How to Build a Secure Crypto Wallet for Your Online Payments:
Crypto wallet is essential to make your online payments fast and reliable.
Things have changed since the revolution of technology. Right from the introduction of the digital payments, it has moved forward with the transition of introducing the digital wallets replacing the physical wallets. With the crypto wallets gaining traction among the investors and traders, a go-getter entrepreneur will take action by starting a secured crypto wallet for his customers. According to the report released by the 3W market trends, the Crypto wallet industry is going to reach one million US dollars by the end of 2025.
In this blog, we are going to discuss building a secure crypto wallet for your online payments:
What is a crypto wallet?
Crypto wallets act like a normal wallet. In a normal wallet, you put your money into it and spend it out from it. The same thing you are going to do with the crypto wallet. You can put your crypto holdings into your wallet and spend it from them whenever you need it. The only difference is the physical presence, Crypto wallet is a digital software which allows the user to store, spend, and loan bitcoins and other altcoins using a certain address. Initially, there are wallets only those which support two coins — bitcoin and Ethereum. Later, after the emergence of multiple coins and their lead in the crypto market, some wallets come with multiple cryptocurrency holding wallets.
The wallet address of one wallet differs from others. Also, there are some decentralized wallets which store each crypto coin in a different address. Speaking about the wallets, there are different types of wallets based on the different aspects of usage. Also, the software varies from one type to another based on preferences.
- Desktop wallet application — This has a high-end security system in which the wallet can be accessed only from the computer you have installed in it.
- Online crypto wallet — This is a wallet in which you can access through any devices. It is because the wallet is connected to a secure cloud. But beware of the hackers that can get through your crypto account if the wallet is not securely encrypted.
- Mobile wallets — This is a wallet service that runs on the mobile application, where there are chances of getting compromised if the app is not security strengthened.
- Hardware wallets — hardware wallets are considered as one of the secure wallet services. The important aspect of hardware wallets is their offline storage. So, you can store your crypto holding data on a USB or a hard disk.
- Paper wallets — This is nothing but a printout of the public and private keys of your wallet and your fund information. This is one of the riskiest wallet options. Because, if you lose the paper, then your wallet is lost and so your funds.
Things to consider before starting your crypto wallet:
If you are planning to construct your cryptocurrency wallet, there are certain things that you need to consider:
- The wallet should generate the required cryptocurrency address for transactions. If you are holding multiple cryptocurrencies, the wallet should generate addresses for specific cryptocurrencies accordingly.
- The wallet software should be crafted in a way that it should recognize other wallet addresses and send cryptocurrencies to the prescribed address accordingly.
- The wallet should be programmed to handle the impact of the cryptocurrency database and its reorganization principles from time to time.
- The wallet should be capable of conducting multiple transactions efficiently. All the transactions should be broadcasted to the cryptocurrency blockchain and it should be stored in a ledger under a private key. So the user whenever, he wants to take a look at his transaction should enter the key and access the information.
If you want to create a wallet with the above considerations you need to hire a well-experienced wallet application developers. Cryptocurrency wallets need proper construction. Either you can choose clone wallet applications and develop according to your business need or construct a Whitelabel cryptocurrency wallet for your crypto-business.
Features of cryptocurrency wallet:
There are certain features that you can consider while creating a cryptocurrency wallet:
- Registration — Cryptocurrency wallet registration is easy and comfortable. All you need is to sign up with your mail id and verify your KYC details, That is all
- Stunning dashboard — The dashboard is a preamble to the entire bitcoin and cryptocurrency wallet. All you need to operate is reflected in your dashboard.
- QR code verification — Tired of typing or copy-pasting the cryptocurrency wallet address to send payments, right? No worries, the emergence of QR codes had made the entire process easier and effective. With a single glance of your QR code, you can complete the transactions within a minute.
- The app has the ability for the user to allow him to generate codes and pin codes for his transaction.
- The crypto wallet provides Multicurrency exchange support. Because, as the cryptocurrencies are increasing day by day, the user can choose any coins to store in his wallet.
- The wallet software provides push notification features. If an offer or any active trade is going on, or if you want to use the offer provided by the wallet provider, then you will receive push notifications about it.
- Assured security — Blockchain stands as a frontline of defense. Also, some additional security features will be provided by the wallet providers based on business needs.
How to protect your cryptocurrency wallet?
A cryptocurrency wallet comes with protection and security features. But in this cyber world, normal protection will not work. Let us discuss how to protect your cryptocurrency wallet.
- Encryption: The wallet should be encrypted with a strong password. Strong password encryption will protect your device from being getting hacked or cracked in.
- Backup storage — create as many as backups as possible to protect your cryptocurrency exchange software secure and protected.
- Multi-Signature wallet — Adding a multi-signature security feature is one of the most effective ways to create a cryptocurrency wallet. Firstly the users who want to transact will sign one public address and need to sign another time for a private address to transact. The number of the required signs will be assigned in the address before initiating the transaction.
How to build a secure wallet using technology tools?
Bitcoin is an open-source code software and it can get accessed by anyone. You can build your crypto wallet using source code libraries that are available in the market. Some of the most prominent ones are coinbase J SDK, Bitcoin J SDK, etc. If your wallet is going to perform simple payment options, you need not do complex payment integrations.
You have decided to create your cryptocurrency wallet. But you should know which type you prefer. It depends upon your budget, legality, and business requirements. You have two options — either you can create a crypto wallet clones similar to famous crypto wallets or you can craft your wallet from scratch through Whitelabel cryptocurrency wallet software.
Cryptocurrency wallets are more in demand compared to physical wallets. As people rush towards digitalization and privacy, cryptocurrency wallets are becoming the future. So, start constructing your cryptocurrency wallet by assisting with the best cryptocurrency wallet development and integration company and earn considerable profits.