Digital currencies are prolific alternatives to the traditional financial instruments for the storage and management of money. The crypto market has seen a remarkable rise in the number of cryptos from mere 66 in 2013 to over 10,000 in 2023. A cryptocurrency wallet is a unique solution for users to store, access, and use their digital currencies for trading and investing purposes. As the market demand of these wallets is increasing, it is vital to understand the basics of a crypto wallet application development.
Cryptocurrency Wallet Development
Cryptocurrency wallets can be defined as a software program or hardware device that allows users to store, transfer, and receive cryptocurrencies. Much like a bank account for fiat currencies, crypto wallets are crucial for making digital assets practically usable for people and organizations.
With a crypto wallet, users can check how much cryptocurrency they own and maintain their account’s balance. Moreover, these wallets are essential to connect to and interact with other Web3 apps.
It is widely known that cryptocurrencies are stored on a blockchain network as a public key address. Using the public key address, any crypto user can send and receive digital assets. However, with crypto wallet apps, users can manage the corresponding private encryption keys to access these public addresses and initiate a transaction.
The two major types of crypto wallets include software (hot) and hardware (cold) wallets. Software wallets can be used for securely storing cryptocurrency online while hardware wallets allow users to store their digital assets offline on a physical hardware device like a USB drive.
On the basis of centralized or decentralized wallet options, users can choose from either custodial wallets and non-custodial wallets. In the case of custodial wallets, on behalf of users, a third party takes custody of the private keys of the wallet. In the non-custodial wallets, the wallet owner holds their private keys and their funds. The top-listed cryptocurrency wallets include MetaMask, Coinbase, Exodus, Trust, ZenGo.
Steps of Creating a Crypto Wallet App
Before creating a crypto wallet app, developers should choose features to include in these wallets that can accelerate their market adoption. Some mandatory features required in the crypto wallet include but are not limited to – a user signup facility, profile with a bank account or a credit/debit card, real-time crypto prices and charts, QR codes for transactions, push notifications, and advanced security options.
The process of developing a crypto wallet app is divided into five general steps:
- Come Up with a Valid Business Idea
The development of any crypto wallet app commences with a business idea. Although the crypto industry is reaching new heights everyday, it is still in its infancy. While navigating through the crypto space, users stumble upon various issues and challenges. These hurdles challenge developers to seek solutions, which ultimately results in intensive research and generation of product ideas.
Running competitive research helps in finding products that have already solved the problem a crypto user is experiencing. In this case, one should study that product and propose innovative ways to make it more advanced and appealing.
- Choose Credible Development Partners
Once the strong potential of the crypto wallet app is established, the next step is to turn it into a reality with the help of reliable development partners. The best course of action is to choose a credible software development agency consisting of experts from different domains.
These partners take care of every aspect of the product idea from start to finish, from discovery to maintenance. Product managers, project managers, UX/UI designers, developers, and testers are some specialists whose involvement is highly crucial for the development of a crypto wallet app.
- Create an Interactive Prototype
After selecting the wallet provider, the attention should be shifted on designing an engaging prototype, which is practically a virtual representation of the wallet app. In this basic working version, all the screens are designed and interlinked so that the test users can explore it while the developer can identify areas that demand improvement.
The main reason for developing a prototype before creating a Minimum Viable Product (MVP) design is because blockchain-related coding is expensive. On the other hand, prototype development costs less and provides a way to find the perfect balance of features and UX for the crypto wallet.
- Develop and Test an MVP
The next major step in the process of creating a cryptocurrency wallet app is the development of MVP design and its testing. In this stage, the app developer and its team needs to make prominent decisions, for e.g., selecting the type of wallet (custodial or non-custodial) and the platforms (apps, web) on which the users are more likely to use the wallet app.
- Release and Maintenance of The Wallet
The final step of the crypto wallet app development process is the public release. As with most mobile applications, the wallet app should be uploaded to the App store or Google Play. Moreover, the app should be connected to live blockchains depending upon the supported coins.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/18/cryptocurrency-wallet-app-development-a-comprehensive-guide/