How to create cryptocurrency wallet app?
What is a cryptocurrency wallet?
A crypto wallet is a program or physical device that allows you to store encrypted currency and allows you to send and receive encrypted transactions. An encrypted wallet consists of two key pairs: a private key and a public key. The public key is derived from the private key and is used as the address for sending encrypted currency to the wallet.
An important part of the wallet — and the part where new users often find themselves in trouble — is the private key. The private key is like a secure key. Anyone with access to the wallet’s private key can control the balance stored there.
But unlike a safe, cryptocurrency users who hold private keys and use non-custodial wallets (ie wallets that are not listed on exchanges or other third parties) for transactions become their own banks.
What are the types of cryptocurrency wallets?
Encrypted wallets are divided into two categories: software wallets and hardware wallets.
Software wallets are just desktop programs or browser extensions that can easily send, receive and store encrypted currency. A hardware wallet has a similar purpose, but it is a physical device that can be plugged into a computer.
Software wallets are sometimes called hot wallets because funds are stored online. The hardware wallet stores the private key offline or in the cold storage.
Hardware wallets
A hardware wallet is a small device that can store cryptocurrency offline. “Hardware wallets keep your keys away from your phone or computer,” Saya Dietz said. “Usually you connect your hardware wallet via USB. It is more secure because all signatures come from your computer.”
A typical hardware wallet costs about $100, whether it is giving or receiving. They are often more difficult to use than software wallets.
Most hardware wallets interact with your computer in one of three ways:
- Web interface
- Apps created by the company
- Independent software wallet
Software wallets
A software wallet is a computer program or mobile application that stores private keys on the Internet. Software wallets are unique to each cryptocurrency, while hardware wallets usually support multiple currencies.
Cryptocurrency wallet development reasons
A cryptocurrency wallet is a 100% secure system that allows you to receive, send, and manage cryptocurrency from a centralized portal, making the process efficient and easy. It can also help investors manage token transactions.
Top cryptocurrency wallet app features
1) Make Bitcoin transactions easier and faster
The most important function of the cryptocurrency wallet application is to make cryptocurrency transactions simple and instant.
2) Two-factor authentication and password protection
2FA, also known as two-factor authentication, is an additional layer of security that requires not only a username and password, but also some personal information owned by a single user.
3) A new public key is automatically generated for each new transaction
This is a must-have feature for building cryptocurrency wallet applications because it works wonders in terms of privacy and security. This will make it difficult for fraudsters to track ownership of coins, because each private key has a corresponding public key, and each public key has an address.
4) Extra timed logout
This function can add an extra layer of security to ensure that the wallet is automatically exited in time.
5) Periodic billing and billing
Periodic billing and billing are an important feature that can save a lot of time and make users’ lives easier.
6) Push notification
Push notifications will notify users of your app when they receive, send, or store coins.
Main stages of a cryptocurrency wallet app development
Here is how to create a mobile cryptocurrency wallet application in three steps:
- Use Bitcoin libraries for Android and iOS. Since most cryptocurrencies are open source, you don’t need to reinvent the wheel to create a cryptocurrency wallet for personal use. It is sufficient to use a special library like Bitcoin SDK or Coinbase SDK. Your cryptocurrency wallet company will recommend which technology is best for your project.
- Use various application programming interfaces (APIs) to synchronize your encrypted wallet with the blockchain. Using the distributed ledger API will allow you to easily synchronize your cryptocurrency wallet with the blockchain ecosystem. The most popular APIs are Coinbase, Factom, and Bitcore.
- Use Bitcoin as a payment method. If you want your users to use bitcoin to pay on your website, you need to use special services such as BitPOS or BitPay to integrate bitcoin payments into your cryptocurrency wallet.
How to make your cryptocurrency wallet app secure
Currently, transactions based on the principles of blockchain are the safest transactions. However, due to the high cost of Bitcoin, user data and access keys need to be secured. Here are some additional steps:
- Back up your wallet. You need to make multiple backups of your mobile wallet in some hard-to-reach places.
- Two-factor authentication. In addition, your encrypted wallet must be equipped with a two-factor authentication system. As the second factor, you can use a unique personal identification number or biometric data.
- Continuous security updates. The development of mobile encrypted wallets will not end with the creation of the wallet. You need to provide users with additional security updates to keep it up and running at all times.
- Multi-signature. Multi-signature is a good choice for establishing consensus among group members. For example, if a company uses a cryptocurrency wallet profile for commercial purposes, and there are multiple authorized users, then each person can only dispose of the cryptocurrency after everyone else agrees.
