According to Suffescom Solutions Inc., the number of cryptocurrencies globally increased by almost 350% between December 2019 and February 2022, from 2,388 to 10,656. Users require a crypto wallet to store and protect their digital coins from illegal access, allowing them to manage their cryptocurrencies securely.
While the concept of a cryptocurrency wallet – an account for making and receiving payments – is straightforward, the technology behind them is more sophisticated and presents hurdles to developers. Wallets for cryptocurrencies must efficiently and effectively manage digital keys and cryptocurrency transactions on the blockchain network while delivering a seamless user experience.
What are the different types of crypto wallets?
Wallets for cryptocurrencies can be categorized into various categories. This article does not cover hardware wallets — comparable to a USB stick that holds the token and private key — and paper wallets — a document containing copies of the wallet’s public and private keys — since they lack a digital user interface. Instead, we will explore the many forms of software wallets, including internet wallets, PC/desktop wallets, and mobile wallets.
Digital wallet features
Consequently, whatever digital characteristics are required for best-practice digital wallet app development? Here is a summary:
Usability
First and foremost, cryptocurrency wallets must offer an intuitive user experience. The increasing popularity of fintech and challenger banks has led to a greater emphasis on UX in the financial sector, and customer expectations for financial apps are rising. The following usability aspects are crucial for developing crypto wallets if the cryptocurrency industry remains competitive.
Robust User Interface
When constructing a high-tech application like a cryptocurrency wallet, it is easy for developers to forget that they are ultimately designing an application for non-technical end users. In addition to building the underlying technology, it is essential to focus on app design, navigation, and user guide. Developers should always keep in mind that the market for crypto wallets is highly competitive; if an app does not function flawlessly, customers will download another.
Push notifications
The cryptocurrency market is volatile,, and coin prices can fluctuate. Users monitor exchange rates more intently than traditional banking customers. Without full-time traders, users do not have the time or energy to track expenses 24/7. To prevent users from losing track of their coins and keep them engaged, crypto wallets should send updates via push notifications. Let users know when a certain price target is reached of r they have received a payment.
Backups
To protect user funds against computer or software malfunctions, developers should enable users to back up their wallets. While users would benefit most from creating a backup on their laptop storage or an SD card, not all will think to do this. Let customers know you care about their funds by proactively integrating secure cloud storage apps like Dropbox or Google Drive into the wallet.
Compatibility with multiple operating systems
To appeal to the largest possible number of potential users, developers must design for all operating systems. They should opt for cross-platform mobile app development, as this simplifies the development process and allows for greater flexibility. With it, developers can also reap the benefits of faster development times, lower costs, more rapid deployment, and continuous management capabilities.
Security
Security is an essential consideration for crypto wallet development. From the user’s perspective, nothing else matters without the ability to store cryptocurrencies securely. To win user confidence, crypto wallets should offer the same security features that users expect from a traditional banking app.
Two-Factor Authentication
A crypto wallet with two-factor authentication login protects user funds against potential hacks. Besides asking users to confirm their identity when they try to log in, developers should also ask users to confirm login attempts from unknown IP addresses.
Automated logout
Automated logout is essential for a successful crypto wallet. To minimize the risk of others being able to access a user’s account, wallets should automatically log the user out after a period of inactivity or after they close the app. This is something that traditional banking customers are used to as an industry standard.
Local storage of the private key
Local storage of the private key is another indispensable feature of crypto wallets. Rather than storing private keys on the server, where they can be easily stolen, crypto wallets should automatically store them locally on the user’s end device.
Next steps
The importance of cryptocurrencies will continue to increase in the coming years — and with it, the need for crypto wallets. The NFT boom of recent months will accelerate this shift.
As more developers enter the market with new apps, digital quality will increasingly become the deciding factor influencing wallet downloads. If a crypto wallet is to edge ahead of the competition, implementing the features mentioned in this article should be the bare minimum for blockchain wallet development services.
To create truly successful crypto wallets, developers must extensively test for functionality, UX, localization, and accessibility. After all, great features mean nothing if they don’t work properly.