Gone are the days when managing assets meant relying solely on banks. Today, individuals seek secure and user-friendly tools to bring their cryptocurrencies under control. This guide delves into the exciting world of crypto wallet development, exploring the key features that attract users and the factors influencing the cost of launching such a product.
We'll bypass the traditional financial systems and dive straight into the heart of blockchain technology. Here, you'll discover the steps involved in creating a crypto wallet app, such as choosing the type of crypto wallet, finding the right development partner, building an MVP, testing the product, and others.
Let’s begin our research!
A cryptocurrency wallet is an app or platform designed for users to store, trade, purchase, send, and get digital assets. Additionally, it maintains transaction records. It's essential to note that the wallet itself doesn't store the assets; rather, it grants users access to their cryptocurrency holdings within the blockchain network. Typically, crypto wallet applications are installed on smartphones or desktops, but they can also exist as browser extensions or physical devices.
In reality, transactions involving crypto assets are essentially transfers of information, not the assets themselves. During these transactions, participants exchange ownership rights of specific cryptocurrencies.
However, the question arises: Is a cryptocurrency wallet application secure? Each wallet contains a security key or a private recovery phrase, also known as a seed phrase, which enhances asset protection.
When conducting transactions, the crypto wallet utilizes public and private keys. To draw a comparison with traditional banking, the public key is akin to a bank account number, serving as the wallet's address, which users can share with others or financial institutions.
Conversely, the private key functions similarly to a PIN code for a bank card, granting the user access to their wallet assets. Safeguarding the private key is imperative to prevent wallet breaches or fund theft.
Picking a crypto wallet application type hinges on diverse factors like usability, regulatory measures, cryptocurrency availability, wallet type, and additional functionalities.
Let's explore some wallet classifications to understand their unique characteristics for the right blockchain wallet app development.
Wallets are categorized into hot (software) and cold (hardware) types based on their operational method.
Hot wallets
They encompass web, mobile, and desktop apps. These are some examples of popular hot wallets:
CoinGecko’s hot wallet study shows that the most widespread crypto hot wallets are included in the top 10 wallets mentioned above. The user base of these wallets collectively amassed a staggering 61.92 million installations in 2023.
Cold wallets
These crypto wallets store digital assets offline. Cold wallets can work disconnected from the internet. They are regarded as more secure than hot wallets because they are not so exposed to online hacking attempts. Here are some well-known examples of cold wallets:
Cold wallets typically have the form of paper wallets, hardware devices, or even offline computer storage. Due to their enhanced security features, they are perfect for long-term retention of large amounts of cryptocurrency.
Wallets can also be distinguished based on how they store and control store users' private and public keys. Custodial wallets, typified by cryptocurrency exchanges, store keys on company servers, including responsibility for data backup.
In contrast, non-custodial wallets enable users to retain keys on their devices, with the provision for a recovery phrase to access cryptocurrency in case of key loss. Non-custodial solutions generally offer enhanced security compared to custodial counterparts.
There is also another type of crypto wallet. In contrast to traditional approaches, where private keys remain intact, MPC (multi-party computation)wallets divide the private key into secure fragments, minimizing the risk of unauthorized access. Multisig wallets engage multiple parties, each possessing their private key. The transaction is completed only when a majority signs it.
Let's delve into non-custodial wallets further, considering their prevalence and types based on the devices they are used on.
It is important to recognize that limiting yourself to a single platform is unnecessary when developing your own cryptocurrency wallet. Users often switch between different devices throughout the day, so it's beneficial to cater to their preferences by providing your wallet across multiple platforms.
For instance, the widely-used MetaMask cryptocurrency wallet is available both as a browser extension and as a mobile application for both iPhone and Android devices. Furthermore, it is compatible with popular hardware wallets like Trezor or Ledger, offering users a variety of options for securely storing their cryptocurrency assets.
It may come as a surprise, but not all cryptocurrency wallets support every coin listed on platforms like CoinMarketCap. This discrepancy arises because various cryptocurrencies and tokens are built on distinct blockchain networks. For instance, Bitcoin operates exclusively on the Bitcoin network, whereas currencies such as SHIBA or DAI are traded on the Ethereum blockchain.
Therefore, if your aim is to develop a cryptocurrency wallet application that accommodates a wide array of coins, it must be designed to be multi-currency and capable of connecting to diverse blockchain networks.
Creating your own cryptocurrency wallet involves several crucial steps. Let's break them down one by one.
If you are wondering how to create a crypto wallet, begin by generating a viable business concept for your cryptocurrency wallet app. As the industry is still evolving, many innovative ideas stem from personal encounters with various challenges in the crypto landscape.
Your concept may arise from encountering unresolved issues while dealing with cryptocurrencies. Conduct competitive research to ascertain if similar products exist and analyze how you can enhance them to cater better to your target audience.
Consider cryptocurrency wallet development if:
For instance, imagine a cryptocurrency wallet that not only facilitates transactions but also enables users to track their entire coin portfolio, including those held in their wallets and those staked for interest. This type of feature addresses a gap in existing crypto apps and presents an opportunity for innovation.
Gather feedback from various sources, including colleagues and online communities, to understand user perspectives and refine your product idea accordingly. Deep market research and determining your target audience's needs will set the foundation for designing a top cryptocurrency product.
After validating your crypto app idea, finding a reliable development partner to bring your vision to life is crucial. Look for a software development agency with experienced professionals, like Peiko, who are capable of handling the entire product development lifecycle.
Key specialists required for crypto wallet app development include:
Choose a development partner with previous experience in crypto development and a portfolio of successfully created projects and reviews from clients. For example, at Peiko, we offer a wide range of blockchain development services, including crypto wallet, crypto exchange development, and more. Ensure effective collaboration and communication throughout the creation process to achieve optimal results.
The customer must initially understand how he sees a crypto wallet for their project. This must be formalized as a technical specification (TOR). In the absence of a ready-made technical specification, the client and project manager fill out the brief and then draw up the technical specification anyway.
The project manager carefully examines the project brief and takes into account the client's preferences. They then collaborate with the team to determine the necessary personnel for the new project and estimate the time and expenses required for development. The outcome of this process is the creation of a project concept, which delineates the project's objectives and outlines the necessary steps to achieve them.
The team leader is responsible for establishing the technical specifications for the cryptocurrency wallet app. This specialist compiles detailed app specifications and articulates the development roadmap, precisely outlining specific tasks for programmers.
Before proceeding with full-scale development, creating an interactive prototype of the crypto wallet app is recommended. A prototype allows you to validate your app's concept, gather user feedback, and refine the user experience before putting money into the full creation process.
If the client does not have a prototype or sketches of the user interface, the UI/UX designer makes it from scratch. First, a wireframe is built with the core details of the future solution, and then come prototypes. The final design is developed after the interface and required functions are approved by the customer.
An interactive prototype serves as a visual representation of your app, showcasing its key features and user interface interactions. Share the prototype with target users to collect important insights and improve the design according to their feedback.
Once the prototype has been validated, proceed with developing a minimum viable product (MVP) for your crypto wallet app. Work closely with your development team to implement core features and functionality while adhering to the project timeline and budget. During development, it is essential to prioritize security, scalability, and usability to ensure a seamless user experience.
Key considerations during development include:
At this stage, developers begin writing program code, taking into account the technical specifications, brief, and available prototypes. When creating for iOS, they use Objective-C or Swift languages. When developing a wallet for Android, they use C++, C#, Java, Kotlin, or Python.
After the code is written and the solution is operational, the UI/UX designer checks the app’s interface. This development phase results in a full-fledged version of the crypto wallet that is ready for testing.
Building a secure and user-friendly non-custodial wallet hinges on robust smart contract development. These digital contracts act as the core for these wallets.
A smart contract represents an automated digital agreement stored securely within a blockchain network. It executes designated actions autonomously when predetermined conditions are met. Contracts function as a digital pact that enforces agreed-upon terms among various parties without requiring an intermediary.
These contracts are written in programming languages specifically designed for particular blockchain platforms, such as Solidity for Ethereum. They operate on logic akin to "if-then" statements, encapsulating the terms and conditions for a given transaction or agreement. Once the specified conditions are fulfilled, the smart contract initiates the predetermined actions, minimizing the need for manual intervention, reducing the potential for human error, and enhancing overall operational efficiency. Below, you can see how the smart contracts operate.
When the developers pass the comprehensive version of a wallet, QA engineers begin testing it. At Peiko, we test by considering all the application's options. If we find bugs or shortcomings, we will correct them immediately. The full-scale version will be released only after all employees are convinced of the quality of the solution.
After the team has completed testing and corrected possible shortcomings, the project manager publishes the mobile crypto wallet in the Apple App Store and/or Google Play. Or the customers themselves place the application on digital distribution platforms.
Monitor user feedback and app performance closely, and be ready to tackle any challenges promptly. Regularly update the solution with new functionality and security patches to enhance functionality and address user needs. Consider implementing a feature request mechanism to gather feedback from users and prioritize future updates accordingly.
By following these steps and collaborating effectively with your development partner, you can create a successful cryptocurrency wallet app that meets the needs of your target audience and contributes to the growth of the crypto ecosystem.
Your crypto wallet application should offer robust features that meet your business aims. Here are the indispensable functionalities to integrate if you are asking how to make a crypto wallet:
To further enhance the appeal of your cryptocurrency wallet to users, consider integrating cutting-edge features such as:
When implementing advanced functionalities, it's crucial to prioritize features based on your budget and development expertise, particularly if it's your initial venture into mobile app development. Creating a roadmap can help strategize the integration of these features, with the flexibility to incorporate additional functionalities in future iterations. Remember, the list provided serves as a suggestion. You have the freedom to pick the set of features that aligns best with your cryptocurrency wallet's objectives and target audience.
Building a cryptocurrency wallet requires a well-rounded understanding of the tech stack involved. From blockchain integration to user interface design, each component is essential in ensuring the solution's security, functionality, and overall user experience.
Through using the modern and robust technology stack, developers can create wallets that offer seamless transaction experiences and help drive the adoption of cryptocurrencies worldwide.
Allocate a budget ranging from $40,000 to $120,000 for the development of your unique crypto wallet, aiming to introduce innovative functionalities and drive new crypto adoption scenarios.
If all you have is an idea, initiating the discovery phase is the optimal approach. This crucial step involves comprehensive research and analysis to refine your concept. Once you've crystallized your vision, transitioning to the creation of a rapid prototype is the next logical step. This initial prototype development typically incurs costs of around $4,000-$9,000.
At Peiko, we have vast experience and profound expertise in providing top blockchain development services. Our approach to blockchain wallet development is rooted in a modern agile methodology, allowing us to adapt and iterate quickly in response to evolving project requirements and market dynamics. By applying agile principles, we foster collaboration, transparency, and flexibility throughout the product creation cycle. Thus, we ensure that our clients obtain projects that are robust, innovative, and developed within budget and without delays.
By the way, credible platforms such as Clutch, GoodFirms, and others have proved our reliability, including Peiko in top blockchain development firms over the years.
Now, we will show you one of our successful crypto wallet projects. Bitcoin Additional is a reliable mobile cryptocurrency wallet developed by Peiko. It is convenient to use, and its functionality helps individuals manage their digital assets. This wallet offers support for transfers to contacts, multi-coin compatibility, and an offline payment feature. Bitcoin Additional streamlines cryptocurrency transactions for users everywhere and from any device.
The creation of Bitcoin Additional comprised 8 sprints (periods of time in agile), each focusing on key tasks and challenges to ensure the successful realization of the app's functionalities.
One of the primary tasks in this blockchain wallet development was adapting the application design for tablet devices to ensure optimal user experiences across diverse screen sizes. We successfully coupled with this challenge, making the app user-friendly and responsible on various devices.
Another pivotal aspect of the project involved implementing QR code generation, simplifying transaction processes by enabling users to generate wallet addresses effortlessly. Furthermore, the introduction of the Shake-to-Pay feature brought innovation to the forefront, allowing users to initiate coin transfers with a simple shake gesture.
The synchronization of the contact book enhanced user connectivity and engagement. Thus, we empower users to seamlessly connect with their contacts and extend invitations within the application.
Peiko remained steadfast in prioritizing the security of user data. To ensure bank-level security standards, the team adopted industry best practices. We embedded security processes within the application lifecycle to easily find and address vulnerabilities. Additionally, regular monitoring of the source code's security was conducted. In such a way, we protect the application against potential cyber-attacks and ensure the safety of user data.
Since its launch, Bitcoin Additional has garnered widespread adoption, boasting thousands of users. They rely on its intuitive interface and secure functionalities to manage their cryptocurrency holdings effectively.
The surge in various blockchain techonology solutions and their use cases can be attributed to the widespread popularity of cryptocurrencies. The crypto wallets hold significant importance as it grants users control over their cryptocurrency assets. Through this blog post on how to create a crypto wallet, we aimed to provide readers with a deep understanding of the full app creation process.
A successful cryptocurrency wallet app development involves not only technical expertise but also a keen understanding of user needs and the ever-changing regulatory landscape.
With dedication and innovation, your crypto wallet app has the potential to empower individuals and improve the way we interact with digital currencies. If you are ready to unlock the future of finance, turn to Peiko. We are glad to discuss your idea and help you create the top crypto wallet that end-users will like.