In this digital era, many people are aware of blockchain and bitcoin. The total bitcoin supply halves every four years which is known as bitcoin halving. But the catch here is not all the bitcoins are actively available since most of them have been lost. According to a recent report, a blockchain analysis company reported that more than 4 million bitcoins are lost.
There are several reasons like some of them belong to the owners who are passed away or gone. Also, some of them belong to Satoshi(founder of bitcoin) itself. But the notable factor is the majority of people lost their bitcoins and altcoins due to some mistakes in money management. This is why cryptocurrency wallet solutions and crypto wallet development services are becoming essential as the value of bitcoins increases every single day.
The first crypto wallet was initially developed by Satoshi Nakamoto, with simple wallet features. As the bitcoin and other cryptocurrency prices started enhancing, many startups and entrepreneurs understood the importance of multi-crypto wallet development.
This article will guide everything you need to know about crypto wallet solutions and their importance. Now, let us begin with
What is a Cryptocurrency Wallet?
A Crypto Wallet is a paramount feature integrated into a crypto exchange that helps to store your private and public keys. By using a crypto wallet, one can send or receive bitcoins and other cryptocurrencies through Blockchain as well as monitor the balance. Basically, the crypto wallet supports all major cryptocurrencies that are available in the crypto marketplace. Such as ethereum, litecoin, ripple, EOS, bitcoin, bitcoin cash, and more.
Without a crypto wallet, one can not store and receive digital currencies. Thus, there is a massive demand for the best cryptocurrency wallet development service. Even it is one of the essential features to create a cryptocurrency exchange platform. In the crypto wallet, there are three different storage types. Such as a warm wallet, cold wallet, and hot wallet. Hot wallets are online wallets, so one can store their cryptocurrencies online. Whereas cold wallets are offline wallet storage, so one can store and receive cryptocurrencies offline. Finally, a warm wallet is a combination of both hot and cold wallets.
For creating a crypto wallet app, you need to choose the type of crypto wallet. Because it is a very crucial one for building a bitcoin wallet app. So now, let us see…
Types of Crypto Wallets
Cryptocurrency wallets are categorized into five distinct types. Such as
- Hardware wallets
- Paper wallets
- Desktop wallets
- Mobile wallets
- Web wallets
Let us see the above types of crypto wallets in a detail
A hardware wallet is a kind of warm wallet. So it is a combination of the hot and cold wallet storage type. Hardware Wallets completely differ from software wallets. This kind of wallet stores a user’s private keys on a hardware device like a USB. Though these wallets can perform crypto transactions online, those cryptos are stored offline for security purposes. Hardware wallets are compatible with several website interfaces. Also, they can support multiple cryptocurrencies. Users just need to plug in their device to any internet-enabled device, enter a pin, send currency and confirm them. So the transaction process is simple in hardware wallets, but the security will be high. Some great examples of hardware wallets are Trezor, keepkey, and Ledger Nanos.
Paper wallets are completely a cold wallet storage type. Paper wallets are very easy to use and provide high-end security for your cryptocurrencies. This kind of wallet refers to the physical copy or printout of your public and private keys. A paper wallet is a software that is used to generate a pair of keys that are then printed. Transferring bitcoins and other altcoins to your paper wallets is completely accomplished by the transfer of funds from the web wallet to the public address shown on the paper wallet. However, it is just a piece of paper so there is a possibility of getting damaged easily. The below image will be a great example of a paper wallet.
(image source: my ether wallet)
Desktop wallets are for the laptop and computers where the software is installed. You can download and install this kind of crypto wallet on your computer. So that you can store your private keys on your hard disk. This type of wallet is more secure than online and mobile wallets. Because they don’t rely on third parties for their data and very hard to hack. However, desktop wallets will be the best crypto wallet solution for those who trade small amounts of cryptocurrencies from their computers. But you can also use these types of wallets even without internet access. Examples of desktop wallets are electrum, exodus, and copay.
Mobile wallets are online wallets that are completely accessible from mobile devices like Android, iOS. It is a kind of crypto wallet mobile application. Where you can easily store, receive, and transfer cryptos through your mobile devices. This type of wallet has high-end security protocols and comes with a QR functionality that provides quick and easy transactions. Examples of mobile wallets are free wallets, edge, atomic wallets, and Jaxx.
Web wallets are the frequent hot wallets that are connected to the internet. Thus, when a user needs to send or receive the bitcoin or altcoin, the device must be connected to the web. These wallets are compatible with all the major platforms. Such as computers, laptops, phones and render ease of access to the desired cryptocurrencies and tokens. These wallets are sometimes referred to as Cloud wallets. Examples of web wallets are coinbase, Lumi wallet, and Xapo
Now, let us see…
How does a Crypto Wallet work?
Initially, cryptocurrency wallets are utterly different from physical wallets. Instead of storing money, crypto wallets will store public keys and private keys. Private keys are similar to a PIN or passcode which is accessed by your bank account. Whereas public keys are similar to the bank account numbers.
When you send any cryptocurrency, you are sending the value in the form of a transaction. So thereby you are transferring the ownership of your crypto to the recipient. For the recipient, the private keys should easily match with the sender’s one. With this, one can easily access the crypto coins.
The ownership of private keys gives total access to the corresponding public keys. If any other third party holds your private keys, they might control your cryptocurrencies. So keep the private keys securely without sharing with other individuals. These crypto wallets will support Web, IOS, and Android devices. Also, you can store and receive multiple cryptocurrencies without any hassle.
Now, you have a question on your mind…
Is it Possible to Store all Cryptos in a Single Crypto wallet?
It is one of the ideal questions to be asked. It depends on the types of crypto coins you hold. For example, if you have a Bitcoin, then you need to have a wallet that is compatible with it. So many startups approached multi-cryptocurrency wallet development services. This service can help you to develop a crypto wallet that stores a diverse set of cryptos. Popular Bitcoin Trading Platforms like Binance, Coinbase, Localbitcoins usually support the best multi-cryptocurrency wallet for their users.
Superfine Features of Cryptocurrency Wallet Development
Features will play a major role to make a crypto wallet successful in the market. Here we list some exclusive features that you must enable in your cryptocurrency wallet.
- My profile
- Home screen customization
- Cross-platform compatibility (Android, iOS, and Desktop)
- Easy portfolio management
- In-chat transactions
- User-friendly interface
- QR code scanner
- KYC verification
- Multi-crypto asset
- Wallet deposit/withdraw functionality
- Transaction History
- Deposit & Withdraw History
- Enhanced privacy
- Support Ticket Submission
By integrating these features, you can create a feature-rich crypto wallet app. Also, it helps to attract the n-number of crypto users worldwide. All you need to do is, choose the best crypto wallet solution provider. So now, let us see…
How to choose the Best Crypto Wallet Solution provider?
Here we list some essential factors to consider while choosing the crypto wallet solution provider.
Mobile Device Support
Currently, there are more than 5 billion smartphone users across the world. Many crypto traders make use of mobile devices to perform trading. Thus, your cryptocurrency wallets must support this feature. The bitcoin wallet application should be supportive for both the IOS and Android mobile devices. So check whether they offer this feature in their crypto wallet development service.
Simple yet intuitive interface
Every user must be able to transfer bitcoins and other altcoins either by copy-pasting the address or scanning the QR code. Since most of the crypto payment processors have made the process without any hassle. So users just need to make a few clicks to perform hassle-free transactions. So check whether they provide an intuitive interface in the crypto wallet.
Check the security mechanism
In general, opening a crypto wallet app will take only a few seconds. but it must require some security functionalities like two-factor authentication, PIN code, Face ID, or a fingerprint. So check whether the solution provider offers high-end security features while creating a crypto wallet.
Supporting Multiple Cryptocurrencies
Most of the requirement for users is to have an exotic feature of supporting multiple cryptocurrencies. Such as Bitcoin, Ethereum, Litecoins, Ripple, and more. In addition to these characteristics, it must be able to perform secure and instant crypto transactions.
Feedbacks and Reviews
It is one of the essential factors to consider while choosing the best crypto wallet solution provider. Check out the reputed client’s feedback and reviews of the crypto wallet solution provider. Because it would help you to have clarity on your mind before creating a wallet from the wallet solution provider.
Check whether they are providing effective 24/7 customer support. If you face any issues or errors, they must be available to provide an instant solution.
These are factors you need to consider for choosing the finest crypto wallet solution provider. Now, you might ask a question like…
Who Offers the Best Crypto Wallet Solution?
When it comes to the best crypto wallet solution, Coinsclone will be in the first position. Coinsclone, the top-rated crypto wallet solution provider in the crypto space. We are specialized in offering cryptocurrency wallet app development services for Android, IOS, and web. We have in-depth experienced crypto wallet mobile app developers to develop and deploy the wallet app at the desired time. Coinsclone gives priority to security features. Any cryptocurrency wallets which are connected to the internet will sometimes remain vulnerable. Since attackers can make use of the advanced technologies for hacking. So the crypto wallet must be updated with the tightened security mechanisms.
Here are the following set of security features that we integrate into our Cryptocurrency Wallet development
- Multi-signature vault
- Two-factor authentication
- Automated session logout
- Password-protected access
- Email verification
- Backup phrase
- Personal Identification Number (PIN)
If you are a person interested to develop a crypto wallet app for android, ios, and the web. Then it is essential to understand the importance of the best cryptocurrency wallets in the industry. Be it any type of crypto wallet, we excel in providing the best crypto wallet development services for android, ios, and the web.
If you still have any queries on crypto wallet solution, then you can contact us right now!