The concept of crypto wallets is a simple one – an account for sending and receiving payments like Bitcoins – but the technology behind them is far more complicated, and developers face a number of challenges. Crypto wallets must manage cryptocurrency transactions and digital keys efficiently and effectively in the blockchain network, while also providing a seamless user experience.
Which types of crypto wallets are there?
There are different types of cryptocurrency wallets. Wallets that use hardware — such as a USB stick storing the token and private key — as well as paper wallets — which are documents that hold copies of public and private keys — do not have digital user interfaces, so they are not covered in this article. Our focus will be on three types of software wallets: online Bitcoin wallets, desktop and mobile wallets.
Characteristics of Digital Wallet
To develop a crypto wallet that meets the standards for best practice, what digital characteristics are required? Below is an overview:
Aspects of usability
In the first instance, crypto wallets should provide seamless user experiences. In the financial sector, the increased popularity of fintech’s and challenger banks has led to an increase in attention paid to user experience – and customer expectations have grown for financial apps. If the crypto space is to keep up, then the following usability features are essential for crypto wallet development:
Easy-to-use interface
When creating a high-tech app like a crypto wallet, developers can easily lose sight of the fact that they are creating something for non-technical users. Aside from designing the underlying technology, it must also be a priority to design the app, the navigation, and the user guide. It’s important for developers to keep in mind that the market for crypto wallets is extremely saturated; if one app doesn’t function seamlessly, customers will download another.
Taking backups
For users to safeguard their funds against computer or software malfunctions, developers should allow them to back up their wallets. Although most users would benefit from creating a backup on their laptop storage or a SD card, not everyone will think to do so. Ensure the safety of your customers’ funds by integrating cloud storage apps like Dropbox or Google Drive into your wallet.
Support for multiple operating systems
A developer must design for all operating systems in order to appeal to the maximum number of possible users. In this case, cross-platform mobile app development is the best choice, as it simplifies the development process and provides greater flexibility. Additionally, it can help developers to develop faster, reduce costs, facilitate faster deployments, and enable continuous management.
A security policy
The development of crypto wallets must consider security. From the user’s perspective, nothing else matters without the ability to securely store cryptocurrencies. Users expect that crypto wallets will offer the same kind of security features as traditional banking apps to gain their trust.
A two-factor authentication system
With a crypto wallet that offers two-factor authentication, users’ funds are protected from hackers. Additionally, developers should ask users to verify their identity when they attempt to log in from an unknown IP address.
A logout procedure that is automated
For a crypto wallet to succeed, automatic logout is essential. A wallet should automatically log out users once they have been idle for a period of time, or after closing the app, to minimize the risk of others being able to access their accounts. It’s something traditional banks already do to protect their customers’ accounts.