Digital currencies like Bitcoin or Ethereum are labeled as the future. They completely eliminate the need for a governing body like a central bank and emphasize on anonymity. While they are still tackling issues like price fluctuation and mass adoption, the underlying concept is novel. With more and more people beginning to understand the benefits of cryptocurrencies, they are gaining acceptance from all quarters.
But, a cryptocurrency is only as effective as the wallet housing it. When one thinks of a cryptocurrency wallet, an image of a digital vault brimming with virtual coins comes to mind, which is not the case. Instead, a full-fledged wallet only stores the public or private keys of addresses. What’s more, a wallet does not have to be a digital one, necessarily. There are many tangible options, such as physical drives and even paper, that offer excellent protection of stored funds. Meanwhile, software-based wallets offer better mobility and access.
Building a cryptocurrency wallet in 2019 is not a very complicated affair. There are several technology solution providers offering premium services. One can easily use their help to create a robust platform that allows users to store funds and execute transactions. However, it is always wise to understand the subtleties of this sector before venturing into it. Here is a list of all factors to consider when building your own platform.
According to CoinMarketCap, there are close to 2400 cryptocurrencies available in the market. However, most wallet services available in the market to extend their support to only the popular cryptos. Your platform could be a game-changer if you include assistance to not only the big names but also smaller niche currencies and altcoins.
As mentioned previously, with so many cryptocurrencies available and with each one boasting of independent prices, it becomes a Herculean task to track and manage the exchange rates. This is where integrating a simple conversion tool will do wonders to your platform. It will not only help save time and effort of the customer, but it is also a very convenient feature that your patrons will immensely appreciate.
One of the most important aspects of the wallet that a user will always look at is the amount of protection it offers. It should be remembered that storing other people’s assets comes with a lot of responsibility. Hence, proper steps should be taken to guarantee the safety of the stored assets. Include features like two-factor authentication, jail login, multi-signature transactions, and much more to offer round-the-clock security and dissuade hackers.
Also Read: Build Your Own Cryptocurrency Wallet
Offline fund storage options or better known as cold wallets are regarded as one of the safest ways to store cryptocurrency. Even though you plan on launching a software-based solution, you can always integrate a useful offline functionality. Introduce a feature that allows your customers to export their funds into a paper wallet format easily. One can simply print the code to store or transact securely.
With cryptocurrency prices constantly rising and falling like the tide, users involved in trading have to always stay on top of the news. You can help your users by offering an instant notification service that informs users of price changes and other related news. You can also use this feature to relay security and account-related updates as well.
When it comes to the cost of building a cryptocurrency wallet, one can expect to spend anything between $14,000 to $80,000. The final cost is also dependant on a variety of factors like currency support, security features, and other customizations. Moreover, you can always negotiate with the technology partner of your choice to save on costs.
Wallets are the underrated heroes of the cryptocurrency sector. Without them, it would be impossible to access this revolutionary financial instrument. With the climate becoming favorable for cryptocurrencies, the demand for feature-rich and secure storage options is steadily increasing. This growth, in turn, provides a profitable opportunity for entrepreneurs offering wallet services.