How to Create a Cryptocurrency Wallet App: an In-depth Guide for 2021
Interest in cryptocurrencies is growing at a tremendous rate. As a result, many people are wondering how to create a cryptocurrency wallet? It will not only allow you to preserve your assets but also make good money. A mobile application will help to simplify all transactions as much as possible and make the use even more secure. The use of cryptocurrencies can have a beneficial effect on the development of your business as a whole.
What is a crypto wallet?
Before you know the answer, how to make a crypto wallet? It is necessary to understand what constitutes a cryptocurrency wallet.
So, we cannot use any cryptocurrency without special software. Such an application is called an e-wallet. It is necessarily associated with the blockchain, and it allows you to perform various operations with digital currency.
At the moment, more than 70 million people worldwide use the services of cryptocurrency wallets, and their number continues to grow. With its help, a person can buy and sell cryptocurrency, make financial transfers, pay for goods and services, and even borrow. The wallet stores information about all transactions that we have made since the creation of the account.
Most crypto wallets use Bitcoin and Ethereum, the most popular and widespread cryptocurrencies. However, you can create an e-wallet that will use whatever currency is convenient for you. In this case, you will have to write program code individually for the specifics of your system.
A crypto wallet transaction is based on asymmetric key cryptography, which uses two keys - a public key and a private key.
When users send coins to one wallet address, they transfer the coins to the recipient's wallet address. The transaction is saved as a transaction record on the blockchain, and balance changes will occur in the respective wallets.
At first glance, such a system seems simple enough, but at the moment, it is the most secure in the world. Such transactions cannot be tracked, stopped, or blocked. The system is built so that it is impossible to find out about the completion of the transaction itself, which means that it will not be possible to intercept it.
Of course, today, there are already hackers who can bypass this protection system, but their number is minimal. Practice shows that they quickly recover stolen money.
What are the different types of Bitcoin wallets?
Before you know how to set up a crypto wallet? It would be best if you found out what their varieties are.
All bitcoin wallets are divided into two categories - cold and hot.
Cold ones have the following features:
- Not connected to the Internet;
- Harder to use;
- More secure;
- Long-term holding.
Cold wallets exist physically, so they are more secure against hacker attacks. It is safer to store assets here, but it is more difficult to carry out various transactions.
As for hot wallets, they have the following features:
- Connected to the Internet;
- Easy to use;
- Less protected;
- Small day-to-day transactions.
Hot wallets are more common because they are much easier to manage. But the disadvantage is that they are often susceptible to hacker attacks.
Now there are four main types of crypto wallets:
You can install a cryptocurrency wallet on a personal computer. Then it will control all financial transfers that take place on this device. A wallet designed for a smartphone works similarly. Here you can perform any financial transactions from a gadget that is always at hand. It is incredibly convenient and helps you make decisions as quickly as possible, even if you are not in the office right now.
Online wallets are more practical. You can access them from any convenient device, browser, and at any time. But their drawback is quite simple - they are more susceptible to attacks from hackers, who can write off the whole day from your accounts and find out personal data, which is often even more dangerous for the user.
Hardware is the most secure today, as all assets are stored on a separate device that connects to the computer. Usually, flash drives with a large amount of information are used to load all the necessary data.
The choice depends on which device you plan to use to work with cryptocurrency. The most popular is the mobile application, but it is less secure than other types. It is suitable for small transactions. The rest are more secure but a little more challenging to use.
Benefits of cryptocurrency wallet apps
The creation of a crypto wallet is a complex multistage process that requires significant financial investments. Therefore, it is essential to consider all the benefits of such a solution. Cryptocurrency wallet development has several advantages, the most powerful of which are:
- Cost savings;
- Transparency and others.
People who use cryptocurrencies, as a rule, do not want to use the services of third parties, for example, banks that charge too much for their services. Create crypto wallet is a good solution for those who want to maximize the security of their assets, hide their data and perform various transactions.
Often, you can create cryptocurrency wallet in parallel with developing a new currency. In some cases, it makes sense to develop software for the needs of a separate company. It all depends on what you are doing.
How can you use Bitcoin wallets?
How to set up a cryptocurrency wallet? First of all, you need to understand why you need a wallet and its operations.
A regular cryptocurrency wallet performs roughly the same functions as a stable financial platform with fiat currencies. Here you can:
- Make payments in the store (more and more online stores are starting to accept payments in cryptocurrency; there are cinemas where you can pay for tickets in bitcoins);
- Payment of wages (there is a tendency where workers want to receive salaries in bitcoins);
- International transfers (if you make international transfers through a bank, vast amounts of money, it takes several days, the commission is high, and in some cases, it is necessary to fill out any documents).
Today, you can perform any financial transactions using cryptocurrency. There are practically no restrictions here.
Given that more and more companies are using cryptocurrencies, the presence of such a wallet allows you to create more convenient conditions for cooperation, creating more trusting relationships between you and your partners.
How to create a Bitcoin wallet?
How to set up a cryptocurrency wallet? There are two ways to create your cryptocurrency wallet. The first and easiest way is to purchase ready-made template software. It has good technical characteristics and has been proven to be effective. We offer a step-by-step guide on how to create it.
- Step 1. Download ready-made computer software from the corresponding website. It often costs little or no money.
- Step 2. Click on the appropriate button in the menu and create a wallet.
- Step 3. Enter your wallet name and set up permissions for outgoing and incoming transactions.
- Step 4. Select the third-party programs you need and integrate them with your wallet.
As you can see, all of the above steps are not difficult, and a person who is not associated with programming can handle them.
Creating your wallet from scratch
The second way to get a cryptocurrency wallet is to create one from scratch. If the existing cryptocurrency wallets do not suit you for some reason, then you can create your software. It is a more complex process that requires intricate knowledge of blockchain operation, coding, and many others.
The Bitcoin code is open source and free, but only a good specialist can understand it and modify it to suit your requirements. This kind of work takes a lot of time and requires a lot of effort.
Creating your software has stages.
- Step 1. A plan is created, precise client requirements are established, the terms of work are negotiated.
- Step 2. Creating a logo.
- Step 3. Design development.
- Step 4. The development phase consists of writing code and converting design documentation into existing software during the software development process.
- Step 5. Conducting a series of tests that confirm the quality of the work.
No mistakes can be made when writing code. If some problems appear after launching the wallet, then it is often impossible to fix them.
The simpler and more convenient the wallet is, the more likely users will come to use it. It is essential that it is sufficiently protected and has a simple and intuitive interface.
Also, when creating your electronic wallet, you need to think about its promotion (if you do not make it only for your own needs). It should include advertising and the ability to use various types of cryptocurrencies, and much more. Think about what you are missing in other wallets; make yours like yours as a user.
Main features of crypto wallet applications
Regardless of how you created a crypto wallet, it should have the following essential functions:
- Conversion rate (allows you to exchange currencies, both fiat and crypto);
- List of addresses (if you create a list of addresses with which you most often exchange assets, it simplifies the work with the app);
- Notifications (it's always lovely to receive a message that money has been transferred to your account);
- IQ-scanner (allows you to link paper bitcoin wallets and electronic);
- Execution of transactions that have maximum security.
As you can see, in many ways, crypto and regular e-wallets work in the same way. The difference lies in the currencies they support, as well as the conversion rate.
The essence of the blockchain, which you use to create wallets, is to make transactions as secure and open as possible at the same time.
How much does it cost to set up your Bitcoin wallet?
The cost of a bitcoin wallet depends on whether you decide to say ready-made collateral or choose to develop it from scratch.
On average, the development of an entire project takes more than 722 hours of a whole team of specialists. Each IT company offers its rates, so when choosing a partner, be sure to pay attention to this point.
It is worth remembering that newbies who have little experience underestimate the cost to attract customers, but this does not mean that they will do the job poorly.
If you want to create a crypto wallet, then it is better to seek help from specialists. They will be able to develop unique software for your needs. In general, you need to understand that creating your wallet takes a lot of time, requires a lot of knowledge and skills, but the result is worth it.