How to Create a Cryptocurrency Wallet App: an In-depth Guide for 2021

Modern tech startups are striving to break down the boundaries between the virtual and real world with blockchain technology that is changing our world. Distributed technologies in mobile applications allow today to integrate cryptocurrency payments along with other internet payment options. You can build a bitcoin wallet to suit the business needs or integrate it for use as a payment method.

In this article, we are going to discuss cryptocurrency wallets, their types, benefits, main features, and challenges.

How to build a bitcoin wallet?

Now it’s time to move on to the main stages of Bitcoin wallet development. The first thing you should know is that there are two options: you can use ready-made templates and a set of tools to create an application, customizing it to your needs, or develop your wallet that will ideally fit your requirements from scratch.

Creating a custom wallet application

There are few open-source standard libraries available on the market. They can be used as a basis for your future app. The standard library provides the necessary functionality, configures the wallet for blockchain, and executes financial transactions.

Stages of developing a cryptocurrency wallet application

1. Installation

Download the API from the respective site

2. Create

Click the corresponding button in the menu to create a new wallet.

3. Setting

Provide your wallet name and set up permissions for outgoing and incoming transactions.

4. Integration

Select the third-party programs that you need (for example, to check the balance or create an address) and integrate them with your wallet.

Developing Bitcoin wallet apps from scratch

The other variant is to create your project from scratch. Bitcoin code is open source and free. So, it’s not a problem to find all the standards and create an independent application that fits personal preferences and business needs. This kind of development is more difficult and expensive, as it requires more time, effort, and knowledge. However, a custom application is always more valuable as it is perfect for all needs.

Main features of crypto wallet applications

Authorization

In this function, users can register or fill out a form with their keys to access their bitcoin wallet. One way to make sure your app is tamper-proof right from this first adaptation step is to add Google two-factor authentication. By adding 2-Step Verification to an application, companies can add an extra layer of security that conventional non-cryptographic applications typically avoid.

Notifications

Using the push notification function, the administrator will be able to notify the users of the cryptocurrency application about the price of their digital currency, the success, and failure of the transaction, adding an address, etc. Thanks to this function, users will be able to stay connected. receive information about all actions in your account in real-time.

Security

A common but equally important part of a cryptocurrency wallet app is the security feature it comes with. Based on Blockchain, a technology known to revolutionize mobile app security, you must provide your users with the ability to change their PIN, password, or any other personal information they wish to change in the app.

NFC support

NFC support works on an asset transfer mechanism based on the proximity of the device. This is usually done when the sender clicks on the NFC tag, obtains the recipient’s wallet address and processes the transaction.

12-word mnemonic phrase

It is one of the main features that make it easy to restore the wallet when the wallet is deleted or moved to another device. The mnemonic passphrase is usually attached to the private keys so that they can be matched with security features.

Challenges of crypto wallet development

The crypto wallet development is a complicated task. So, you should be ready for the pitfalls you may face. Here is the list of the main of them.

Regulation

The legal status of cryptocurrencies and blockchain technology varies significantly from country to country.

Initial costs

Blockchain promises long-term cost savings, but its implementation requires a high initial price.

Integration with legacy systems

To migrate to a blockchain-based system, a company must either completely redesign its existing system or integrate it with a blockchain solution; both processes can take a lot of time, money, and experience

Power consumption

Blockchain networks require a significant amount of computing power to function; this can be a limiting factor for many companies.

Read more: https://code-care.com/blog/cryptocurrency-wallet-app-development/