According to Statista, the number of cryptocurrencies worldwide increased from 2,388 in December 2019 to 10,656 in February 2022, a growth of around 350%. To manage their cryptocurrencies securely, users need a crypto wallet, which allows them to store and protect their digital currencies from unauthorized access.
While the concept of the crypto wallet is simple, an account for sending and receiving payments, the technology behind them is more complex and poses challenges for developers. Crypto wallets need to efficiently and effectively manage digital keys and cryptocurrency transactions on the blockchain network while providing a simple and seamless user experience.
What are the different types of crypto wallet?
Crypto wallets can be divided into different categories. Hardware wallets, similar to a USB stick that stores the token and private key, and paper wallets, a document that contains copies of the wallet’s public and private keys, are not covered by this article because they do not have a digital user interface. Instead, we will examine the three types of software wallets: online wallets, PC/desktop wallets, and mobile wallets.
Features of the digital wallet
So what digital features are needed for best practice crypto wallet development? Here is an overview:
First of all, crypto wallets must provide a seamless user experience. In the financial sector, the growing popularity of fintechs and challenger banks has seen an increased focus on UX, and customer expectations for financial applications are rising. If the crypto space is to keep up, the following usability features are essential for crypto wallet development:
Robust user interface
When producing a high-tech application like a crypto wallet, developers can easily forget that they are ultimately creating an application for non-technical end users. Beyond designing the underlying technology, getting details like app design, navigation, and user guidance should also be a priority. Developers should always keep in mind that the crypto wallet market is highly saturated; if an app doesn’t work perfectly, customers will download a different one.
The cryptocurrency market is highly volatile and coin prices can fluctuate drastically. This means that crypto wallet users like to monitor exchange rates much more closely than traditional banking clients. However, without becoming a full-time trader, users do not have the time or energy to track prices 24/7. To prevent users from losing track of their coins and keep them engaged, crypto wallets should send updates via push notifications. Inform users when a certain target price is reached, coin prices have changed noticeably, or a payment has been received.
To protect user funds from computer or software malfunctions, developers must allow users to back up their wallets. While users would benefit more from backing up to their laptop storage or SD card, not everyone will think of doing this. Let customers know you care about their funds by proactively integrating secure cloud storage apps like Dropbox or Google Drive into the wallet.
Compatibility with multiple operating systems
To attract as many potential users as possible, developers should design for all operating systems. They should opt for cross-platform mobile app development as this simplifies the development process and allows for more flexibility. With it, developers can also reap the benefits of faster development times, lower costs, faster deployment, and ongoing management capabilities.
Security is an essential consideration for the development of crypto wallets. From a user perspective, without the ability to securely store cryptocurrency, nothing else matters. To earn user trust, crypto wallets need to offer the same kinds of security features that users would expect from a traditional banking app.
Two Factor Authentication
A crypto wallet with two-factor authentication login protects user funds from potential attacks. In addition to asking users to confirm their identity when they try to login, developers should also ask users to confirm login attempts from unknown IP addresses.
Automated logout is essential for a successful crypto wallet. To minimize the risk of a user’s account being accessed by others, wallets should automatically log the user out after a period of inactivity or after they close the app. This is something traditional banking customers are used to as the industry standard.
Local private key storage
Local private key storage is another indispensable feature of crypto wallets. Instead of storing private keys on the server, where they can be easily stolen, crypto wallets should automatically store them locally on the user’s end device.
The importance of cryptocurrencies will continue to increase in the coming years and with it the need for crypto wallets. The NFT boom of the last few months will accelerate this change.
As more developers enter the market with new apps, digital quality will increasingly become the deciding factor influencing wallet downloads. If a crypto wallet is going to stay ahead of the competition, implementing the features mentioned in this article should be the bare minimum for crypto wallet development.
To create truly successful crypto wallets, developers need to thoroughly test functionality, UX, localization, and accessibility. After all, great features mean nothing if they don’t work properly. Find out how Applause can help you launch digital products your customers love at applause.com.
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