A Cryptocurrency wallet is a safe avenue where users can store their digital assets and funds. It can be used to send and receive money easily and help to possess full control over crypto holdings. A Cryptocurrency wallet app can be installed on a smartphone to send and receive funds. By launching a robust crypto wallet, you can make substantial income in the long run, along with gaining a massive user base.
What is Cryptocurrency Wallet?
It is a piece of software or a program that can be easily downloaded on a compatible device. It will keep track of your available balance, the different expenses, and lets users hold more than 100 digital currencies at once. A Cryptocurrency wallet can be downloaded and installed on a smartphone. It can be used for making daily purchases, as a long term investment, or just utilize its cold storage facilities.
The Features of a Cryptocurrency Wallet
- Quick conversion from fiat to cryptocurrency and vice-versa.
- Automatic session logout post the execution of a transaction to prevent any unauthorized access.
- Unrestricted access to transaction history for the users to ascertain their expenditure pattern.
- An exclusive QR code scanner facility to make payments quickly and securely.
- Real-time push notifications to view the activity 24×7.
- Auto denial of duplicate payments to prevent chargeback frauds.
- Protection from inflation and economic downturn.
- Not influenced by any government regulations.
- Affordable rates for processing transactions as there is no interference of third parties.
- Real-time pricing information will be provided about different kinds of cryptocurrencies.
- The list of frequently used wallet addresses will be displayed in a separate list to process transactions faster.
- Security measures like password and PIN protection will be available.
- A real-time tracking facility for payments.
- Multiple modes of executing a transaction via NFC, QR codes, or a Bitcoin URL.
How does a Cryptocurrency Wallet work?
- It stores all the transaction records in the immutable blockchain network.
- It operates in the form of a software program containing your private and public keys.
- When a person sends his cryptos to another user’s wallet, he is transferring the ownership of the digital coins or tokens to the wallet address of the recipient.
- The private key stored in your wallet must match the public address the currency is assigned to for unlocking the funds and utilizing them for various purposes.
- The public key will be used to receive the funds and can be searched in the distributed ledger.
- The private key is used to sign the transactions and prove that the user owns the related public key.
What are the Types of Cryptocurrency Wallets?
- Desktop wallets can be downloaded and used on a PC or laptop. They are accessible only from the single computer on which it was originally installed. They are mostly secure except in cases of a virus or a hacking attack on your computer. This would lead to the loss of all of your funds. Popular examples of a desktop wallet would be Armory and Bitcoin Knots.
- Virtual wallet for cryptocurrency is also called an online wallet. They operate on the cloud and can be accessed from any location using any device without any restrictions. They are very convenient to use as private keys can be stored online. But, sometimes they are vulnerable to hacking attacks and chances of theft as they are indirectly controlled by a third party.
- Mobile wallets can be utilized via an app on your smartphone. They are accepted by retail stores and supermarkets for processing various payments. They usually have limited cold storage facilities than desktop wallets. Some of the well-known mobile wallets are Green Address, Bither, and BitGo.
- Hardware wallets are a bit different from software wallets like desktop, mobile, and online wallets as they do not store the user’s private keys online but store them on a hardware device like a USB. They have robust security measures as they are stored online and transactions can also be executed online. They can support different digital currencies and are seamlessly compatible with several web interfaces. Some famous hardware wallets are Trezor, Ledger Nano S, and KeepKey.
- Paper wallets are easy to use and are highly secure. The software will automatically generate your private keys and public keys which can be printed. A user can easily transfer funds from their software wallet to the public address of their paper wallet. You can enter your private keys or scan the QR code on the paper wallet for transferring funds from it to your software wallet. A Bitcoin paper wallet can be printed at bitaddress.org.
How do you Secure Assets in a Cryptocurrency Wallet?
- Notify your users to keep their passwords and private keys securely. If unauthorized access has been granted funds will be swindled in no time without any chance of recovery. Hence, tell them to ensure that only they have access to their respective password and private keys.
- Enable two-factor authentication as it will act as an extra layer of security. Even if someone happens to get access to the password and private key, it will save users from the potential misuse of their wallet as the secret code containing a few digits sent to them is needed to log in to the cryptocurrency wallet.
- Ensure that you do not deposit all your funds in one wallet. Distribute all your investments in multiple wallets simultaneously to get the benefits of diversification and division of risk.
- Make sure that you update the wallet’s software regularly. This will add the latest security enhancements.
- Some wallets like Armory are multi-signature enabled and have sufficient cold storage facilities. All the private key data of the users are stored in secure offline computers. They follow GPU-resistant wallet encryption.
Quick Steps for Creating a Cryptocurrency Wallet
- Configure a wallet API for managing the permissions. The code can be obtained from platforms like GitHub.
- Set a password for the wallet and do not share it with anyone.
- Set up a private key so that you alone can access the funds.
- Try to make outgoing transactions.
- Generate a new wallet address.
- Test the user interface thoroughly.
- Store some funds in it.
How do you Create a Cryptocurrency Wallet App on your own?
- Readymade templates can be used easily.
- You can make use of standard open-source libraries like Chain-Java.
- Install an API from a website.
- Provide a wallet name and set up permissions for transactions.
- You can choose third-party programs and integrate them with your Cryptocurrency wallet.
- Decide on the features if you are planning to develop it from scratch.
- Write the code and integrate it with your database.
- Design a user-friendly interface.
- Make sure extensive testing is done before the official launch of your wallet.
In case the above steps are confusing to you, get in touch with an experienced cryptocurrency developer who will streamline the process of creating a Cryptocurrency wallet app easily.
The Future Expectations for a Cryptocurrency Wallet
This is the right time for businesses to launch a cryptocurrency e-wallet from Blockchain App Factory as digitization is spreading its wings far and wide. It will assist in keeping track of all your digital assets on a real-time basis and manage your portfolio of investments efficiently. It will help to increase your customer base and give your business firm a lot of freedom and flexibility along with a greater inflow of revenue.