Involving in Crypto wallet development helps in easy management of online payments.
In this blog, we will explore how Crypto digital wallets work, their major types, how the digital currencies of the users are stored, and their different use cases.
What is a Cryptocurrency e-Wallet?
It acts as a safe storage mechanism for holding the coins and tokens of a user with adequate security measures to prevent unauthorized access.
Benefits of Crypto Wallet Development:
- The wallets are easily installable on numerous platforms and operating systems. It must be highly suitable for the device that is being used.
- Security measures are taken by protecting the wallet with a PIN and a strong password. Hence, there is no chance of hacking or phishing attacks to take place when a transaction is being processed between two parties.
- Crypto wallets are immune to government regulations and laws. Hence, there is no possibility of the funds of the users getting frozen due to action taken by any authority. The system is completely decentralized and there is no single point of failure.
- Funds can be transferred instantly and users need not undergo any verification process. When compared to other traditional methods like bank transfers or wire transfers, the transaction fees are very low.
- It is protected against inflation. Hence, the value of the funds of the users will not change under any circumstances as there is neither an increase nor decrease. This leads to greater confidence and trust while making online payments.
- Users can get full access to their transaction history anytime and use it round the clock for the transfer of funds to any user’s wallet address.
The common kinds of Crypto e-Wallet Development
- Software Wallets — It exists in the form of a software or application that can be easily installed on a computer or a smartphone. The users have full control over their crypto holdings and need not hand over their funds to anyone.
- Web Wallets — It is hosted online by a third party. It is very easy to handle. The users must note down the security measures taken by the third party beforehand to avoid any unforeseen circumstances.
- Hardware Wallets — The private keys of the users will be stored on a hardware device like a USB. It is compatible with multiple web interfaces. To use a hardware wallet, a user must connect it to a device enabled with Internet and enter a PIN to protect their funds. Hardware wallets are quite safe as all the coins are stored offline.
- Paper Wallets — A pair of private keys and public keys will be generated for a user by utilizing a software application. Private keys act as the password while public keys act as the digital address. A transaction is made possible by printing the private and public keys and when they perfectly match with each other. QR codes can be scanned and the keys can be added manually. Paper wallets can be combined with software wallets for the smooth transfer of funds.
The core features that a Crypto Digital Wallet developer will incorporate
- Two-factor authentication is an extra layer of security. Apart from typing the username and password, a secret code or an OTP has to be submitted to gain access to the Crypto e-wallet. The user has full freedom to activate this feature in his wallet or not.
- Real-time push notifications are highly essential so that the user knows what is happening in his wallet. All the essential information like pricing, market movement of cryptocurrencies, and pending transactions will be available at his fingertips.
- A QR code scanner is important to enable the quick execution of payments. It is user-friendly, contactless, completely secure, and works automatically. Coupon codes can be scanned by the users to get discounts and save some money. Images of wallet addresses and contact information of the users can be shared quickly via a QR code.
- Multi-crypto support is crucial as each user will prefer to use a set of cryptos for his daily trading activities. It makes it easy to transfer any kind of crypto from one wallet address to another.
- Security measures like biometric authentication, facial recognition, fingerprint authentication, multi-signature vaults, and end-to-end data encryption enhance the credibility of the Cryptocurrency Digital wallet. It avoids the risk of hacking and other fraudulent activities.
- The other features needed are auto-denial of duplicate payments, real-time conversion rates both for crypto-crypto and crypto-fiat, recurring billing and invoicing, the secure backup of the users’ data, optional session logout, and multilingual technical support.
What will be the budget for Crypto e-Wallet Development?
The cost for Crypto e-Wallet development will depend on the features to be integrated, the complexity of the application, the number of team members involved in the development process, the consensus mechanism, and the kind of technologies used.