Cryptocurrency Wallet Development Realizes the Future of Payments
The advancement in technology is undeniable. And everything nowadays is available at our fingertips. In recent years, the number of users investing in digital currencies is rising. Thus, Ethereum and Bitcoin always stay at the peak.
Cryptocurrencies can be stored in various wallet options. This article is going to cover everything you need to know about crypto wallet development.
What is Cryptocurrency?
Cryptocurrencies refer to a type of virtual currency that is secured by cryptography.
Almost every cryptocurrency is created on distributed ledgers and makes use of decentralized networks that are further integrated with blockchain wallet development technology.
How do cryptocurrency wallets function?
- The crypto transactions are stored in a blockchain network by the wallet that cannot be altered.
- When a user sends cryptocurrencies to another user, he is transferring the ownership of the coin to the receiver.
- It consists of both private and public keys that are associated with the currencies.
- Only if the private key matches the public key, the users are allowed to make a transfer of their digital coins.
- The private key is used for validating the transaction, whereas the public key is utilized to receive the funds.
Types of cryptocurrency wallets:
The types of cryptocurrency wallets are described below:
- Desktop wallets:
One can easily download desktop wallets on a PC or laptop. Most of them are secure, and the security will not be compromised until there is a cyberattack.
- Virtual wallets:
Based on the cloud, virtual wallets are accessible from any location. With the implementation of blockchain technology, it is safer and convenient but is still vulnerable to cyberattacks.
- Mobile wallets:
Through a mobile app, mobile cryptocurrency wallets can be used. Several retail stores accept payments through this type of wallet.
- Hardware wallets:
These wallets do not store any private keys of the users online. Instead, the keys are stored on a hardware drive.
- Paper wallets:
This type of wallet is considered to be the most secure one. It generates printable private and public keys. It can handle easy fund transfer, and it has a QR code facility for user convenience.
Current Cryptocurrency trends in the market:
The first cryptocurrency was bitcoin. And the ones that are developed after bitcoin are often called Altcoins, which serve as the best alternative to fiat currency.
The fluctuation of monetary value, investment growth in the capital, cross-border remittance, and transparency have drastically influenced the market growth.
The leading wallets in 2021:
According to popular providers of wallet development services, Cryptocurrency wallets can be divided into two major categories, namely,
- Hardware wallet:
The hardware wallets for cryptocurrency are:
Ledger Nano S: It is a super-secure hardware wallet for cryptocurrency. It has its OS called BOLOS and features 2-feature authentication.
Trezor One: Modern cryptography is integrated with Trezor One. It also uses 2-factor authentication for transaction authentication.
2. Software wallet:
The software wallets for cryptocurrencies are:
Coinbase: It is efficient in creating open financial infrastructure. It has over 35 million users currently.
Gemini: It is accessible via both PC and mobile. Gemini can track real-time cryptocurrency prices. The users can set price alerts to get immediately notified during price fluctuations.
Steps for development of cryptocurrency wallet:
Follow the below processes for cryptocurrency wallet development:
3. Define your cryptocurrency app type:
As there are already existing concepts, you do not need to reinvent. Just learn from your competitors, speed up your development process, and define the crowdfunding app concept.
4. Evaluate the existing market scenario:
It is not time for you to analyze the market. Perform a SWOT analysis for your cryptocurrency wallet development to overpower your competition.
5. Design UI/UX:
Identify user flow and create user-friendly information architecture. And focus on making a high-quality UI.
6. Develop technical architecture and backend:
Aspects like database, UI, service tools, and workflow needs to be considered. After the technical architecture is ready, opt for backend development. Create internally and bind external APIs to build a robust backend.
7. Frontend development:
Work on making a responsive design, and make sure that the user experience is top-notch. The most crucial thing about creating a frontend is that it needs to be reliable.
Finally, test the app, and compare it with the original requirement document. If any errors or bugs are found, it is fixed by the development team. And the QA team verifies it, and then only it is released.
The necessary features for cryptocurrency wallets:
The must-have features are:
- User account management
- QR-code scanning
- Trading and exchange cryptos
- Efficient security
- Currency management
- Push notifications
- Seamless onboarding
The dramatic rise of Bitcoin influenced the global monetary system. And this market will continue to grow and will be the future of digital payments.
If you are unfamiliar with cryptos, you must not commence with the app development hectically. And you must take help from a professional cryptocurrency wallet development company to develop highly secured wallets.