A Quick Guide To Crypto Wallet
With the tremendous growth of the digital currency market, people are getting more involved in crypto trading. For tangible currency or actual cash, one can easily avail a normal wallet to store the money safely. But when it comes to crypto or digital currency, people need a digital wallet, or they will not be able to trade and store crypto. Crypto wallets have become an essential component of the DeFi, blockchains and investment platforms with cross-chain compatibility.
There are different types of non-custodian crypto wallets available. These wallets provide features like enhanced security layers, quick transactions and complete ownership of crypto assets. The basic function of these wallets is to store a private key. The crypto wallets do not directly store the cryptocurrency but are an indirect medium to store the digital money via private key. This article is a guide to understanding crypto wallets and their types.
What is a crypto wallet?
A Crypto wallet is software to store, send and receive cryptocurrency. It tracks and records the transaction of the cryptocurrency. Crypto traders can easily download and install a crypto wallet on any compatible device like a phone, laptop, etc. There are two fundamental components of a crypto wallet:
- Public Key
- Private Key
A public key is the wallet address of the crypto user. It is similar to the bank account number, which is shared with others to send, receive and store the cryptocurrency.
Your crypto wallet’s private key is similar to your bank account password or the PIN for your debit card, both of which are private. You don’t want to give up your PIN to just anybody since it gives them immediate access to your bank account.
The blockchain based digital coins are not immediately stored in the cryptocurrency wallet. As cryptocurrency does not exist in any tangible form, the crypto wallet stores information about your public and private keys, which signifies your cryptocurrency ownership.
What are the different types of crypto wallets?
Various crypto wallet solutions are available in the market based on what users intend to do with cryptocurrency. Several long-term crypto investors want to keep their wallets for a long time. As a result, users may choose a wallet with advanced security measures. Users who frequently trade cryptocurrency, on the other hand, may seek convenience and quickness. Different types of crypto wallets are as follows:
Mobile wallets can be accessed from any device with a web browser, and they work on both the iOS and Android platforms. These wallets’ user interfaces are meant to make it easy for on-the-go users to utilize them while still giving them access to all of the wallet’s features.
Desktop crypto wallets offer ready-to-use applications that run on any standard Windows, Linux, or Mac computer, including desktops and laptops. Users can keep their private keys on their computers using desktop wallets.
Web wallets are stored in the form of browser extensions. They can be accessed from any computer using web interfaces that require a verified log-in. The users’ private keys are protected by log-in security and encryption.
A cryptocurrency wallet is required for all cryptocurrency transactions, and it will let users store, give, trade, and exchange a variety of digital currencies such as Bitcoin, Ripple, and Ether. Till now we have been talking about the various crypto wallets, let’s now understand their development process also.
What are the various phases of crypto wallet development?
There are various phases to develop a crypto wallet. You will begin with deciding the type of wallet you want for your crypto trade depending upon the investors, market target, security features and user interface accessibility. After selecting the wallet type, you will create a minimum viable product prototype. The main functions of the crypto wallet are included in this prototype.
Once the MVP is developed, start the coding with various programming languages, advanced web frameworks and testing tools. Complete the coding and conduct a test run of the wallet to get rid of any bugs present and minimize the scope of any anti-DDoS attacks, hacking and phishing attacks.
After in-depth testing of the hardware and software crypto wallet, you can launch it in the market. There are several crypto wallet solutions available in the solution development market. Some companies even take up Whitelabel crypto wallet solutions developed by others and integrate the required features by customizing them.