A Brief Overview of Crypto Wallet Development

Between December 2019 and February 2022, the number of cryptocurrencies increased by almost 350%, from 2,388 to 10,656, according to Suffescom Solutions Inc. To manage their cryptocurrencies securely, users need a crypto wallet to store and shield their digital currency from unauthorized access.

The idea of a cryptocurrency wallet is simple—and it accounts for sending and receiving payments—but the technology that powers them is more complex and presents challenges for developers. Digital keys and cryptocurrency transactions on the blockchain network must be managed efficiently and effectively by wallets for cryptocurrencies while providing a seamless user experience.

What are the different types of crypto wallets?

Cryptocurrency wallets can be divided into several categories. Due to the lack of a digital user interface, this article does not cover hardware wallets, which are similar to a USB stick and contain the token and private key, or paper wallets, which are documents including copies of the wallet's public and private keys. Instead, we'll look at various software wallets, such as online, desktop, and mobile wallets.

Digital wallet features

Consequently, whatever digital characteristics are required for best-practice digital wallet app development? Here is a summary:

Usability

Cryptocurrency wallets must, above all, provide a simple user interface. The financial industry is placing more emphasis on UX, and customer expectations for financial apps are rising due to the growing popularity of challenger banks and fintech. If the cryptocurrency market is to remain competitive, developing crypto wallets must consider the following usability factors.

Robust User Interface

It is simple for developers to forget that non-technical end users are their target market when creating a high-tech application like a cryptocurrency wallet. Along with developing the underlying technology, attention must be given to the app's design, navigation, and user manual. Always remember that there is fierce competition in the market for cryptocurrency wallets; if an app is not faultless, users will download another.

Push notifications

The price of coins can change due to the erratic nature of the cryptocurrency market. Users keep a closer eye on exchange rates than customers of traditional banks. Users do not have the time or energy to track expenses round-the-clock without full-time traders. Crypto wallets should send updates via push notifications to keep users engaged and from losing track of their coins. Inform users when a specific price target is met or after they have been paid.

Backups

Developers should provide users with the option to back up their wallets to safeguard user funds against hardware or software failures. While creating a backup on their laptop storage or an SD card would benefit users, not everyone will think to do this. Proactively integrating safe cloud storage services like Dropbox or Google Drive into the wallet can show customers that you care about their money.

Compatibility with multiple operating systems

Developers must plan for every operating system if they want to appeal to the widest range of potential users. Cross-platform mobile app development is the best option because it makes the development process easier and offers more flexibility. It also gives developers the advantages of quicker development times, lower costs, faster deployment, and continuous management capabilities.

Security

When creating a crypto wallet, security must be a top priority. Without the ability to securely store cryptocurrencies, nothing else matters in the eyes of the user. Cryptocurrency wallets should provide the same security features that users anticipate from a traditional banking app to gain user confidence.

Two-Factor Authentication

A two-factor authentication login for a crypto wallet shields user funds from potential hacks. Developers should ask users to confirm login attempts from unknown IP addresses in addition to asking users to verify their identity when they try to log in.

Automated logout

For a cryptocurrency wallet to be successful, automated logout is required. Wallets should automatically log the user out after a period of inactivity or after they exit the app to reduce the chance that others will be able to access the user's account. Customers of traditional banks are accustomed to this because it is an industry norm.

Local storage of the private key

Local private key storage is yet another essential component of cryptographic wallets. Crypto wallets should automatically store private keys locally on the user's end device rather than on the server, where they can be easily stolen.

Next steps

In the upcoming years, cryptocurrencies' significance will only grow, as will the demand for cryptocurrency wallets. This shift will quicken as a result of the recent NFT boom.

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 to edge ahead of the competition, implementing the features mentioned in this article should be the bare minimum for blockchain wallet development services.

To create truly successful crypto wallets, developers must extensively test for functionality, UX, localization, and accessibility. After all, great features mean nothing if they don't' work properly.