Have you ever had a dream or thought of spammers stealing your digital assets like cryptocurrencies, NFTs, etc., in the middle of the night.
If yes, it might’ve been one of your worst nightmares, right?
Modern technologies have many life-saving advantages and vulnerabilities as well. It’s not just a statement, but it is a fact!
People understood the importance of digitalizing their assets shortly after the emergence of cryptocurrencies and blockchain technology. Cryptocurrency has gained immense popularity, and its user base has increased massively in the last couple of years.
Almost 20% of the human population own one or more cryptocurrencies like Bitcoin, Ethereum, etc., while you and I are no exception.
According to Statista, there are more than 18000 cryptocurrencies and around 80 crypto wallets to store them.
You might be wondering about crypto wallets, in case you’ve never heard of them!
In a nutshell, a Crypto wallet is a digital wallet that allows users to store, send and receive cryptocurrencies like Bitcoin, Ethereum, etc.
If you are one of the crypto enthusiasts, you might be tirelessly searching for the best crypto wallet to securely store and trade your purchased cryptocurrencies.
To save you from the nightmare, we’ve put some effort into gathering some essential things, you should know about crypto wallets such as their functions and types, working mechanisms, crypto-wallets for different platforms, white label crypto wallets, etc.
All the collected information has been carefully organized and written in this blog to help you learn more about crypto wallets and thrive in this digital era.
You may be a warren buffet of crypto trading but without the proper understanding of crypto wallet you might end up with nothing on wall street. So, read this section to get a grasp on the concepts of a crypto wallet!
Everything you need to know about crypto wallet
What is a Crypto wallet?
A Crypto wallet can be a device, application, or service that helps cryptocurrency holders to store, retrieve and send cryptocurrencies like Bitcoin, Ethereum, etc. in addition to storing and safeguarding their public or private keys to facilitate cryptocurrency transactions.
Do I need a Wallet for crypto?
Yes, owning a crypto wallet gives you full control of your crypto holdings and their security keys.
Many Cryptocurrency exchange platforms like Binance, Coinbase, etc., offer in-built wallet features with insurance policies to protect users’ currencies in case it’s stolen so it is highly recommended to opt for crypto-wallets.
What are the different types of cryptocurrency wallets?
Crypto wallets are broadly classified as
- Online or web wallets
- Mobile wallets
- Desktop wallets
- Hardware wallets
- Paper wallets
In the above list, the first three types belong to hot wallets, and the next three belong to cold wallets.
|Hot wallet||Cold wallet|
|A hot wallet requires an internet connection to facilitate crypto storage and transactions.||Cold wallets let you store cryptocurrencies in suitable physical devices and no internet connection is required to preserve your crypto holdings.|
|A hot wallet supports online storage and is more convenient than cold wallets but susceptible to internet attacks.||It is less flexible but safer than hot wallets.|
|Web, desktop, and mobile wallets belong to this category.||Hardware and paper wallets are the two types of cold wallets|
How crypto wallet works technical?
Technically, a crypto wallet doesn’t hold your cryptocurrencies like the way normal wallets hold your money. In general, crypto wallets allows you to store public and private keys (I’ll describe public ad private keys later in this blog).
All your cryptocurrencies are preserved on the blockchain network, and you can access them using your private keys, which are stored and safeguarded inside your crypto wallet.
How do I choose a Crypto wallet?
The following factors must be taken into account while choosing your crypto wallet.
What is the safest crypto wallet?
The most secured crypto wallets to store your cryptocurrencies are
- Coinbase wallet
- Edge wallets
- Ledger Nano X
- Trezor Model T
- Ellipal Titan
- Coolwallet Pro
Have you got an insight into the basics of crypto wallet and its types?
If yes, then it’s great! However, if you want to be George Soros of the cryptocurrency world, you need to learn about some terminologies and the functions of crypto wallets. So, let’s dive deep into some of the technical concepts.
Features of Crypto wallet and crypto development services
How are crypto wallets created?
Users’ crypto wallets can be created in one of the following ways
- Applications like Coinbase, Ledger Nano X, etc., have an in-built wallet feature. When you buy cryptocurrencies for cash from these applications, a new wallet is automatically created to keep your crypto holdings known as a Hosted wallet.
- A non-custodial wallet is created in the same way as a hosted wallet but you can’t buy cryptos for money using this type.
- Hardware wallets can be created by installing the software on the supported physical devices. Once installed, you can transfer your cryptocurrencies to the new hardware wallet.
What language are crypto wallets written in?
Following tech, frameworks, and tools used for developing a crypto wallet.
Frameworks: Angular, React, React-Native, Ionic
What are public and private keys in crypto?
Public Keys are cryptographic code (paired with private keys) that allows you to receive cryptocurrencies. It’s like an account number to which the cryptocurrencies are transferred.
When someone sends you digital currencies on the blockchain network, you need Private Keys to unlock that transaction and to verify that these cryptocurrencies are sent to you.
How do I get my private key on the crypto wallet?
Applications like Coinbase and Ledger Nano X generate your private keys once you set up the wallet in their platforms.
You can develop your private keys if you are a python expert and have significant knowledge of cryptographic functions.
What are the features of crypto wallet?
The most beneficial features of crypto wallets are:
- It offers many passive income sources like crypto staking, consultation services, etc.
- OTC (Over The Counter) trading facility and multi-sig features for transaction authentication.
- Cross-platform compatibility, two-factor authentication, and in-chat transactions.
- Allows you to earn rewards like bitcoins to validate the transactions on the blockchain network.
- Both online and offline types are available with fewer transaction costs.
- You can buy from online or offline stores that accept cryptocurrencies.
Cryptocurrency wallet development services
Many firms offer cryptocurrency development services to help users build different crypto wallets, store cryptocurrencies; manage crypto assets; and earn passive income.
Popular crypto wallet development services are:
- Defi wallet development
- NFT Wallet development
- Multi-currency wallet development
How does multi-crypto wallet work?
Multicurrency crypto wallet works the same way as other wallets i.e., it allows you to perform transactions using public and private keys.
The difference is that a multi-crypto wallet allows you to store, retrieve and send multiple cryptocurrencies using different public and private keys. Exodus is the best multi-currency crypto wallet.
What is a Defi wallet?
It is a non-custodial wallet, and only people with private keys can access the digital assets. It allows you to store your crypto holdings and transact on Defi platforms.
In addition, it allows you to earn passive income through yield farming and Defi staking on popular Defi exchange platforms.
Should I store all crypto on one wallet?
It completely depends on the type of wallet. For example, it is not suggested to keep all your cryptocurrency in a hot wallet since they are vulnerable to cyber-attacks.
On the other hand, you can store any number of cryptocurrencies and their private keys on your own personal “cold” wallet (Crypto wallet hardware type).
How to create an NFT wallet?
As an individual, you can easily create your NFT wallet by
- Converting your currencies to ETH (Ethereum).
- Then store your ETH in the MetaMask wallet.
- Connect your MetaMask wallet to your NFT marketplaces like opensea, rarible, etc.
- Finally, bid on NFTs available and buy them using your NFT wallet.
Now, you might be intrigued to learn A to Z about crypto wallets!
But, it takes at least a book to speak entirely about “crypto wallets” and we would like to wind up this blog by saying about some important things like cost, time, and the fastest way to build a crypto wallet.
Time and cost to build a crypto wallet
How much does it cost to build a crypto wallet app?
A crypto wallet mobile or desktop application cost usually depends on many factors like platform, scope, features, and functionalities you want to integrate into your crypto wallet application.
Connect with us to get a quote!
How long does it take to develop a crypto wallet?
We can’t estimate the exact time to complete the cryptocurrency wallet development process. It depends on various factors like the application’s features, scope, the expertise of chosen wallet development company, etc.
Reach us through email, mobile, or website and we are happy to help you resolve your queries and concerns related to your crypto wallet app cost and time to build it.
White label cryptocurrency wallet development
A White label cryptocurrency wallet is a ready-to-launch solution that helps firms instantly integrate crypto wallet applications into their platforms.
It is also customizable and allows you to save significant money and time while matching the quality and security of the traditional crypto wallet development services.
How do I create my own Crypto wallet?
If you want to develop a highly secured crypto wallet with multiple functionalities, you could contact the best crypto wallet development company like Bckodes.
While selecting the firms, you should be careful and ensure that the chosen firm is an expert and has successfully delivered various crypto wallet development projects.
Now, the crypto business is flourishing and the investments made in crypto wallets are considered as wise. But, what will be the case in 2022 and beyond?
Let’s see about this in the upcoming part!
The total market capitalization of the crypto industry was an astonishing figure of $3 trillion as of November 2021. According to Binance, the crypto market cap might surpass its record by the end of 2022, considering the ongoing demand for cryptocurrencies and their niche.
So, the search and demand for the secured crypto wallet with more cutting-edge functionalities will rise, leading to the development of more advanced cryptocurrency wallets.
I suggest you approach us to develop an impeccable and full-fledged crypto wallet application if you want to launch your crypto wallet application to avail the remunerative benefits of this flourishing market.
We, at Bckodes, offer robust cryptocurrency wallet development services such as Defi wallet development, NFT Wallet development, Multi-currency wallet development, and ICO wallet development services.
Our Cryptocurrency wallet development development services are tailor-made, affordable, and customizable according to your platform requirements and come with numerous benefits like robust infrastructure with multi-layer security, and easy platform integration with cross-platform compatibility.
Connect with us to know more and to initiate your multi-functional crypto wallet development process to make huge in this thriving industry.