Recent years have witnessed a rapid expansion of Blockchain Wallet Development and its applications. Consequently, numerous new businesses and entrepreneurs have begun investing in Blockchain technology. Almost all cryptocurrencies are entirely based on Blockchain, so there is an enormous demand for developing crypto wallet apps.
Our previous cost-related articles provided a ballpark cost estimate for well-known apps such as WhatsApp, Uber, etc.
Cryptocurrency/Bitcoin Wallet Application will be the subject of this article, as it is a technology that has not yet taken off but has the potential to spark a revolution.
To understand what the development entails and how much it would cost to develop a cryptocurrency wallet, it is essential to review the fundamentals of cryptocurrencies and how to create a crypto wallet.
What are Cryptocurrencies?
Blockchain-based cryptocurrencies are decentralized digital currencies. The value of a cryptocurrency is controlled and maintained as decentralized. Via the internet, these tasks are shared among users of a cryptocurrency. Cryptocurrencies are based on blockchain technology.
What are Cryptocurrency Wallets?
Cryptocurrencies require a location for storage and transactions. This is why a cryptocurrency wallet is needed. It is a Digital Wallet App Development that keeps your private keys — the passwords that give you access to your cryptocurrencies — secure and easily accessible, allowing you to send and receive Bitcoin and other cryptocurrencies. These keys validate your ownership of digital currency and enable you to conduct transactions.
Increasing alongside the number of cryptocurrency traders and enthusiasts is the number of cryptocurrency wallets in which users can store their funds. According to Statista, the rise in cryptocurrency wallet development services has increased the number of Blockchain wallet app users worldwide.
What kinds of crypto wallets are available?
Hot wallets and cold wallets are the two primary types of non-custodial wallets (where you control your funds).
Hot Wallets
Hot wallets almost always have an internet connection. Hot wallets are the most widely used cryptocurrency wallet because they can only be used online. They may reside on your phone, computer, or web browser. Although hot wallets are the most practical cryptocurrency wallets, their constant internet connection makes them more attackable than cold wallets (which are seldom connected to the internet).
Here are the most commonly used types of hot wallets:
- Desktop wallets
- Mobile wallets
- Web wallets
Desktop Wallet
To use a desktop wallet, simply download and install the wallet software on your computer. While this provides convenient access to your coins, desktop wallets are more susceptible to malware and exploits that could compromise your device. Proper crypto security hygiene is always required, especially with desktop wallets.
Desktop wallet tip: Check and double-check that the URL you are using to download the wallet is correct. It is not uncommon for phishing attacks to impersonate well-known crypto wallets, and it is possible to download malicious software that inadvertently mimics a genuine crypto wallet.
Best desktop wallet: Bitcoin and cryptocurrency wallet Exodus. Additionally, Exodus has an exchange where you can buy a cryptocurrency and store it in your wallet. Exodus also provides a mobile wallet (more on mobile wallets below).
Mobile Wallets
Mobile wallets are app-based, smartphone-connected wallets. Mobile wallets are secure and easy to use if you wish to send or receive cryptocurrency on the go. You can access your mobile cryptocurrency wallet like any other app on your mobile device. Individuals typically use mobile wallets rather than businesses. Still, a small business such as a bakery or barber shop could use a mobile wallet to accept crypto payments from customers peer-to-peer.
As this is your account recovery password, it is crucial to record the seed phrase and store it in a secure location (such as a physical notebook in a fireproof safe) when setting up a mobile wallet. If your phone is lost or stolen, you can quickly regain access to your coins by entering the seed phrase into your new device.
Mobile wallet tip: Never store your private key or seed phrase on a computer or mobile device. Avoid laziness and take a screenshot. Write down your seed phrase to safeguard your funds if your mobile device is compromised.
Best mobile wallet: Wallet Coinbase. Not to be confused with Coinbase, an exchange and custodial service. Coinbase Wallet is noncustodial, which means you own your private key. (This also means Coinbase customer service will be unable to assist you if you lose your private key.) Mycelium is yet another well-known mobile bitcoin wallet.
Multi-cryptocurrency wallet development
Blockchain Wallet App and similar cryptocurrency wallet apps offer the ability to store and trade multiple digital currencies without switching screens or devices. In addition, it enables a single application to serve as a platform for monitoring the status of your digital currency portfolio.