Digital currencies are prolific alternatives to traditional financial instruments for storing and managing money. The cryptocurrency market has seen a remarkable increase in the number of cryptocurrencies, from just 66 in 2013 to over 10,000 in 2023. A cryptocurrency wallet is a one-stop solution for users to store, access, and use their digital currencies. for trade and investment purposes. As the market demand for these wallets increases, it is vital to understand the basics of developing a crypto wallet app.
Development of cryptocurrency portfolios
Cryptocurrency wallets can be defined as either a software program or a hardware device that allows users to store, transfer, and receive cryptocurrency. Much like a bank account for fiat currencies, crypto wallets are crucial in making digital assets practically usable by individuals and organizations.
With a crypto wallet, users can check how much crypto they own and maintain their account balance. Also, these wallets are essential for connecting and interacting with others. Web3 Applications
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 main types of crypto wallets include software (hot) and hardware (cold) wallets. Software wallets can be used to store cryptocurrency securely online, while hardware wallets allow users to store their digital assets offline on a physical hardware device such as a USB drive.
Based on centralized or decentralized wallet options, users can choose between custodial and non-custodial wallets. In the case of custody wallets, on behalf of the users, a third party takes custody of the private keys of the wallet. In non-custodial wallets, the owner of the wallet has his private keys and his funds. The top cryptocurrency wallets include metamaskCoinbase, Exodus, Trust, ZenGo.
Steps to create a crypto wallet app
Before creating a crypto wallet app, developers need to choose features to include in these wallets that can speed up their adoption in the market. Some mandatory features required in the crypto wallet include, but are not limited to, a user registration feature, profile with a bank account or a credit/debit card, real-time crypto prices and charts, QR codes for transactions, push notifications, and features advanced. security options.
The process of developing a crypto wallet application is divided into five general steps:
- Think of a valid business idea
The development of any crypto wallet app starts with a business idea. Although the crypto industry is reaching new heights every day, it is still in its infancy. While navigating the crypto space, users run into various issues and challenges. These obstacles challenge developers to search for solutions, ultimately resulting in intensive research and generation of product ideas.
Running competitive research helps find products that have already solved the problem a cryptocurrency user is experiencing. In this case, that product should be studied and innovative ways proposed to make it more advanced and attractive.
- Choose credible development partners
Once the great potential of the crypto wallet app is established, the next step is to make it a reality with the help of trusted development partners. The best course of action is to choose a credible software development agency made up of experts from different domains.
These partners handle all aspects of the end-to-end product idea, from discovery to maintenance. Product managers, project managers, UX/UI designers, developers, and testers are some specialists whose involvement is very important for the development of a crypto wallet app.
- Create an interactive prototype
After selecting the wallet provider, the focus should be on designing an attractive prototype, which is practically a virtual representation of the wallet application. In this basic working version, all the screens are designed and interconnected so that test users can explore them while the developer can identify areas that require improvements.
The main reason to develop a prototype before creating a Minimum Viable Product (MVP) design is that blockchain-related coding is expensive. On the other hand, prototyping 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 important step in the process of creating a cryptocurrency wallet application is the development of the MVP design and its testing. At this stage, the application developer and his team must make important decisions, for example, selecting the type of wallet (custodial or non-custodial) and the platforms (apps, web) on which users are most likely to use the application. wallet. application
- Release and maintenance of The Wallet
The final step of the crypto wallet app development process is the public release. As with most mobile apps, the wallet app must be uploaded to the app store or Google Play. Also, the app must be connected to live blockchains based on the supported currencies.
