Cryptocurrencies have gained traction in the blockchain space, becoming something of a buzzword. Although this concept has been around for a long time, it has witnessed potential growth in recent years. No doubt cryptocurrency goes mainstream, which could continue even in the years to come. Some prominent and acceptable cryptocurrencies are Ethereum, Bitcoin, Litecoin, Ripple, etc.

“According to a recent report, there are more than 8,000 digital, virtual, or available cryptocurrencies on the market today. (so far in 2021). Furthermore, the value of the global crypto market will rise from $1.5 trillion in 2021 to $2.3 trillion in the foreseeable future.”

Here is the blog for those who want to integrate the crypto wallet into their business or launch a crypto wallet of their own. Read on to collect valuable information on cryptocurrency wallet development.

Cryptocurrency Wallet – Explained

Did you hear about this before? If not, let’s see what it is about in this section briefly. The cryptocurrency wallet is designed and developed to store, manage and transact cryptocurrencies in a safe and likely instant speed. However, its users can check their previous transactions and thus keep an eye on what is inside their crypto wallets.

How does a cryptocurrency wallet work?

Until now, you have a clear idea of ​​the crypto wallet. Now, it is time to know its functions. To know the functionality, you need to understand private keys and public keys as these two terms play a crucial role.

A private key is nothing more than a password for your crypto wallet as it must be kept personal. For the layman’s understanding, it is like a passkey or password for your debit card for your bank account.

A public key denotes the crypto wallet address, which is like the account number of your bank account. This could be known for the purpose of making transactions.

However, the cryptocurrency, digital currency or virtual currency is not stored in physical form in the wallet. Instead, it will be stored on the blockchain, which is a decentralized ledger where the data will be stored securely. Users could send and receive cryptocurrencies of their choice by knowing the public key. As they transacted, they would receive a prompt telling them to enter the private key for authentication. Once this is done, the transaction will be successful.

Let’s look at the various types of crypto wallets

Crypto wallet can be mainly classified into two, namely hot wallet and cold wallet. Clearly, telling the difference between these is quite easily understandable.

Hot wallets, also known as hot storage, are connected to the Internet. These are prone to hacking as they appear to be less secure. This type of wallet comes with the convenience of storing private keys online.

Next is the assortment of hot wallets. Take a look at a brief introduction.

Desk portfolio – It is one of the familiar wallets that can be accessed from desktop or laptop. Desktop wallets will be at greater risk when the desktop is affected by viruses or any other malicious attacks. There are two types of desktop wallets here: full node wallets and light/slim wallets.

Mobile Wallet – This type of wallet can be installed on the mobile device, which allows the instant transaction of cryptocurrencies, since they will be stored in the account. Apparently, this will be the simplest approach to transact as the convenience of QR scanning is available.

Web Wallet – It can be accessed from a browser such as Google Chrome, Safari or others. There is potential for hacking as important details such as private keys are stored in the cloud.

Cold wallets, also known as hardware wallets or paper wallets, in which cryptocurrencies will be stored in offline mode. These are more secure as large cryptos can be stored and managed compared to hot wallets. In this, it significantly denotes the hard copy, which will give details like public keys and private keys.

Security Features to Consider During Cryptocurrency Wallet Development

Listed below are the essential security features that should be given the utmost importance during cryptocurrency wallet development. This will ensure the flawless execution of the trading process safely.

This is the indispensable feature that will ensure safety. Suppose, in the event that a wallet is kept open for so long. The page session will be automatically logged out and after that, users need to enter the credentials again to log in and continue transactions.

For security reasons and to avoid chargebacks, duplicate payments will be detected and then denied. This will greatly increase user confidence.

Two-factor authentication or multi-factor authentication will provide an additional level of security to the crypto wallet. When accessing the crypto wallet, users must provide two or more authentication factors.

The development of the white label cryptocurrency wallet with the enhanced security component greatly improves the security level of the cryptocurrency wallet. However, private keys are replaced by confidential mathematical algorithms. So apart from the users, it is not accessible for others to know the private keys.

Phases involved in the development of multi-cryptocurrency wallets

The following are the phases involved in the development of the multi-cryptocurrency wallet. Before starting a company and integrating the crypto wallet in it, let’s go through these phases to understand what it is all about.

• The first phase is planning to begin with, as you need to decide what your crypto wallet will look like. This is according to the features and capabilities. Therefore, you should contemplate what features should be incorporated, indicating the typical functionality. Make sure to include security features without fail.

• Before proceeding with the implementation, get an idea of ​​how much you will be charged for availing cryptocurrency wallet development services from a reputable company. The most important thing is to choose a suitable company to meet your business expectations.

• Now, continue with the development stages in which the user interface will be framed, ensuring a perfect operation. And most importantly, secured transactions must be insured. After this, the testing stage should be given the highest priority, as the developed crypto wallet should be bug-free.

• The final stage is to install the designed and developed crypto wallet in your business. In case of downtime, you can take advantage of the technical support and maintenance of the cryptocurrency wallet development company.

Conclution

Straight to the end point of this blog, as a final thought, developing the crypto wallet is not a complex thing in the age of blockchain. However, white label cryptocurrency wallet development would make the process easier as it comes with the advantages of instant launch at a reasonable price compared to cryptocurrency wallet development from scratch.