How to Create a Cryptocurrency Wallet App: an In-depth Guide for 2021
In this article, we are going to discuss cryptocurrency wallets, their types, benefits, main features, and challenges.

How to build a bitcoin wallet?

Now it’s time to move on to the main stages of Bitcoin wallet development. The first thing you should know is that there are two options: you can use ready-made templates and a set of tools to create an application, customizing it to your needs, or develop your wallet that will ideally fit your requirements from scratch.

Creating a custom wallet application

There are few open-source standard libraries available on the market. They can be used as a basis for your future app. The standard library provides the necessary functionality, configures the wallet for blockchain, and executes financial transactions.

Stages of developing a cryptocurrency wallet application

1. Installation

Download the API from the respective site

2. Create

Click the corresponding button in the menu to create a new wallet.

3. Setting

Provide your wallet name and set up permissions for outgoing and incoming transactions.

4. Integration

Select the third-party programs that you need (for example, to check the balance or create an address) and integrate them with your wallet.

Developing Bitcoin wallet apps from scratch

The other variant is to create your project from scratch. Bitcoin code is open source and free. So, it’s not a problem to find all the standards and create an independent application that fits personal preferences and business needs. This kind of development is more difficult and expensive, as it requires more time, effort, and knowledge. However, a custom application is always more valuable as it is perfect for all needs.

Stages of developing a custom wallet for cryptocurrency

1. Discovery Phase

This stage includes the analysis, project plan, workflow, and wireframes approval. It helps to define business goals, analyze and prepare a plan for further development and find optimal technologies.

2. Build a Prototype

In this phase, an actual prototype is designed based on the information gathered customer. It is a small working model of the required system.

3. Design

During the design phase, the actual conceptualization of the solution is created, that is, detailed software architecture is created that meets the specific requirements of the project.

4. Development

The development phase is about writing code and converting design documentation into real software during the software development process.

5. Quality Assurance

The QA team conducts a series of tests, including functionality testing, system integration and interoperability, and user acceptance testing to ensure that the code is clean and that the solution’s business goals are met.

Challenges of crypto wallet development

The crypto wallet development is a complicated task. So, you should be ready for the pitfalls you may face. Here is the list of the main of them.

Regulation

The legal status of cryptocurrencies and blockchain technology varies significantly from country to country.

Initial costs

Blockchain promises long-term cost savings, but its implementation requires a high initial price.

Integration with legacy systems

To migrate to a blockchain-based system, a company must either completely redesign its existing system or integrate it with a blockchain solution; both processes can take a lot of time, money, and experience

Power consumption

Blockchain networks require a significant amount of computing power to function; this can be a limiting factor for many companies

Security and privacy

Since the network is publicly available, this poses some challenges for governments and corporations looking to protect their sensitive data.

Public opinion

Society is not ready for mass blockchains as most people are unaware of the technology and its potential benefits.

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