With everything moving digital, investment strategies are too. After gold, real estate, stocks, and bonds, now people are investing in cryptocurrency. You can get an idea about the popularity of the cryptocurrency market with the fact that the global cryptocurrency market was valued at USD 1.3 billion in 2021. The market is expected to show a CAGR of more than 12%.
|Years Considered||Historical data – 2018-2021, Base Year – 2021, Forecast – 2022 – 2028|
|Facts Covered||Revenue in USD Billion|
|Market Coverage||U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia|
|Product Service/Segmentation||By Category, By Elements, By Methods, By End-User, By Region|
|Key Players||Microsoft Corporation, BitFury Group Limited, Advanced Micro Devices, Ripple Labs Inc., Intel Corporation, NVIDIA Corporation, Coinbase Ltd., AlphaPoint Corporation, Xilinx Inc., BitGo, and other prominent players.|
What Is Cryptocurrency?
Cryptocurrency is a digital currency that works on blockchain technology. The price of cryptocurrencies varies as per the demand and supply, and if the demand exceeds the supply, the price will increase and vice-versa. Some popular cryptocurrencies are Bitcoin, Ethereum, Ripple, Monero, etc. Many crypto exchange platforms are available in the market where you can trade cryptocurrencies.
Most Popular Crypto Exchange Platforms
What Is a Cryptocurrency Wallet, and Why Do You Need It?
A cryptocurrency wallet is a storage unit where you can store all the cryptocurrencies you have bought. It can be in the form of hardware and software, depending on the type of cryptocurrency wallet you are using.
Cryptocurrencies are based on blockchain technology and don’t have any physical evidence. So, you can not store them in your locker, pocket, or traditional wallet. Your cryptocurrency wallet is an address where you receive your cryptocurrencies and store them securely.
Working Principle of A Cryptocurrency Wallet
The working principle of cryptocurrency wallets is pretty simple. Whenever you register yourself with a cryptocurrency wallet, it generates two keys. The first one is public, and another one is the private key. The public key works as the address for your wallet, and you can share it with anyone to receive the cryptocurrencies. Sharing the public key has no risk of getting robbed or hacked.
The private key is like the key to your wallet. It keeps all your holdings safe and secure. It should not be shared or communicated to anyone in any circumstances. Anyone having this private key can easily steal your crypto without your permission.
What Does Blockchain Technology Refer To?
Blockchain is a distributed database, also known as a ledger shared among the nodes of a computer network. Blockchain is made up of different blocks attached in a sequence. Every block carries some sort of information depending on its respective usability.
Blockchain technology has come into the limelight with its increasing role in the cryptocurrency system. Blockchain technology is used in the decentralized record of cryptocurrencies like Bitcoin. A slight alteration in one block will require a massive change in every other block of the chain. So, it is nearly impossible to make changes in the blockchain.
Types of Cryptocurrency Wallet
Just like the cash and card wallets, you have a number of cryptocurrency wallets to choose from. However, here you won’t go for the appearance but the functionality of the wallet. Cryptocurrency wallets are divided into two main categories: hot and cold wallets.
Hot Cryptocurrency Wallet
Hot wallets are cryptocurrency wallets that connect with the internet to perform transactions. Due to connectivity with the internet, a high risk of hacking and security is experienced. But, hot wallets are user-friendly and provide a smooth user experience. Hot wallets are available in further three categories:
1. Desktop Wallet
Desktop wallets are the applications that you can download on your desktop and laptop. The desktop wallet generates the data file that holds the keys for the users. Moreover, the users are allowed to set the password to access the keys stored in the wallet. Desktop wallets have the least risk of physical damage or malware infections.
2. Web Wallets
If you don’t wish to install anything and manage the cryptocurrency all online, you can go for the web wallet. The web wallets are accessed from web browsers. You can access your cryptocurrency at any location or time with your password. However, it would be best if you remembered that using the web wallet means giving ownership of your keys to the website.
3. Mobile Wallet
Similar to a desktop wallet, you must download the mobile wallet on your smartphone. The biggest flex you will get with the mobile wallet is that you can trade the crypto from the same platform. So, it makes the storage and transactions more friendly to you.
Cold Cryptocurrency Wallet
On the other hand, cold wallets operate without support and connectivity to the internet. So, these are much safer than hot wallets. But, the wallets are not connected to the internet, and you will have to connect them to your system to make crypto transactions. So, these offer better security but less accessibility. Cold wallets are available in the following categories:
1. Hardware Wallets
Cryptocurrency doesn’t have any physical entity, but hardware wallets have. It looks like a pen drive that stores your key away from internet connectivity. There is no chance of hacking or malware attack as it can never be connected to the internet. You can connect the hardware wallet to your computer with a USB drive.
2. Paper wallets
If you are confident that you can store and manage a piece of paper not getting stolen or damaged, paper wallets can be one of the options for you. However, paper wallets are nothing but a piece of paper with a key. If your paper wallet is stolen or damaged, you can assume that you have lost your investment for life.
Custodial and Non-Custodial Cryptocurrency Wallets
1. Custodial Cryptocurrency Wallets
When a third party holds your cryptocurrencies’ private key, it is a custodial cryptocurrency wallet. The third-party holds complete access to your cryptocurrencies in a custodial cryptocurrency wallet.
Free Wallet, BitMex, Bitgo, Binance, etc., are some of the leading custodial cryptocurrency wallets.
2. Non-Custodial Cryptocurrency Wallets
On the other hand, non-custodial cryptocurrency wallets provide complete control of tokens to users. There is no engagement of third parties in this type of cryptocurrency wallet.
Electrum, Ledger Nano X, Trezor One, Exodus, Zengo, etc., are some popular non-custodial wallets.
What Are Multi-Cryptocurrency Wallets
Most cryptocurrency wallets are meant for storing specific crypto and don’t work with multiple cryptocurrencies. Litecoin Core is the desktop app wallet that only holds Litecoin coins and tokens.
So, the cryptocurrency wallets that can store multiple cryptos simultaneously are known as multi-cryptocurrency wallets. For example, most hardware wallets can store multiple cryptocurrencies in them. At the same time, the crypto stored on exchange platforms can also be counted in multi-cryptocurrency wallets as you can store numerous cryptocurrencies.
Multi-crypto wallets are available in both hardware as well as software form.
1. Hardware Multi-Crypto Wallet
A hardware multi-crypto wallet comes in the form of a pen drive or card-readers that can store your multiple cryptocurrencies. The range of multiple cryptocurrencies might differ from wallet to wallet. One might carry 3 different cryptocurrencies while the other can hold 5.
Ledger Nano S, SafePal S1, SecuX V20 Most Secure, etc., are some of the best multi-crypto hardware wallets that can be considered.
2. Software Multi-Crypto Wallet
For easy access, software multi-crypto wallets have your back if you prefer to use a software wallet. Software multi-crypto wallets can be in the form of web wallets and application wallets.
Multi Crypto Blockchain Wallet is a good example of a Software multi-crypto wallet. You can store more than 150 coins in this application. This software wallet is available for Android as well as iOS users.
Key Features of A Crypto Wallet
1. User Authorization
Security is the first concern of users while using a fintech app. Moreover, the growth and craze of cryptocurrency have brought the threat of cyber attacks and security risks. So, user authorization is one of the must-have features for a crypto wallet. Having two-factor or multi-factor authentication can be a significant element in attracting users.
2. QR Code Scanner
Convenience always attracts customers. Having a QR code scanner to get the wallet address and make the transaction can transfer the app’s usability to a significant level.
3. Multiple Cryptocurrency Wallet
As we observed earlier, most crypto wallets are meant for a single or specific cryptocurrency. The wallet that can manage multiple cryptocurrencies simultaneously can be a significant differentiating factor.
4. Efficient Management of Familiar Addresses
It will be a plus point if the wallet can manage all the frequently used addresses, and it will elevate the smoothness, speed, and convenience of transactions.
5. Sending and Receiving Crypto
The modern software wallets offer to send and receive the crypto instantly from any address. Equipping this feature in your app can enhance its usability.
6. Payment Gateway
The price of one bitcoin might be thousands of dollars, but one can not trade it for shopping at a regular supermarket. So, everyone expects monetary benefits from their investment. Integrating a payment gateway will make it easier for the users to exchange their cryptocurrency profit with real-time money.
7. Push Notification
Push notification enhances the user’s experience. The cryptocurrency wallet should have the feature to notify the owners about the rise or drop in the price of their cryptocurrencies.
8. Customer support
You have to be available whenever your customers need you. Ensure the use of various tools such as chatbots, customer care executives, FAQs, etc., to provide efficient and complete customer support.
9. Automated logout
Automated logout is another feature to enhance the security of the crypto wallet. The app should log out of the user account automatically after a period of inactivity or closing the app. It will ensure that a third person is not misusing the account or application.
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Are Cryptocurrency Wallets Secure?
The security of cryptocurrency wallets varies on several factors. The foremost determining factor of wallet security is the type of wallet you are using. The fact can not be denied that web servers are constantly exposed to cyber security risks such as breaching and hacking. Talking about offline wallets, they can not be hacked or breached as offline wallets are far from the connectivity of the internet. So, there are no chances of data breaching or hacking.
Irrespective of the wallet you are using, losing/sharing/breaching your key will directly cause the loss of your investment.
How to Develop a Cryptocurrency Wallet App?
Developing a fintech app is complicated as compared to other regular apps. Users and app developers might not afford any kind of bug or error in the application as it might cause a significant financial loss to both parties. Unlike the majority of app development, here, you first need a complete understanding of blockchain, cryptos, required APIs, the right tech stack, security system, etc.
However, we have listed some of the steps and considerations that you can entertain while developing a cryptocurrency wallet:
1. Get Familiar with The Concept of Blockchain and Cryptos
The whole game of crypto, selling, buying, and storing is based on blockchain technology. So, before initiating the process, you must be familiar with Blockchain. Cryptocurrencies work only because there is blockchain technology supporting it.
2. Use “standard Cryptocurrency Open-Source Libraries.”
Most cryptocurrencies are open source, and you can use the available free libraries and tools. BitcoinJ SDK and Coinbase SDK are good examples of the same.
3. Use APIs
To install the excellent feature, you have to install an API. While developing a cryptocurrency wallet, you need to use a distributed ledger API to allow the synchronization of the crypto wallet to the blockchain ecosystem. Coinbase, Factom, or Bitcore can be your choice for the APIs.
4. Go Cloud
Selecting the right cloud platform is crucial while developing the cryptocurrency wallet app. BaaS (Blockchain as a Service) providers are the best cloud service, in this case, to integrate into the app. A number of companies offer BaaS products, such as Amazon, Microsoft, and Azure.
5. Ensure the Right Technology Stack
Tech Stack is the framework that determines the functionality of your app. Make sure you use the right tech stack to provide the best experience to the users.
- Node.js or Angular.js with HTML5 and CSS3 can be the right choice when developing a web app.
- Similarly, you can use Java or Kotlin to build the native Android app.
- Swift or Objective-C can be used to develop iOS apps.
6. Equip Security
You never know what amount of investment the user will store in a crypto wallet. So, security will be their foremost concern when choosing the wallet. You need to make sure that your app is equipped with top-notch security. You must add extra layers of security to your app, such as 2FA, fingerprints, face lock, etc.
7. Focus on Competitive Advantages
With the increasing popularity of cryptocurrencies, many crypto wallets are available on the app store and play store. You will have to secure competitive advantages so that your app can stand out from the crowd. For the same, you should keep an eye on your competitors regarding their features, the customers they are targeting, and the technology they are incorporating. Never let your app lag behind your competitors.
Why Choose Emizentech?
The above-defined process might seem complicated to you if you don’t belong to a software development background. However, developing a cryptocurrency wallet can easily open the doors of passive income for you. Your lack of familiarity with software development should not hinder your side hustle idea.
So, with its team of experienced and visionary developers, Emizentech provides you with the best web and app development services in the market. With the experience of around a decade, we will guide you through the complete process of app development. We have worked on several crypto and blockchain projects and delivered our clients the best outcomes. So, we don’t only help you develop the app, but we also provide the right guidance and suggestions to you.
The question is obvious. After all, there are thousands of companies and developers willing to take your project. Yes, there might be other developers or companies offering to develop the app, but what about the expertise, experience, and knowledge. We offer this to you rather than asking for the project. You should choose Emizentech because we have:
1. Proficient Team
The quality of your project will depend more on the team than the firm. So, we have a proficient team working on your project. The Crypto and blockchain specialist team are going to handle your complete project. Nothing else but their expertise and experience is going to make a difference in project delivery.
2. In-Depth Knowledge
You might miss something but we can’t. Fundamental features will be our suggestions in case you miss one. We know that Blocking the duplicate payment, Multi-Factor Authentication, level-up security system, automated logout, and much more features are basic and should not be missed.
3. Varieties for Your Choice
We have the developers to develop both the custodial and non-custodial crypto wallets. Tell us your preference, and we will deliver the product to you. It is that simple with Emizentech.
While working in the industry for around a decade, Emizentech has handled many such projects and thus carries the solutions to every problem. It is one of the differentiating factors because experience can only be gained and not purchased.
Avail of the free consultation session with our project manager and make the right decision.
Having gone through the above article, you must have understood that Crypto is becoming the new face of investment. However, crypto investments are of no means as long as they are not stored and managed on a safe platform. Multi-crypto wallet development is gaining a strong pace with many roles in blockchain and crypto transactions.
If you are already engaged in Fintech business, developing the blockchain mobile app can be a turning point. By instilling the right features and technology, your multi-crypto wallet can attract a strong user base and generate a handsome passive income for you. Get in contact with our app development team and take the first step toward the same. After all, the first step is always the hardest one.
Frequently Asked Questions (FAQs) On Multi Cryptocurrency Wallet
Yes, no matter which type of wallet you prefer, it is a basic need for any crypto transaction. Using a crypto exchange platform is also a type of crypto wallet. However, depending on your security concerns, you can opt for other hardware and software solutions.
There are a number of software as well as hardware wallets that support hundreds of different crypto coins at the same time. For example, Coinbase Wallet can store more than 100 cryptos simultaneously.
The price of crypto varies with the changes in the crypto market. If the price of your coin is increasing in the crypto market, the value of your investment will also increase irrespective of the wallet you have stored the crypto in.
As the name suggests, Multi-crypto wallets help store different types of cryptocurrencies in one place. Depending on the type of wallet you are utilizing, some software wallets even allow the trading of wallets.
No, crypto wallets are not free to use and charge a one-time, periodic, or transaction fee. The reason is that crypto wallets can not earn via advertising or selling users’ data by anonymizing it. So, crypto wallets charge a direct fee from their users.