How to create a crypto wallet app?

If you are still living in the remote parts of the Amazonian rainforest or interstellar space, chances are pretty high that you haven’t heard of the term ‘Cryptocurrency’ in the last few years.

With cryptocurrencies like Bitcoin becoming popular overnight, people need to store their hard-earned crypto money somewhere. Thus, the need for a crypto wallet app arose. They are similar to traditional wallets in the sense that they allow you to store your money safely.

Having said that, this is where all the similarities end. In order to store cryptocurrencies such as Bitcoin, one needs to have a wallet app that can store cryptocurrency. Different types of cryptocurrency wallets offer different levels of security. The primary function of a wallet app is to securely store the private key that gives the user access to the address on the crypto network.

With the rise in popularity of mobile apps, the need for mobile-based crypto wallet apps has risen significantly. After reading this guide, you will be familiar with the different types of wallet apps available in the market. We will also help you understand what you need and how to create one for yourself.

What is cryptocurrency?

The first question that might come to your mind is, what exactly is cryptocurrency? It is a form of digital currency that can be used to buy everything you can with regular money. However, what makes it interesting is the use of blockchain technology.

It is a decentralized form of currency, meaning no central authority manages or maintains the currency. The use of blockchain makes it more interesting. A blockchain is, by definition, an open, distributed ledger that everyone has access. Every transaction made is in the form of “blocks” linked together to form a “chain” of previous crypto transactions.

The advantage of using cryptocurrencies in favor of physical currency is that crypto cannot be counterfeited, and the transaction records cannot be modified in any way. Click To Tweet

In addition, since the database is spread across thousands and millions of computers, you cannot change the content of the ledger in any way, thus eliminating the risk of fraud.

Also Read: How To Create A Cryptocurrency – Everything Explained

What is a Cryptocurrency Wallet?

Famous cryptocurrencies other than Bitcoin

When you think of crypto, the first thing that might come to your mind is Bitcoin. Without a doubt, Bitcoin is by far the most popular cryptocurrency out there. But other than Bitcoin, many cryptos have gained massive value and popularity in recent years.

Let us look at the top 10 cryptocurrencies you should definitely be aware of other than Bitcoin.

1. Ethereum
2. Litecoin
3. Bitcoin Cash
4. Monero
5. Tether
6. Binance
7. Polkadot
8. XRP
9. Cardano
10. Dogecoin

What is a cryptocurrency wallet app?

According to a report by Statista, more than 68 million people are using cryptocurrency wallet apps. Click To Tweet

A wallet app is an application or device that allows you to store your cryptocurrency safely. Think of it as a combination of a wallet and a bank. While several crypto wallets are out there, users sometimes search for a customized solution that fits their requirements.

The function of a wallet is to store the public and private keys using which you can access your share of the associated cryptocurrency.

These keys help in initiating cryptocurrency transactions. In short, to use crypto, you need a wallet.

The number of users using a wallet app is going to increase exponentially in the near future. If you want to create a cryptocurrency wallet app, this is the best time to do so.

Types of crypto wallets

Depending on user requirements, there are five types of cryptocurrency wallets. They can be divided into the following categories:

Based on Format

Hot Wallets

1. Desktop Wallets

They are one of the most popular types of crypto wallets available right now. They allow the user to store cryptocurrencies directly on their desktop. Desktop wallets need to be installed like standard software packages. They are available on all major operating systems, such as Linux, Windows, and macOS.

2. Online wallets

These types of wallets require a private key to work. They are useful when you do not have your PC with you and want to access your Crypto wallet account. However, they are most vulnerable to hackers.

3. Mobile Wallets

Mobile wallets can be considered as a combination of desktop and online wallets. The end-user can access cryptocurrency from anywhere using a mobile app. Idea Usher can help you create a mobile wallet easily!

Cold Wallets

1. Hardware wallets

Think of it as a safe. Hardware wallets allow users to store a copy of their private keys on a secured device. They can prove to be useful if you don’t sell or buy cryptocurrencies often.

2. Paper Wallets

Paper wallets contain a printout of your private and public authentication keys. It is the most insecure type of wallet. If your paper is lost, then you will lose access to your cryptocurrency as well!

Based on governance

1. Custodial wallets

In these wallets, a third party, like a crypto exchange, holds your private keys for you. It’s similar to keeping your money in a bank. This means the exchange is responsible for the security of your funds, but it also means you don’t have complete control over your crypto.

2. Non-custodial wallets

With these wallets, you are in charge of your own private keys. This gives you more control and security over your crypto, but it also means you are responsible for keeping your keys safe. If you lose your keys, you could lose access to your crypto forever.

Crypto Wallet Market Overview

The global crypto wallet market size was estimated at USD 8.42 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 24.8% from 2023 to 2030.

These secure digital vaults protect your cryptographic keys, acting as a gateway to sending, receiving, and holding cryptocurrencies. From user-friendly apps to robust security devices, crypto wallets cater to a variety of needs and security preferences.

Why make your own crypto wallet in 2024?

Here are 8 reasons why someone might consider creating their own crypto wallet in 2024:

1. Enhanced Security

Taking custody of your private keys through a self-hosted wallet eliminates the reliance on third-party platforms, potentially reducing the risk of hacks or security breaches that could compromise your funds.

2. Greater Control

Self-custody wallets offer complete control over your cryptocurrency. You decide when and where to spend or transfer your funds, without being subject to restrictions or limitations imposed by centralized exchanges.

3. Privacy Focus

Transactions conducted through self-hosted wallets are not directly linked to your personal information, potentially enhancing your financial privacy compared to using custodial exchanges that require KYC (Know Your Customer) verification.

4. Offline Storage

Certain self-hosted wallets allow secure offline storage of your private keys, further mitigating the risk of online attacks and unauthorized access.

5. Integration with DeFi Applications

Self-hosted wallets can interact directly with Decentralized Finance (DeFi) protocols, enabling participation in various DeFi activities like lending, borrowing, and staking without relying on intermediaries.

6. Supporting Decentralization

Using a self-hosted wallet fosters the core principle of decentralization in the cryptocurrency space, reducing reliance on centralized entities and promoting a peer-to-peer financial system.

7. Future-proofing

As cryptocurrency regulations evolve, self-hosted wallets might provide a way to maintain control over your assets even in scenarios where stricter regulations impact centralized exchanges.

8. Technological Proficiency

Building your own wallet can be a valuable learning experience, allowing you to gain a deeper understanding of the technical aspects of cryptocurrency and blockchain technology.

More than 68 million people are using crypto wallets in some way or another.

Core features of a crypto-based wallet app

1. Multi-currency Support

Cater to a wider user base by enabling the storage, sending, and receiving of a diverse range of popular cryptocurrencies and tokens within a single platform.

2. Biometric Authentication

Integrate secure login methods like fingerprint or facial recognition for convenient and robust access control, reducing reliance on traditional passwords.

3. Built-in Exchange

Facilitate seamless in-app swapping between various cryptocurrencies, eliminating the need for external exchanges and offering a more streamlined user experience.

4. Customizable Transaction Fees

Empower users with the flexibility to set custom transaction fees, allowing them to prioritize transaction speed based on their needs while potentially saving on costs.

5. Fiat Integration

Bridge the gap between traditional finance and crypto by enabling users to directly purchase cryptocurrency using fiat currency (like USD or EUR) through integrated payment gateways.

6. Advanced Analytics Dashboard

Provide users with comprehensive insights into their crypto holdings, transaction history, and portfolio performance through clear and intuitive data visualizations.

7. DApp (Decentralized Application) Browser

Incorporate a secure DApp browser directly within the wallet app, allowing users to interact with various DeFi protocols and explore the growing world of decentralized applications without needing to switch between platforms.

8. Security Features

Implement multi-layered security measures like hardware wallet integration, two-factor authentication, and secure enclave technology to safeguard user assets and mitigate the risks of unauthorized access.

How do crypto-based wallet apps work?

• All transaction records are stored on the blockchain network.
• These wallet apps contain your private and public keys, which can be used to perform transactions on the network.
• If you send or receive any crypto from someone, the transfers happen by changing the ownership of the tokens on the network.
• The private key (in your wallet) should match the public key on the blockchain network to access funds. This enables the wallet to make transactions on your behalf.
• The public key is used to receive funds and can be searched in the distributed ledger.
• The final step involves the use of the private key to sign the transaction. It is used to prove that the user owns the public key associated with the same address.

How to make your wallet app secure?

1. Educate users about security

Tell your users that only they have access to their public and private keys. Inform them that they might lose all their valuables if they share their passwords and private keys with anyone else.  

Crypto transactions are irreversible in nature, meaning any funds that are once lost are lost forever. Click To Tweet

2. Use 2FA

In today’s age, passwords and PINs are not the most reliable source of security. Make sure you encourage users to use two-factor authentication. Two-factor authentication requires additional login credentials apart from a password and username. It can either be an OTP sent via SMS or email. Even though using 2FA might be frustrating for some, it offers an extra layer of security in case your password or PIN is compromised.

3. Encourage investment diversification

Tell your users not to store all their investments in a single account. In case of any security breach, people using multiple accounts have fewer chances of losing all their cryptocurrencies compared to those with a single account. So, if you are using a wallet app, having multiple accounts on the same platform is better to minimize the risk of losing all your hard-earned money.

Tech Stack is required to develop a cryptocurrency wallet app.

Here are some technologies you can make use of:

• To develop the web app, you can use Node.js. This will help scale all your apps easily.
• If you are planning to make an Android app, you can make a wallet app using Java or Kotlin.
• Coming to native iOS app development, you can either use Swift or Objective C. Swift is a better choice if you want to lower maintenance costs.

Cryptocurrency wallet app:  Phases of development

No matter what type of app you are developing, each one has multiple stages of development. Here are the phases of development you will have to go through when creating an app:

#1. Planning

Planning is the first and foremost stage of any app development process. Decide which features you want to include in your mobile wallet app to incorporate. Tell the developers which technology you want to use and the cryptocurrency you want your app to support.

#2. Budget management

Make sure to set a budget beforehand. Many people do not have a figure in their minds when they want to develop an app. Make sure to include MVP features and expand from there.

#3. UI/UX development

The UI and UX development phase is one of the most critical phases of development. Ensure you clearly explain to the developers and UI/UX developers how you want your app to look.

#4. Coding

Coding is another important part of the development process. We at Idea Usher have a team of highly experienced developers who can easily develop a mobile app.

#5. App testing

It is one of the most overlooked aspects of app development. Testing an app is as important as coding. It helped eliminate all the bugs and glitches the app might have. Make sure you give the developers enough room to perform thorough testing before deploying it.

#6. Deployment and post-release support

A good mobile app development company always helps its customers even after the app is released. If you encounter any difficulties or downtimes after releasing a crypto mobile wallet app, the developers can help you with any issues whatsoever.

Cost of developing a cryptocurrency wallet app

It all depends on the features and technologies you want to make use of. A  wallet app with cryptocurrency storage and MVP features might cost you somewhere around $40,000-$60,000.

Also Read: How Much Does NFT Marketplace Development Cost?

Why choose Idea Usher

With more than 200+ projects, Idea Usher has hands-on experience developing wallet apps. Our experienced development team can help you create a crypto wallet app keeping all your requirements in mind.

If you are a startup and have a tight budget, we can help you develop a crypto wallet app at reasonable rates. Choose Idea Usher and get a free quote by clicking this link or drop us an email at [email protected].

Conclusion

While making a crypto wallet app is a tedious process, the outcome is usually worth the effort. Every cryptocurrency out there needs a crypto wallet for people to use.

If you are interested in developing a wallet app for cryptocurrency, you will need various blockchain experts on your team. The crypto wallet app market is still untapped. If you decide to make an app now, it will allow you to become one of the leading providers in the market.

FAQ

Q. Can I create my own crypto wallet app?

A. Technically yes, but it’s a complex project. Building a secure and feature-rich wallet requires programming expertise and knowledge of blockchain technology. Consider starting with a user-friendly platform to manage your crypto if you’re new to the space.

Q. How much does it cost to build a crypto wallet?

A. The cost can vary greatly depending on the app’s complexity, features, and development team. It can range from thousands for a basic app to hundreds of thousands for a feature-packed platform.

Q. How do you make a crypto trading app?

A. Developing a crypto trading app is even more intricate than a wallet. It involves integrating with exchanges, real-time market data feeds, and robust security measures. This is best left to experienced developers who understand financial regulations and cryptocurrency.

Q. How do I set up a crypto mobile wallet?

A. Setting up a mobile crypto wallet is easy! Research reputable providers, download their app, and follow the on-screen instructions. Remember, you’ll be responsible for safeguarding your private key or recovery phrase, so keep it secure!