In this blog post, we will answer the most FAQs about the development of cryptocurrency wallets. All the most important about primary functionality, technology stack, and free tools for the crypto wallet in one place. Stay tuned!
What Are the Primary Functionalities of a Crypto Wallet?
Primary Functionalities of a Crypto Wallet
A crypto wallet is expected to have a set of primary functionalities for security and user experience purposes. The primary features of a crypto wallet should include:
• Cryptocurrency purchase, selling, and transfer: Fundamentally, a crypto wallet must allow its owner to transfer cryptocurrency in and out of their wallet. Software developers include functions related to the purchase and selling of cryptocurrency with another currency in the wallet as well.
• User profile: A crypto wallet should also have a user profile showing the portfolio, transaction history, security settings, notification settings, backup options, seed phrases, and other useful information.
• Multi-crypto asset support: A crypto wallet should support multiple assets such as popular coins (e.g., Bitcoin and Ethereum), stablecoins, and other altcoins.
• QR code scanner: Every crypto wallet must have a QR-code scanner for quick and easy user transfers in their daily lives.
• Account authorization features: All crypto wallets should have account authorization features where the wallets require the owners to input the passwords, private keys, or seed phrases to access their wallets.
• Security-based functionalities and anti-DDoS protection: A crypto wallet should have additional security functionalities to protect the user data from being stolen, as well as the anti-DDoS feature (Distributed Denial of Service), which protects the server from the traffic overwhelming.
• Fiat withdrawal: In some crypto wallets, especially those on centralized exchanges, users can directly convert their cryptocurrency into fiat currency and transfer the fiat currency into their bank accounts.
What Are the Types of Crypto Wallets?
There are various types of crypto wallets. Axon builds software wallets where the two most commonly used are web wallets and mobile wallets:
These are the applications that users need to install on their phones. This type of wallet is highly portable and typically comes with QR code functionality for easy payment.
For use on portable electronics like smartphones and tablets, mobile wallets are digital currency wallets. They provide a handy way for users to access and manage their cryptocurrencies while they're on the go. These are some important considerations for mobile wallets:
- Mobile wallets give users the freedom to access their cryptocurrencies from any location with an internet connection, at any time. They are the best for routine transactions and quick access to money thanks to their convenience.
- User-Friendly Interfaces: The majority of mobile wallets come with user-friendly user interfaces that are intuitive and simple to use, making them suitable for both novice and experienced users.
- Security measures: Mobile wallets frequently put a high priority on security by including PIN codes, biometric authentication (such as fingerprint or face recognition), and encryption to safeguard users' private keys and funds.
- Offline Storage: Some mobile wallets allow users to store their private keys locally on the device, which can increase security by securing the keys from online dangers. This implies, however, that losing the device could also mean losing access to the wallet.
- Backup and recovery features are common in mobile wallets, giving users the ability to restore their wallets in the event that their device is lost, stolen, or broken.
- Support for multiple cryptocurrencies allows users to manage different coins and tokens within a single app thanks to some mobile wallets that offer this feature.
- Integration with QR Codes: Mobile wallets frequently make transactions possible through the scanning of QR codes, which makes sending and receiving cryptocurrencies easier.
- Third-Party Integrations: Some mobile wallets provide integrations with third-party services, like cryptocurrency exchanges or decentralized applications (DApps), enabling users to engage with the, this also means that losing the device could result in the loss of access to the wallet.
These are the wallets that users can access via any web browser without installing any particular software. This type of wallet is the most portable but least secure as it is constantly connected to the internet.
- Convenience: Web wallets offer the convenience of accessing cryptocurrency funds from any device with an internet connection and a web browser. This makes them suitable for users who switch between multiple devices.
- User-Friendly: Similar to mobile wallets, many web wallets put a strong emphasis on user-friendliness with simple interfaces that make managing cryptocurrencies easier.
- Security considerations: To protect user accounts and funds, web wallets frequently employ strong security measures like encryption, two-factor authentication (2FA), and other techniques. Online storage does, however, come with some security risks.
- Web wallets are easily accessible to users since no software needs to be downloaded or set up. This lowers the entry barrier for newcomers to the cryptocurrency space.
- Third-Party Control: Since web wallets are hosted by third-party providers, users are essentially entrusting their private keys to these providers. This introduces an element of trust and reliance on the security practices of the wallet provider.
- Integration with Services: Some web wallets integrate with cryptocurrency exchanges, allowing users to directly trade within the wallet interface.
- Backup and Recovery: Web wallets typically provide options for users to create backups and recovery phrases to regain access to their wallets in case of lost passwords or compromised accounts.
- Cross-Platform Compatibility: Web wallets are accessible from various operating systems and devices, making them versatile for users with different preferences.
Users should choose the type of wallet that aligns with their preferences, security requirements, and usage patterns. It's essential to research wallet providers, review security features, and assess whether the chosen wallet aligns with your specific cryptocurrency management needs.
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How To Develop a Crypto Wallet with Free Tools?
Bitcoin is by far the most well-known cryptocurrency. Furthermore, its code is open-source, meaning that anyone in the world can view and reference its architecture. As a result, the development of a Bitcoin wallet for personal use is not too difficult. There is even an assortment of free libraries in the community that developers can utilize to simplify wallet application development. Here are some examples of the most popular libraries:
Coinbase Software Development Kit (SDK)
Coinbase, one of the most popular cryptocurrency exchanges, offers an SDK for wallet application development. It is a cross-platform Java library that supports Java, Python, Ruby, and platforms like Android and iOS. Developers can use it to implement features such as transaction management, and cryptocurrency payment support which allows users to use Bitcoin to purchase other cryptocurrencies.
Blockchain's wallet application programming interface (API)
Blokchain.com offers a free API that developers can utilize to develop wallet applications for platforms such as Windows, macOS, Linux, iOS, and Android. The API also supports languages such as Java, Python, and Ruby. The API allows developers to quickly create a wallet application with essential functions such as Bitcoin transfers, wallet balance checking, and password setup.
How To Develop a Crypto Wallet from Scratch?
Those looking to build a crypto wallet from scratch without relying on existing libraries will require a professional development team. Prior to app development, there must be a planning phase that involves a product discovery process, which is an iterative process that teams use to reduce uncertainty around the product to meet the needs of their target audience. How to create cryptocurrency wallet app?
In the product discovery process, the team should all be clear on the problem that they are solving and have the problem defined clearly. This is to prevent team members from overextending and including irrelevant features, wasting precious time and money. In addition, during the product discovery stage, the team plans software architecture and considers aspects such as:
• The synchronization of the blockchain network with the wallet to correctly generate wallet addresses, recognize the transactions, calculate transaction fees, and other important functions.
• The creation process of the wallet application and the relevant components that developers need to integrate, such as the necessary APIs, programming languages, and suitable payment gateways.
• The features of the wallet that users want in their wallet applications, such as balance checking, transaction history, and portfolio tracking.
To develop the product optimally, the development team must include people with experience in software solutions development, such as:
• User experience (UX) and user interface (UI) designers build the interface of the wallet. They create user-friendly interfaces that users can easily understand to utilize the wallet fully.
• Front-end developers then ensure the development of the user interface and optimization of user experience by implementing the design into the crypto web application.
• Mobile developers know how to build cryptocurrency wallet for iOS and Android apps or a cross-platform solution in case you are focused on MVP development. The last option ensures a quicker development process.
• Back-end developers are responsible for the development of operations that occur on the server-side. The backend is an essential part of application development as it handles, stores, secures, and processes the data for smooth operation.
• Quality assurance (QA) engineers test the wallet application to ensure all the functions work as intended without bugs or errors. They are responsible for creating and running tests that identify potential issues with the wallet application before the product launch.
How To Integrate Payment Services into a Crypto Wallet App?
For businesses looking to accept Bitcoin, they do not need to build their own Bitcoin wallets. Instead, to create a crypto wallet, these businesses should integrate one of the many ready-made payment services that support Bitcoin:
This wallet offers a payment gateway where Bitcoin can be instantly converted into fiat currency even if the merchant did not request a withdrawal. The payment gateway is free for the first $1 million of transactions and requires only a merchant fee of 1% afterward.
BitPay offers a feature where merchants can set the withdrawal to occur at specific time frames. It charges a simple 1% transaction fee (which may be higher for riskier industries) with daily settlements and unlimited monthly transactions.
This platform offers integrations with various other gateways, such as Coinbase, to facilitate payment processing. It has different tiers that charge different monthly fees depending on the merchants' needs.
What Are the Suitable Technologies for the Development of a Crypto Wallet?
Technologies for the Development of a Crypto Wallet
The team for multi cryptocurrency wallet development will have to choose suitable programming languages for the crypto wallet application depending on the platforms of choice. Here are some examples of programming languages and SDKs that developers can use for wallet application development:
Java or Kotlin
Java or Kotlin are two options for developers looking to build an Android cryptocurrency wallet. Java is a very well-liked language for creating Android applications because it is straightforward. On the other hand, Google prefers Kotlin, a more recent programming language, for the creation of Android applications. Kotlin is also completely compatible with Java and is simpler to learn.
Swift or Objective-C
Developers have the option of using Swift or Objective-C when creating iOS applications. Although it is closed-source, Objective-C is a well-known programming language. Swift, on the other hand, is a more recent open-source language developed by Apple for programmers to create applications for its platforms. Like Objective-C, Swift is simpler to read and learn.
This SDK from Google is based on Dart, a versatile programming language that developers can use to create applications that work cross-platform without any restrictions. Due to its simultaneous support for six different platforms, the Flutter SDK is ideal for teams looking to publish cross-platform wallet applications. The six platforms are Android, iOS, macOS, Windows, Linux, and the web.
The rise of numerous different blockchain projects and the increased curiosity about cryptocurrencies and their useful applications are both effects of Bitcoin's popularity. The crypto wallet is one of these applications' most vital parts because it gives users access to their cryptocurrency. You should now have a general understanding of how to make crypto wallet thanks to this blog post, we hope.
Creating a cryptocurrency wallet requires many essential steps since such wallets generally have a set of must-have functions, such as sending and receiving cryptocurrency and transaction history. Developers looking to create their own crypto wallets can either rely on existing libraries or build the wallet application from scratch. Currently, Axon supports many of the technologies mentioned above and can create a robust and feature-rich crypto wallet app to suit your needs.