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If you are looking to invest in cryptocurrencies but are unaware of what a crypto wallet is, then this article is a must-read for you. When going in for Cryptocurrency Development Services, you will require a crypto wallet to store the private keys.
Read this article to get a complete overview of what is a crypto wallet, types of crypto wallets, its benefits, and the cost required to create a crypto wallet.
What is Blockchain?
Blockchain is the concept that has changed the perception of humans towards investment, banking and record processing, storage & maintenance.
When referring to the blockchain, you must come across various terms such as decentralized, immutable, open-source, public ledger, and many more. However, understanding the concept is much easier than you might presume by looking at these technical terms.
- Made of Blocks: The blockchain technology is named so because it is made up of several interlinked blocks, not the literal blocks. The interlinked blocks make a never-ending chain; each block contains information related to the transaction and participants involved in the transactions.
- Secure: With the introduction of blockchain technology, security issues that used to exist with the traditional methods of storing critical information are rightly addressed. All the new information that is intended to be stored on the network is done in chronological order.
Moreover, once the information is stored, it is impossible to go back or undo it without the consent of all the parties that are involved in the network.
- Proof-of-work: Proof-of-work, a system that involves solving computational-mathematical problems for adding a block. This makes it difficult for the hacker to break-in and manipulate the data.
- Private keys: An important element that appeals to the blockchain users the most is the utilization of private keys that are highly encrypted. The private keys provide a distinctive identity and proof of ownership to the users, and on the other side, the high level of encryption gives it immunity from cyber attackers. However, to secure these private keys, crypto wallets are required.
Scroll down to the next section to get a detailed overview of what a crypto wallet is:
What is Crypto Wallet?
Now when you have acquired a piece of basic knowledge about blockchain technology and its potential in revolutionizing the way when organizations or private owners used to process, store or disperse confidential information, it is time to develop basic know-how about crypto wallets.
Crypto wallets are referred to any hardware device, online platform, or software that are used to store private keys used in the process of exchanging information or making transactions.
There might be chances that you mistake crypto wallets as a medium that holds cryptocurrencies/crypto tokens/ or digital money.
Types of Crypto Wallets
- Hot and Cold wallet
- Software wallet
- Web wallet
- Desktop wallet
- Mobile wallet
- Hardware wallet
- Paper wallet
Hot and Cold wallet: Understanding the concept of hot and cold wallets is quite easy. Hot wallets are referred to as any wallet that is connected to the internet, somehow. These wallets provide remote access and are easy to operate.
On the other hand, cold wallets are those that are completely isolated from the internet. It means, instead of storing keys online, they involve storing keys on physical mediums that make them immune from any type of external intrusion or hacking.
Software wallet: There are many types of Crypto wallets available in the market out of which most of them fall under the category of hot wallets, i.e., use the internet in one way or the other.
Web wallet: Web wallet is one prime example of a software wallet that can be referred to as a hot wallet as well. This is because it does not demand installing any additional software; instead can be accessed conveniently using a web browser.
Mostly, a web wallet can be easily created without any external assistance; however, in some cases, there are parties involved that hold and manage the keys and wallets on your behalf.
Desktop wallet: Desktop wallets, unlike web wallets, require additional software to be downloaded on the desktop computer.
The main reason that contributes to its popularity is the fact that it can be completely controlled without any external interference. Experts suggest you always keep a backup of your wallet.dat file in order to retrieve your funds in case you lose access to your account.
Mobile wallet: Just like desktop wallets, mobile wallets are dedicated software applications; however, they are intended just for mobiles. Mobile wallets can be accessed remotely using your smartphones, making it suitable for daily transactions.
Hardware wallet: Hardware wallets fall in the category of cold wallets as they do not require an internet connection to operate. Instead, they are digital devices that use RNG to create keys, public or private. These types of wallets are high on security; however, they demand special attention at the time of implementation of the firmware.
Paper wallet: A paper wallet is the most basic form of crypto wallet, i.e., a piece of paper with a QR code printed on it. This QR code can then be scanned to facilitate crypto transactions.
Using a paper wallet comes with its own set of limitations. A major of it is that a paper wallet can not be used to make partial payments; instead transfers the entire balance. This is the reason why it is not considered a feasible crypto wallet when compared with the rest that is mentioned above.
How Blockchain Secures your Crypto Wallets?
No doubt that the number of varied elements makes the blockchain network secure enough; it is important for the users to adopt the best-practices to add an extra layer of security and protect their crypto wallets from getting into the wrong hands.
Encryption: Just like the blockchain network involves a high level of encryption, it is suggested for the users to encrypt their wallets as well. It provides security against cyber attackers.
Multi-signature: There are platforms that demand multiple signatures (approvals) before initiating a crypto transaction. Including this in your blockchain crypto wallets will help you to keep your keys and funds protected.
Benefits of Crypto Wallet Applications
Reliable solutions: A major reason why the Blockchain App Development Company emphasizes crypto wallet development is that they are considered as a trusted medium for the transmission of cryptocurrencies.
Saves conversion cost: Unlike the traditional currencies, transacting in cryptocurrencies does not demand any conversion even while making international payments. You can instantly facilitate transactions directly from the crypto wallets for a hassle-free exchange of cryptocurrencies.
Convenient crypto-exchange: Crypto wallets deliver a high level of customization and can be an effective medium to exchange a wide variety of cryptocurrencies.
The Cost of Developing a Blockchain-Based Crypto Wallet Application
There are many factors that play a dominant role while calculating the cost estimate of crypto wallet applications during cryptocurrency development services.
Let us have a look at them:
- Back-end development
- Quality Analysis
Back-end development: Back-end development plays a crucial role in the functioning of cryptocurrency wallet applications. It is the server-side maintenance of the cryptocurrency wallet application.
It would take somewhere around $10000 for the Blockchain App Development Company to deploy back-end developers for your project.
Platforms: The number of platforms that you intend to create the wallets will also influence the cost of wallet app development.
Creating a wallet app for Android will cost in-between $30000 to $35000; for iOS, it will be around $25000 to $30000; for web and desktop, it will be near to $7000.
Design: The app design plays an important role in determining the success of your application. Make sure you invest in an app that boasts an attractive design, yet the highest level of simplicity.
It means the app should appeal to the users and should be easy to use. An attractive and interactive design would cost you around $7000.
Quality Assurance: It is one of the most critical aspects of app development. QA is responsible for adding value to your crypto wallet development and ensuring that the demands of the consumers are met. The process of QA will cost you nearly $5000.
Moreover, the cost to create Crypto Wallet Apps also depends on the software development company you opt for your project development along with various other factors.
Small Company Cost for Crypto Wallet App Development: $50 / Hour
Get a Quote for Your Next Crypto Wallet Project
Intermediate Company Cost for Crypto Wallet App Development: $100 – $150 / Hour
Enterprise-level Company Cost for Crypto Wallet App Development: $300 / Hour
The figures that are mentioned above are just a rough estimate; however, to get a precise cost of Crypto Wallet App development.
Hire Crypto Wallet App Developer to get a cost estimate optimized as per your project requirements.
Team require to develop a Crypto Wallet App
It demands a team of experts to turn your vision of owning a robust Crypto Wallet App into reality. The team members that are required in the process are mentioned in chronological order:
- Project Manager
- Android and iOS Developers
- UI/UX Designers
- Back-end Developers
- Front-end Developers
Project Manager- The one who leads the team deployed on your project.
Android and iOS Developers- Responsible for creating the app for the respective platforms.
UI/UX Designers- They add visual appeal and functionality to your app’s interface.
Back-end Developers- They are in charge of the server-side logic and linking the work of the front-end developers.
Front-end Developers- They add visual elements to the app that the users interact with in the crypto wallet app.
Tester- Tester’s role is to check the software development and address the probable issues (in case if any).
Must-Have Features in a Crypto Wallet App
- Push Notifications
- Two-Factor Authentication
- Session Time-Out
Push Notifications: Push notification plays an important role in keeping the user informed about the latest fluctuations in the value of cryptocurrency, transaction success and failure, transaction requests, and to receive real-time daily activity updates.
Two-Factor Authentication: Two-factor authentication will add an extra layer of security to your crypto wallet app. It can be enriched by asking for username, password, and OTP in the process.
Session Time-Out: Integrating an auto-logout feature will help you to provide extra security to your app other than the two-factor authentication as stated above.
Authorization: The user authorization page will help the users to keep their keys and funds secure from any unauthorized access.
Auto-Cancellation: You can also consider integrating this feature in your Crypto Wallet app as it can be helpful in case when multiple payments are initiated (accidentally) due to server-side issues.
Now when you know the importance of crypto wallets, the next step is to Hire Crypto Wallet App Developer.
BR Softech Pvt. Ltd. is a class-leading Crypto Wallet Development Company that can provide you optimized blockchain-based software solutions at a cost effective price.
BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2010 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, mobile/ software development and other digital marketing services intending to deliver outstanding digital outcomes.