Tech progress continues to destroy borders between the virtual and real worlds. And blockchain is one of the core techs behind this process. Paying in crypto in 2022 comes as no surprise. But nowadays, we are able not just to use but also create a crypto wallet.
Today we are going to talk about what is the deal of cryptocurrency wallet development, how to build a FinTech app, what profit it can give, and how an owner can monetize the crypto app to stand out among competitors.
Crypto Wallet Market Overview
As around 30M users (about the population of the US), have already got their feet wet in the cryptocurrency world. This explains that if you start searching for a crypto wallet app onGoogle Play or App Store, you’ll be up to a looong scroll. And new apps are constantly popping up
So it’s safe to say that the popularity of crypto is not planned to stop anywhere soon. Here are some stats to see it in perspective:
- As of Nov 2022 the entire crypto market was worth over $200 billion
- Over 10K coins already exist
- $321.8 billion is the total cryptocurrency market cap
4 reasons why you should build a Bitcoin wallet app
It’s hard to imagine a Bitcoin transaction without a cryptocurrency wallet app. But what is it exactly? E-wallet is a secure app that can keep, receive, and transfer Bitcoins and store digital keys.
We know that there are so many Bitcoin wallets already on the market, is it worth it to create crypto wallet in 2022? Let’s explore the top 5 benefits.
#1 High Security Level
All the transactions are signed with a unique signature. Once a deal is initiated, components can’t be changed. It guarantees an entirely safe and reliable transaction between the sender to the recipient.
#2 Fast & Easy Transactions
E-wallets make traditional payments between different banks easier and faster. But note that transactions between international institutions may take longer, especially for large amounts of money. But thanks to blockchain cryptocurrency solutions it should be several hours max.
The main difference between crypto transactions and traditional banking is anonymity. Crypto transactions don’t require personal info, credit history, or anything like that, which provides an additional layer of security.
The only thing required for e-payments is a wallet address. It provides all the information using digital keys (open and closed ones) to make payment happen, remaining anonymous to both parties.
#4 Independency from the Economic Situation
Economic crises happen to all countries, resulting in people losing their deposits (in the traditional banking system). And in comparison cryptocurrencies, as they have decentralized support, are not affected by inflation.
Crypto Wallets Types (+ Examples)
Before you start developing a crypto wallet app, you need to decide on what type of wallet you want. Let’s explore the main ones!
The first question to ask yourself is whether you want to build a centralized or decentralized wallet, also commonly referred to as custodial and non-custodial. But what’s the difference?
|Custodial crypto wallet||Non-custodial crypto wallet|
|Other people can hold custody of coins||Users have 100% of control|
|KYC while onboarding/off-ramping||No or min KYC|
|Possible to restore lost password||Loss of password = loss of funds|
|May cover % of fees||User always pays all fees|
And one of the apparent types of crypto wallets is division depending on a device it will be used:
For example, there are crypto wallets that operate as a browser extension, others as native apps (for iOS or Android), or even web apps, similar to Gmail. And the best thing is that you don’t need to pick just one platform, as offering your crypto wallet on different platforms will provide a smoother experience, as it will potentially reach all categories of users.
By coins availability
It might come as a surprise, but not all wallets out there support all coins. Why? Mainly because they exist on different blockchain platforms. E.g. Bitcoin operates just on the bitcoin network, while Litecoin or Dogecoin trades on Ethereum. So, if you want to develop the best crypto wallet it should be a multi-currency one, aka be connected to different blockchain networks.
Popular Crypto Wallet Misconceptions—Debunked!
Developing crypto wallets might not seem that hard at the first glance, but we think you’ll benefit from knowing more about how crypto wallets operate. There are many misconceptions that many believe to be true, and we are here to debunk them.
- Users can switch from your app. Well, that’s partly true. If you have a non-custodial wallet, users switch to another app. But if you offer a custodial wallet, users will have to stick with your application to access their crypto.
- Web wallets are less safe. Even though mobile and hardware wallets might be more secure out-of-the-box, that doesn’t mean that web wallets are necessarily less safe. Any crypto app can be hacked, so you must educate your app’s users on cyber hygiene.
- All transactions are invisible. Well, it’s true, unless someone knows your address. One of the main traits of blockchain technology is transparency, and as all data is stored on the blockchain a person can track your transactions if they know your address.
- It’s possible to generate a new password for the crypto wallet. For non-custodial wallets, losing your password means the loss of funds. Yet, if you use a custodial wallet, you’ll still be able to recover access to the cryptocurrencies.
Crypto Wallet Key Features in 2022-2023
Another important step of a blockchain wallet app is picking the features you want it to have. Here are some basic ones that any crypto wallet must have:
- Profile supporting adding a bank account/credit or debit card
- QR codes for transactions
- Fav addresses
- History of transactions
- Prices & charts
- Security features (like an auto blur, encryption, FaceID, multi-factor authentication, etc.)
These are all basic features, but depending on your creative idea you can add up to the experience or make new features as updates after the initial launch. Want to get some pro ideas on how to stand out among competitors? Read on and learn what cool features you can add to your new crypto wallet app to attract more users and get a bigger profit.
Ideas for a Bitcoin Wallet Boost
Enhance your crypto wallet with additional advanced features, so it’s attractive to customers.
- Paper wallet import
- Airdrop listings
- Quick web login
- Fees adjustment during transactions
- Support of various coins (out of the gate)
- Schedules of purchases
- Custom notifications on price changes
- Light/Dark mode switching
- Integrations with different DeFi products
But don’t go overboard—keep it simple and affordable, at least in the beginning. Concentrate on developing your MVP first, and then develop your crypto wallet with time.
Difficulties of Bitcoin wallet development
As with any development process cryptocurrency wallet development comes with some challenges. Let’s take a look at the most common of them:
- Blockchain forks (need to choose which version your wallet will support)
- Integration of multiple blockchains (to be multi-coin)
- Adoption (many users have no idea how crypto wallets work)
- 1 chance to make it (crypto products rarely get 2nd chance)
- Finding experienced blockchain developers
The last challenge of crypto development is one of the core ones, as a good blockchain development team can either make it or break it.
Crypto Wallet Development Tech Stack
First of all, different teams have different approaches to what techs to use, mostly depending on their experience. So tech stacks may vary, though there are some most-used blockchain options.
Crypto mobile apps
These are supported by Google and Apple and offer the most advanced toolsets.
Web apps as crypto wallets
These are modern web development tools with plenty of instruments.
- React Native
If you decide to create a cross-platform application that can work both on desktop browsers and smartphones.
Specifics on server-side
- Kubernetes and Docker (for scalable architecture)
- Golang and Solidity (minimum to take care of smart contracts)
- Python, Ruby, etc. (for back-end admin portal)
Well, we covered a barebones tech stack for developing a crypto wallet. If you want more about what tech stack can cover your creative idea, book a free consultation with our blockchain expert.
5 Steps to Create a Bitcoin Wallet
- Develop your crypto business idea. The industry is still in the infancy stage, there is still much room for cool apps. As new challenges appear, there is a need for a solution that can be your blockchain product.
|Concentrate on a draft version of your crypto wallet|
|Set a clear target audience|
|Choose monetization strategy|
- Find a development team. Ideas are worth nothing without professional realization. That’s what a blockchain development company like ours is for. But what specialists you’ll need?
- Product managers
- Project managers
- UX/UI designers
It’s possible to hire all of them separately, but it will take hiring and onboarding time. Which makes a one-stop blockchain dev company a smarter option.
|Pick only dev companies that specialize in blockchain and crypto development|
|Check their portfolio of relative apps|
|Keep away from companies that give a quote without asking any questions|
- Build an interactive prototype. After you hire your development team there are 4 main stages you have to go through:
- Making the app’s prototype
- Developing an MVP
You may think why do you need to pay for a prototype before creating an MVP? The reason is cost, coding is quite expensive, and a prototype costs less. Also, a prototype helps to find the ideal balance of features and UX and is perfect for pitching your idea to potential investors.
|Share your interactive prototype with your TA to get feedback|
|Test your prototype before proceeding to the next step|
- Create an MVP. In this step, you heavily rely on your development team and will need to make decisions on what kind of a crypto wallet you want to develop (custodial/non-custodial), which platforms you want to target from the get-go, APIs and SDKs, and other development-related things.
|Insist on Agile development|
|Ensure that your team works only with well-tested versions|
|Have a security audit after your crypto wallet is developed|
- Launch & Maintenance. And that’s the final step. As with all apps, you’ll need to upload your crypto wallet apps to Google Play and App Store. Also, the additional step is to disconnect your wallet from a test blockchain and connect it with multiple blockchains (depending on your project)
|Stress test your servers to see if they can handle the influx of users|
|Release to a limited number of users first|
|Be ready to handle user requests|
As you can see there are many nuances of crypto wallet development. But with a good idea and a professional team, it’s possible to create a successful app that will bring millions in revenue.
If you are interested in partnering for a new crypto wallet with us, feel free to reach out to our experts and get a free consultation with a niche developer.
Can I develop my own crypto wallet?
Yes. You can develop a cryptocurrency app with a help of specialized developers. If you are looking for help, check out our blockchain development services.
How do I start a crypto wallet business?
To start a crypto wallet business: get a creative idea, disease on monetization model, contact developers, create a prototype and test it, develop an MVP and test it. After you get all clear, launch your crypto wallet with a good marketing campaign.
How much does it cost to develop a crypto wallet app?
Everything depends on the size of your app, the tech stack required, and the country which you choose to hire developers from. On average it’s around $100K.