The recent event of bitcoin halving has attracted global attention. People from all domains are getting more and more involved in crypto products. Recently, Elon Musk, CEO of Tesla, showed his interest in cryptocurrency, creating a solid impression of the crypto industry.
The need to quote this incident was to give you an impression of how the crypto ecosystem is evolving. Entrepreneurs are focusing on developing new crypto coins and tokens to capture a larger share of the crypto market.
Regardless of the type of crypto platform – be it a crypto exchange, crypto payment remittance platform, crypto point of sale system – a crypto wallet is essential to store and transfer crypto assets. Therefore, there is an utmost need for a secure and feature-rich cryptocurrency wallet that supports multiple cryptocurrencies.
What are cryptocurrency wallets?
In simpler terms, a cryptocurrency wallet is equivalent to a conventional leather wallet that stores fiat money. Cryptocurrency wallets are system software that store public and private keys to facilitate an easy sending and receiving of crypto assets. It also serves as a personal ledger to crypto wallet users.
Cryptocurrency wallets are of five types, which are mobile wallets, web wallets, software wallets, hardware wallets, and paper wallets. All the aforementioned cryptocurrency wallets are equally popular and serve different use-cases for different classes of crypto users. In this blog, we will discuss how does crypto wallets function and how to create a crypto wallet.
Working of cryptocurrency wallets
Cryptocurrency wallets are backed by blockchain technology. A crypto wallet has two keys – a public key and a private key. The public key is your wallet address that is shared with other individuals for the transfer of funds whereas a private key is used to unlock crypto wallet and access funds stored in the wallet. The private key should be kept safe and should not be shared with anyone. No two individuals can ever have the same wallet address, thus eliminating the chance of transfer of funds to another person’s crypto wallet.
How secure is a cryptocurrency wallet?
The security of a cryptocurrency wallet wholly depends on the security features that are integrated into the wallet. From the users’ point of view, it is advisable not to store all of their crypto assets in a single wallet. And from the wallet owners’ perspective, it is recommended that they partner with the best cryptocurrency wallet development company to develop their crypto wallet.
Security features that should be integrated into a crypto wallet include:
12-word mnemonic passphrase
Optimal session logout
Creating the best cryptocurrency wallet
Cryptocurrencies are pseudonymous in nature and the identity of the crypto user remains unidentified to a large extent. As crypto wallets make use of public keys to transfer the funds, the tracking of the identity of the user is very minimal. While developing a crypto wallet, you should be clear about the motive of designing a crypto wallet.
The following can be the traits of a crypto wallet:
Cost- Some crypto wallets charge nominal fees and some claim large fees. It is totally dependent on the functions that a crypto wallet is providing to the users.
Security- The word security builds users’ trust into a crypto wallet. It should be the highest priority while developing a crypto wallet.
Mobility- Hot crypto wallets are very mobile in nature. Crypto funds can be easily transferred from one crypto wallet to another without much outside interference.
Convenience- The framework of a crypto wallet should be very convenient to use. The interface should be self-explanatory to provide a smooth experience to users.
The cryptocurrency market is very lucrative and if you are looking forward to creating your own crypto wallet, you must associate with a reliable wallet development company.
Antier Solutions is a leading cryptocurrency wallet development company offering blockchain/crypto development solutions to clients across the globe. We deliver both white label crypto wallet solutions and the customized wallet from scratch to help you fulfil your business goals.
Schedule a free demo of our white label cryptocurrency wallet or connect with our subject matter experts to share your business needs.