How to Build a Blockchain Wallet: A Beginner’s Guide
People are going to remember the 21st century as the era of cryptocurrency and blockchain. When we talk about cryptocurrencies or Decentralized finance, one of the things that no one misses out on is Blockchain wallets. Imagine owning cryptocurrencies worth hundreds of dollars. Or buying an in-game asset using tokens in the metaverse. Where will you keep your cryptocurrencies? How will you pay or transfer your cryptocurrencies? You will need a blockchain wallet to securely store, manage and transfer cryptocurrencies. A blockchain wallet app is software built on the blockchain network that protects your private and public keys. It also enables you to seamlessly transfer cryptocurrencies. You need a blockchain wallet for accessing all Defi services, metaverse, web3 games, and other web3 services. It’s surprising that there were over 82 million crypto wallet users worldwide as of August 2022. That’s not all! The revenue from the crypto wallet development services and blockchain wallet app will reach $48.27 billion by 2030.
Entrepreneurs have realized the value of blockchain wallets and are eagerly looking for blockchain wallet development companies to build a blockchain wallet app.
While everyone is on the run to build a blockchain wallet, very few of them know how to build one. Most businesses jump into blockchain wallet development without considering important features to integrate, monetization models to apply and more.
Do not worry! We are here to help you with our ultimate guide on blockchain wallet app development.
What is a Blockchain Wallet?
A blockchain wallet is software where you can securely store and transfer your cryptocurrencies. However, unlike a physical wallet, you cannot actually store your cryptocurrencies. It is because cryptocurrencies are cryptographic codes.
So what does a blockchain wallet store?
A blockchain wallet stores your private keys. You must have heard the famous line “Not your keys, not your crypto”.
Your crypto private keys are like your bank password. Anyone who possesses your private keys will have the access to your cryptocurrencies.
That is why, we need blockchain wallets to keep our private keys safe. This eminent need to protect private and public keys has created a demand in the market for a secure blockchain wallet.
Entrepreneurs around the globe are looking to capitalize by meeting the demand of the crypto market. Businesses are actively engaging in blockchain wallet development to build feature-packed and highly secure blockchain wallets.
How does a Blockchain Wallet Work?
When you set up your blockchain wallet, it generates two keys:
- Public keys
- Private keys
You share your public keys with others to receive cryptocurrencies. While you must keep your private keys safe. You should note that you should never share your private keys with anyone in any circumstance.
When someone is sending you his cryptocurrencies, he will use your public keys. Further, he will use his private keys to sign off the transaction.
That’s not all! When you are sending cryptocurrency, the private keys of your crypto must match the public keys of the receiver. Only then the transaction will be successful.
Advantages of Blockchain Wallets
Blockchain wallets are also sometimes known as crypto wallets. These wallets offer a bundle of benefits to the users as well as the wallet entrepreneur.
Here are some notable advantages of a cryptocurrency wallet.
1. Secure
A blockchain wallet securely stores your public and private keys. Therefore, keeping your cryptocurrencies safe.
2. Instant Transactions
You can instantly send and receive cryptocurrencies using a blockchain wallet. The best part is that the transactions are safe and secure.
That’s not all! Blockchain wallets facilitate transactions without the involvement of any third party. That’s why the transactions are cheaper and instant.
3. Easy To Use
Blockchain wallets are designed in a way that is very simple and convenient to use. It is similar to your payments app. Even sending and receiving crypto is also very much similar to how you make payments on the app. The only thing you need to be very careful about is the private and public keys.
4. Low Transaction Fees
Before the cryptocurrencies and wallets, cross border payments were very expensive. However, things have changed with blockchain wallets.
Now you can make cheaper and instant cross border payments in crypto via your blockchain wallet.
5. Support Multiple Cryptocurrencies
With the growing Defi trends, people are looking for multichain wallets. These wallets are compatible with multiple blockchains and their native currencies.
Thus, a wallet that supports multiple cryptocurrencies allows users to keep all their crypto in one place securely. In fact, users can also do easy currency conversions and transactions in multiple cryptocurrencies.
Why Should You Consider Blockchain Wallet App Development?
There are reasons why web3 brands and crypto associated companies are launching blockchain wallets. They have seen the immense growth of the crypto industry in the past few years and the demand for a user-friendly and secure crypto wallet.
These web3 brands are utilizing the market demands to build crypto wallet app that meets the preferences of the users.
Here are some of the reasons why you should build a blockchain wallet app.
- The crypto industry is constantly growing and is a prominent part of the decentralized financial ecosystem.
- The growing Defi trend is also pushing the crypto wallet market.
- The mass blockchain adoption has promoted the growth of cryptocurrencies and digital tokens. This has simultaneously promoted the growth of the blockchain wallet market.
- The rising metaverse trend and the NFTs’ popularity also support the crypto wallet industry.
- As per Grand View Research, the market size of crypto wallets is $10.27 billion.
- Experts predict that the value of the crypto wallet market will reach $48.27 billion by 2030.
- In fact, the cryptocurrency wallet industry will have a CAGR of 24.8% in the predicted time frame.
- To sum up, the current crypto market sentiment, Defi trend and metaverse popularity will only promote the growth of blockchain wallets.
- Step into the crypto industry and capitalize on the trillion dollar market with an innovative and secure blockchain wallet. Collaborate with the best blockchain wallet development company today!
How To Keep Your Blockchain Wallet Safe?
Though blockchain wallets are highly secure, you cannot blindly trust them. You should be very cautious of the security of your crypto wallet and your cryptocurrencies.
Here are some ways how you can ensure the safety of your blockchain wallet app.
1. Backup
You should not trust large crypto funds in your hot blockchain wallets. To be on the safer side, you should keep a small number of your cryptocurrencies in your online wallet. While you should store the bigger portion of your crypto funds in a hardware wallet like Ledger Nano.
2. Enhance Your Wallet Security
Firstly, you should always use wallet from a recognized company.
Secondly, you must secure your wallet with a long and complex password. Please note to never put your birthdays or names as passwords.
Thirdly, you should enable authentication features in your wallet. Some of the authentication features in trusted crypto wallets are 2FA, email authentication, sms authentication, multi-sign authentication and more.
3. Upgrade Your Wallet
Wallet companies constantly work to resolve bugs and upgrade new security features and tools.
While your current version of the wallet software can be the best one. You should always update and install the latest versions to enjoy newly added features and security tools.
Features To Include In Your Blockchain Wallet
If you are considering to build a blockchain wallet app, it’s important to include the latest features. It is the high-end features of the crypto wallet app that makes it a success.
Here are some key features of the crypto wallet app that you ask your blockchain wallet development company to integrate.
- Cross platform compatibility
- Multi-currency support
- Instant transactions
- KYC/AML verification
- Automated conversions
- User-friendly Interface
- Buy crypto with credit cards
- NFC support
- QR Code scanner
- Home screen customizations
- 2 Factor Authentication
- Multi-sign support
- Session Logout
- 12 word seed phrase
Blockchain Wallet Fees (Wallet Revenue Models)
As an entrepreneur, you should consider setting up monetization models for your blockchain wallet. The wallet monetization systems help to create multiple revenue streams and generate high ROI.
Here are some crypto wallet revenue models you should consider.
- Transaction fees
- Affiliate fees
- Advertising fees
- Token swapping fees
- Staking fee
- Consultation fee
How To Create A Blockchain Wallet App?
With the right plan in mind, you can build a blockchain wallet app that becomes popular among crypto users.
You will need to hire a blockchain wallet development company. But you should know the components and steps involved in developing a crypto wallet app.
Here is step by step guide to build a blockchain wallet.
Step 1 – Knowledge of Blockchain & Cryptocurrency
Before you start to build a crypto wallet, you should have a sound knowledge of blockchain and cryptocurrencies.
Here are a few things you should learn about blockchain and crypto:
- Blockchain consensus
- Blockchain platforms
- Blockchain protocols
- Cryptocurrency protocols
Step 2 – Market & Competitor Analysis
Before developing your wallet, you should research your market trends and competitors. Further, you should also analyse your customer pain points and preferences. This way you can launch a product that adheres to your customers and caters to their demands.
How can do you so?
Ask yourself these questions.
- What is the current market trend in the crypto wallet industry?
- How is the blockchain wallet industry doing?
- What are your competitors doing?
- What your competitors are offering to their customers?
- What are the pain points of crypto wallet users?
- Who are your target customers?
- What are your target customers looking for in a blockchain wallet app?
- By the time you find out answers to all these questions, you will have an idea of what your crypto wallet app should look like.
Step 3 – Use Open Source Libraries
The best part about cryptocurrency and blockchain wallets is that they are open source. It means that you can view their codes and make one yourself with its help.
BitcoinJ SDK or Coinbase SDK are the two most reputed libraries. You can use these libraries to build blockchain wallet app for IoS and Android devices.
Step 4 – Choose The Right Tech Stack
The key to achieving success with your app lies in selecting the appropriate technology stack.
If your goal is to develop a web app, consider utilizing Node.js or Angular.js, coupled with HTML5 and CSS3, to construct a crypto web application that is scalable.
When it comes to creating a native Android app, you have the option of using either Java or Kotlin, while Swift or Objective-C can be employed for iOS apps.
Step 5 – Incorporate Security protocols
You must keep the security of your crypto wallet app on priority. Users will use your crypto wallet only if it’s safe.
That is why, you should integrate security features like 2FA, biometric authentication, fingerprint, face ID and more. Further, you can also customize features like easy pin login, session log out and multi-sign authentication.
That’s not all! To protect your users from fraud and avoid money laundering, you should implement KCY & AML verification process.
Lastly, you should constantly look to upgrade security and add new features to your wallet app.
Step 6 – Hire The Right Blockchain Wallet App Development Company
Now to start the development process you need to hire a blockchain wallet development company.
A trusted company with expertise and experience in blockchain wallet development will build you a robust wallet app. They have a team of developers, programmers, subject experts, QA engineers and product managers to accelerate your crypto wallet app development.
Hire our blockchain wallet developers today to launch your wallet app within 2 weeks!
Make BlockTech Brew Your Trusted Blockchain Wallet Application Development Company
Join hands with the most trusted blockchain wallet development company BlockTech Brew to venture into the crypto industry. We are here to build you a blockchain wallet app that opens new revenue streams for you and caters to your customers.
Our speciality lies in developing robust, scalable, secure and feature-packed blockchain wallet development solutions.
Schedule a free consultation call with our experts now!
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