a cryptocurrency wallet application does not differ from the usual app development. During its development, you have to go through all the basic stages of creating a standard mobile app, from concept creation to quality control and testing. But on the other hand, a cryptocurrency app requires much more attention to cybersecurity.
Keep reading to check out what a cryptocurrency wallet is, how it works, and – most importantly – what are 5 things you absolutely must consider while developing your crypto wallet app.
What Is a Cryptocurrency Wallet
A cryptocurrency wallet is a digital wallet used to make cryptocurrency transactions inside the blockchain.
How Does a Cryptocurrency Wallet Work
Moving cryptocurrencies from and to your crypto wallet requires a private key and a public key The private key is confidential and acts as the PIN to access your wallet. It allows you to authorise the transfer of funds from your wallet. On the other hand, the public key is your wallet’s address, which you can share with anyone who wants to send you cryptocurrency.
So if you want to receive cryptocurrencies from a person or institution, you should provide your address to the sender. But the cryptocurrency you get is not stored directly in this digital wallet. Instead, it is safely kept in the blockchain.
5 Things You Should Consider While Developing a Crypto Wallet Application
Know Key Concepts
Words like blockchain, cryptography, and cryptocurrency have to be more than buzzwords. It is fundamental that you have a deep understanding of what each of these concepts is and how they are related,
Only by knowing as much as you can about these concepts can you devote yourself to developing a great cryptocurrency wallet app.
Understand the Mechanism of Crypto Wallet
Study the mechanism of a crypto wallet app to get in-depth knowledge of the entire process, from the moment a user downloads the app to the transactions. Only then can you develop an app that meets the needs of crypto users.
Know the Types of Cryptocurrency Wallets
Crypto wallets are not all the same, and that is something you must know too.
We can divide these digital wallets into two types depending on whether they are connected to the Internet: hot wallet and cold wallet.
A cold wallet is a hardware wallet. It stores your public and private keys offline in a USB-like device that you plug into a computer. Another form of cold storage is paper wallets, which were more popular in the early days of blockchain. They contain your keys in printing.
As they are never exposed to the Internet, they are not susceptible to cyberattacks. That fact makes many crypto wallet owners deem it safer. However, they are easier to lose or have stolen or destroyed, like any physical object.
Hot wallets, on the other hand, are connected to the internet and are thus remotely accessible. They are virtual and considered more convenient.
Whoever has a hot wallet, has their private and public keys stored in a desktop software program or a mobile app or web app that can be installed on any compatible device. Due to the inherent risk of a cyberattack, crypto owners use hot wallets to store small amounts of assets.
Implement Essential Features Required in Crypto Wallet Apps
The success of your app depends largely on the quality of its features. You must understand and include useful functionalities that make crypto owners comfortable using your app.
Some basic features you should include in your app are:
- Start by making the app secure with multi-factor authentication.
- Allow users to connect directly to their bank account using card details to make transactions quicker and easier.
- Show users real-time updates on pricing information in a visually pleasant manner
- Create QR code flexibility to scan transactions and paper wallets
- Provide information about balance and transaction history
- Include push notifications with relevant information such as, for example, price fluctuations, technical problems, and updates
Focus on Privacy and Security
These are two big words in the world of cryptocurrency. Users expect nothing less than to be anonymous and to have a secure structure for their cryptocurrency. Implement features that may grant users privacy and security, such as the possibility to use a different wallet address for every transaction.
Cryptocurrency wallets are digital wallets that allow you to perform cryptocurrency transactions. They can be designed as an app or USB-like device.
If you are interested in crypto wallet app development, be sure to have in-depth knowledge of blockchain, crypto wallet mechanism and the best features to implement.