If you are planning to launch a customizable crypto wallet for your business. Then you have landed in the correct place. After the tremendous growth of cryptocurrencies, many people started to trade major cryptos. With the increasing number of crypto users, many companies started to accept crypto as their payments. So there is an essential need for cryptocurrency wallet development. Not only for payments but also it is an essential feature in the crypto exchange.
Presently, the cryptocurrency exchange business is ranking first in the list of profitable blockchain businesses in 2020 by Forbes. Also, many people have potentially raised their wealth through a cryptocurrency exchange. There are so many cryptocurrency exchanges that are providing top-notch facilities and features. But some crypto trading platforms lag with some important features that are needed for the best crypto exchange. One such important feature is a cryptocurrency wallet. So a cryptocurrency wallet development plays an important role in all the crypto exchanges.
This blog navigates to the complete guide of cryptocurrency wallet development with its types, features, and benefits.
What is a Cryptocurrency wallet?
A cryptocurrency wallet is a software program or a feature enabled in the crypto exchange platform. This crypto wallet is mostly used to store, receive, and transfer all virtual cryptocurrencies. Such as bitcoin, ethereum, litecoin, bitcoin cash, EOS, and other digital currencies. It allows users to spend, track, and earn cryptos. Also, it is used to monitor your crypto balance. It helps to transfer cryptocurrencies from one wallet address to another securely.
If you have a crypto exchange platform, then you definitely need a cryptocurrency wallet. Without a wallet, there is no use of trading cryptocurrencies in exchange platforms. Else, You can develop a customizable crypto wallet and you can offer your crypto wallet services to any crypto exchange. This crypto wallet has both the private keys and public keys that interact with different blockchains for high-end secured transactions.
Whenever you transfer the cryptos from your wallet, you should enter the private key code. The private key has numbers and alphabets as a passcode. Sharing the private key code is not secure so save your private keys in any secured document. whereas the public key acts as an account number for your crypto wallet. Also, these kinds of keys are directly connected to your wallet balance. In cryptocurrency wallet development, there are three types of wallet storage. They are
A hot wallet is mostly connected to the internet. So without the internet, you can not access this kind of crypto wallet. Also, it is mostly used by business class people and investors. Because hot wallets provide faster transactions in a hassle-free manner. It also stores and receives cryptocurrencies. As it is an online-based wallet, you can store a wide range of cryptos on the internet.
The cold wallets are inverse to the hot wallets. Because cold wallets are offline storage and there is no need for the internet. This kind of wallet is mainly used by startups and entrepreneurs. because it offers secure crypto transactions and avoids hacking and scams.
A warm wallet is a combo of both the hot and cold wallets. This wallet has cold wallet security systems and a hot wallet’s transaction methods. When there is no internet, then it acts as a cold wallet. Whereas when it has the internet, then it acts as a hot wallet.
Ok, with patience read continuously without a pause. Now, let us see.
How does a Cryptocurrency wallet work?
A Crypto Wallet has a wallet address similar to a bank account number. So there is no risk in giving the account number to transfer your funds. Just like in crypto space, if you are looking to transfer your cryptos. Then you should give them your crypto wallet address. The wallet address will have a combo of both numbers and alphabets format. Similar to this: 2HGT5rGKh89JOIkl90qmjYHlxc134rQHJ78Po
Each Crypto wallet will have a unique Private Key and Public Key to perform transactions. A private key will allow access to the funds with the respective crypto wallet address. In simple words, you want to transfer your crypto from your account to another account. Then you need to enter your private key as a password for transferring.
On the other hand, Public keys are automatically linked to the crypto wallet address. This process is completely done using the Hashed version. A hashed format that allows the sequence of letters and numbers as an input which will be encrypted. The final output of this encoded version is known as the public key. To make it simple and easy. Let us see an example
Public Keys: 99Yugujf775YKHKio9078hjkWQ
Private Keys: 1W1YkqIOG7857UP67hvhwmklr2568YTRVnvxq
These two keys may differ from human eyes. But not to Blockchain Technology. This is how private and public keys are linked to each other. When someone wants to send any crypto, then the receiver must have the private key. But it should match the public address of the sender. When both the private keys and public keys match, the crypto transaction takes place.
Now, let us look at…
Different Types of Cryptocurrency wallets
There are five major types of crypto wallets in the marketplace and each has its own functionalities.
The Web wallet is considered as a hot wallet. because this wallet works only through the internet. It also stores, receives and transfers all the cryptos and tokens. Web wallets are also called cloud wallets in the crypto marketplace. This kind of wallet can be mostly accessed through various web browsers. such as opera mini, firefox, google chrome, and internet explorer. Also, this wallet acts as both the hosted wallet and non-hosted wallets. But you can prefer the non-hosted wallets for crypto wallet development. Because here you can store your private and public keys. Also, it has different options on how to save those keys. You can run a non-hosted web wallet on your server. For example MyEther wallet.
Mobile wallets are completely accessible only through smartphones. It acts like a mobile app on both Android and IOS devices. It is a kind of a hot wallet that stores all the cryptocurrencies in online storage through the internet. Also, this wallet stores required payment card details on your mobile. So this kind of wallet is very easy to use and provides faster transactions. This wallet can easily backup and restore the features. It has a QR code facility to perform transactions. So that wallet users can instantly transact the cryptocurrencies in a hassle-free manner. But this wallet suffers from some security issues. So you need to keep your wallet secured by integrating advanced security features. Examples of mobile wallets: coinomi, green address, and Mycelium.
A Paper wallet comes under the storage type of cold wallet. So this wallet refers to the offline storage of cryptos. It provides high-level security for storing a wide range of digital currencies. Paper wallets are mostly used to develop physical copies of both the private keys and the public keys. So it stores all your cryptocurrencies and tokens on a single printed sheet. This wallet also has the QR code for the crypto transaction. however, it is just a sheet of paper and it can be easily damaged. So you need to keep them safe in any file But most of the crypto users use paper wallets for security potential benefits.
A Desktop wallet is a kind of hot wallet. It is a software that you can install on your desktop or laptop. This wallet helps you to store the cryptos safely on your desktop or laptop. Unless it is connected to the internet this wallet also acts as a cold wallet. You can also enable strong firewall protection to avoid hacks and scams. Because if your PC is attacked by any virus or some internal damage. Then there is a possibility of losing all your crypto coins. Example of desktop wallets: Electrum, Armory Copay, and Bitcoin core.
This is one of the safest crypto wallets in the marketplace. A hardware wallet is a kind of cold wallet storage and it looks like a USB storage device. So it stores your private and public keys in offline storage. This wallet stores all your cryptocurrencies in a USB device. So your cryptos will be safe and secure in the device. But losing or damaging the device might lead to the loss of your cryptos. Also, this kind of wallet is so expensive. Examples of hardware wallets: Ledger Nano S and Trezor.
These are the wallet types that are existing in the marketplace. You can choose any type for your bitcoin wallet app development. Now, let us see…
How to Develop a Secure Cryptocurrency Wallet?
Developing a customizable cryptocurrency wallet is not a difficult task. It is very simple, only if you follow the given steps.
Step 1: you must determine the design of your crypto wallet. Also, determine how many different cryptocurrencies can be received in your crypto wallet.
Step 2: hire the top-rated crypto wallet developer with strong technical knowledge in blockchain and bitcoin wallet app development.
Step 3: Generate the private key and public key codes for your own cryptocurrency wallet
Step 4: Then find a top-notch crypto wallet development service provider. The solution provider must provide secure crypto wallet development services.
Step 5: By using the best crypto wallet development services you can easily develop your own customizable crypto wallet.
But choosing the best crypto wallet development service provider is more essential for launching your secured crypto wallet.
Core Features of Cryptocurrency Wallet Development
Develop your own cryptocurrency wallet with trending features that will help to grab more users. Here are the following set of features that we enable in our cryptocurrency wallet development.
- Multi-currency support
- Biometric authentication
- 2F verification
- Automated session logout
- Multi payment gateways
- Password-protected access
- Multi-signature vault
- QR code scanner
- Home screen customization
- Multi-Platform compatibility
These are the essential features of the bitcoin wallet app development. Integrating all these features will make your crypto wallet to rank in the top position in the market.
Benefits of Cryptocurrency Wallet Development
- Users can perform secure transactions with the help of private and public keys
- If you have a separate crypto exchange then you can easily integrate into your exchange
- It provides fast and secure transactions.
- Using cold wallet type storage will safeguard from hackers and fraudulent activities.
- Your crypto balance can not be monitored by any central authority or government
- Crypto wallets are basically decentralized in nature. So users can perform high-end secured transactions.
- It supports multiple cryptocurrencies.
You get all these benefits by choosing the finest crypto wallet development service provider. One such best crypto wallet service provider in the crypto space is Coinsclone.
Why Choose Coinsclone For Crypto Wallet Development?
It is always good to choose a pro rather than choosing a noob. Yes, it fits for everything also with the cryptocurrency wallet development too. Because as far as crypto exchange is concerned, a crypto wallet is a vital feature of it. Developing one such feature from the trusted crypto wallet development service provider is more advisable. That is why we stand first when it comes to the best crypto wallet development service provider.
In Coinsclone, we have delivered our crypto products to 100+ global customers. The perfection and the dedication in developing products are making us have a pipeline of projects. This is only because of the dedicative service that we provide even after the product deployment. It is like a golden opportunity that you are having right now. Because you have landed in the right place for making your cryptocurrency wallet. Never miss this opportunity. Just make sure of your desire to make a crypto wallet with us here.
What are you waiting for?. Talk to our experts and create your Customozible Cryptocurrency Wallet now!.