It has been more than 13 years since the emergence of Bitcoin (BTC). The popular digital currency stirred the rise of a decentralized financial revolution. Likewise, investors need a secure avenue to store their assets. They can do this by depositing their funds in hardware and software wallets.
Retail and institutional traders can also transfer funds, process peer-to-peer (P2P) transactions, swap tokens, and build their wealth easily. Are you that entrepreneur who wishes to make a mark in the digital economy? Beginwhite label crypto wallet development now.
Know the meaning of Cryptocurrency
It is a digital asset that operates independently of centralized authorities like governments and financial institutions. Importantly, popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) operate on Peer-to-Peer (P2P) technology. Thus, no one controls its circulation and supply.
Generally, this depends on factors like the level of energy consumption, the location of miners, taxation laws of different governments, and use-cases. Moreover, investors can buy, sell, exchange, stake, invest, and also opt for yield farming by using DeFi platforms and Decentralized Exchanges (DEXes).
Where does all data get recorded? Both quantitative and qualitative information is stored on the distributed ledger. Thus, anyone can view the data from anywhere. Importantly, immutability is the special characteristic of a distributed ledger.
No one can change the stored information anytime. All the participants in the decentralized network would have to abide by the consensus mechanism (Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS).
Timestamp and a unique signature back all the recorded data securely. Thus, information like deposits, withdrawals, peer-to-peer (P2P) transactions, investments, and the transfer of funds from one wallet address to another is stored securely.
What are the different kinds of Crypto Wallets?
Desktop Wallets - Investors can use their personal computers and laptops for managing their portfolios 24x7x365. For instance, wallets like Exodus contain features like a swap option, conversion facility, (crypto-to-crypto, crypto-to-fiat, fiat-to-crypto, stablecoin-to-crypto), a 24x7 technical support centre, along with live graphs and charts.
Are the funds highly secure? Yes, traders can safeguard funds through anti-DDoS protection, biometric authentication, end-to-end encryption (E2E), 12-24 seed recovery phrases, QR code scanners, and two-factor authentication (2FA). Importantly, investors can store their digital assets offline to prevent hacking and phishing attacks.
Further, all desktop wallets are cross-platform compatible. Thus, retail and institutional investors can keep a close watch on the inflow and outflow of funds across operating systems like macOS, Linux, and Windows.
Software Wallets - As Internet penetration soars, online wallets are becoming more prominent now. The popular ones include Bitski, Coinbase Wallet, Dapper, MetaMask, MyEtherWallet (MEW), Kaikas, OperaTouch, Portis, Torus, Trust Wallet etc.
Investors can access numerous features like earning of interest through borrowing and lending of assets, key vault, social media login mechanism, linking of debit and credit cards, and token swapping. Moreover, most online wallets support a variety of Decentralized Applications (DApps), Crypto Exchanges, and Decentralized Finance (DeFi) projects.
Thus, traders have full control over their funds, private keys, and personal data. They can store their cryptos, DeFi tokens, and stablecoins. Eventually, hot wallets also offer access to a Decentralized Autonomous Organization (DAO).
As a result, investors get voting rights and decision-making powers. This helps them to influence proposals that impact the future growth and development of the crypto exchange/ DeFi project. They can also accept and reject proposals made by fellow users.
Hardware Wallets - There is a viable substitute for software wallets. It is none other than hardware wallets. The well-known ones comprise Ledger Nano S, Ledger Nano X, Trezor One, and Trezor Model T Wallet.
Generally, these wallets operate offline in the form of a USB device. Investors can shield their funds from hackers, phishers, and scammers. They can also store their secret recovery phrases in a password manager. This is useful if they have accounts on numerous crypto exchanges and DeFi platforms. They can categorize their secret codes and passwords by clicking options like Item/URL, title, user name, password, and secret note.
Are there any other special functionalities? Yes!. Traders can use functionalities like monochrome display, a touch-screen to watch the inflow and outflow of funds, PIN protection on personal computers and smartphones, cloud storage with end-to-end (E2E) encryption, a unique digital identity, individual shields, integration with Near Field Communication (NFC), and live tracking of account balances.
Mobile Wallets - Undoubtedly, there has been an explosion in smartphone usage. Hence, investors can use Android and iOS apps for managing their funds seamlessly. Generally, mobile wallets support popular cryptocurrencies, stablecoins, and DeFi tokens. This helps traders to easily buy, sell, exchange, and transfer their digital currencies.
Moreover, investors will benefit from a friendly user interface, quick KYC/AML verification, PIN code protection, token swapping (fiat-to-crypto, crypto-to-fiat, crypto-to-crypto, crypto-to-stablecoin, and crypto-to-DeFi tokens). Moreover, traders can become rich quickly as they will receive real-time updates from charts and graphs.
Thus, investors can make the right decision while buying, selling, staking, and swapping virtual currencies. They can do this after seeing data related to trading volume, changes in the prices of virtual currencies, exchange rates of numerous trading pairs, market capitalization, and the order history placed by buyers and sellers.
What are the numerous phases involved in creating a crypto wallet?
Decide the type - You can select either offline or online as per your business requirements, the preferences of investors, and the target market. Importantly, this decision can be made based on the kind of features, the security measures, and the friendliness of the user interface (UI).
Develop the Minimum Viable Product (MVP) - The basic functionalities of the hardware and software wallets are included in the prototype. This perfectly suits the requirements of retail and institutional investors.
Start Coding - A Cryptocurrency wallet development company will use advanced web frameworks, programming languages, and testing tools. This ensures an ultra-secure experience for investors when they buy, sell, and transfer virtual currencies.
Conduct testing - Rigorous testing is essential to get rid of bugs and glitches. Thus, investors preserve their funds and data from anti-DDoS attacks, hacking incidents, and, phishing attacks.
Launch the wallet - Post extensive testing of hardware and software wallets, it is finally launched in the market. Hence, investors can manage their portfolios in a glitch-free manner.
Wrapping Up
Do you want to move ahead of rivals in the booming digital economy? Commence yourCrypto wallet development by contacting a white-label solution provider now.
