Cryptocurrency Wallet Development – A Viable Business Model For Cryptopreneurs
It all started with the advent of one single cryptocurrency. Yes, I’m talking about “Bitcoin,” which is considered the first decentralized cryptocurrency that made its appearance in the digital space in 2009. The massive success of Bitcoin paved the way for the rise of other cryptocurrencies.
Private transactions, outstanding security, and cross-border payments are compelling reasons that made cryptocurrencies globally acclaimed within ten years. According to reliable statistics, more than 18,000 cryptocurrencies will exist in 2022, and the fame of cryptocurrency has made it possible for newcomers to enter the global crypto market with bigger dreams.
On the other hand, crypto-related business models also just began to seize the attention of crypto folks. Cryptocurrency wallet development is one such successful business model on the list. Since buying and trading cryptocurrencies have become so widespread, the part of a crypto wallet has become so evident these days.
Many leading businesses and aspiring cryptopreneurs have already expressed interest in developing a feature-rich cryptocurrency wallet since they know the financial benefits and the potential return on investment (ROI). This blog is an eyeopener if you are one of those aspiring businesses looking for a way to develop your cryptocurrency wallet. So let’s get started right now.
A Brief Introduction About Cryptocurrency Wallet
Security is always the NO.1 priority for cryptocurrencies. The security-based obstacles are perfectly solved with the introduction of cryptocurrency wallets. The crypto wallet saves the keys for you to confirm your cryptocurrency transactions and provides an interface to access your assets.
It is used to handle, store, and facilitate transactions involving a variety of cryptocurrencies, including Bitcoin, Ethereum, and other digital currencies. The crypto wallet gets all the advantages of the underlying blockchain technology, such as immutability, security, and decentralization.
How does a cryptocurrency wallet function?
Blockchain technology supports cryptocurrency wallets, and these wallets usually have two keys – a private key and a public key. A private key is required to unlock a crypto wallet and gain access to the funds held inside, whereas the public key is your wallet address that is shared with other people to transfer payments. The private key must be protected and kept confidential at all times. The possibility of transferring money to someone else’s cryptocurrency wallet is eliminated because one can’t generate the same crypto wallet address twice.
Types of Cryptocurrency Wallets
- Hardware Wallets
- Software Wallets
- Mobile Wallets
- Web Wallets
- Desktop Wallets
- Paper Wallets
A Closer Look At The Features Of A Cryptocurrency Wallet
Mentioned below are some of the main features available in a crypto wallet that simplify the process of crypto transactions:
Feature #1 – Automatic Scanning
The QR code scanner makes it easier to exchange cryptocurrency by allowing automatic scanning. This will prevent manual human errors when entering the crypto wallet address, which is important. Since it appears to be a little longer, it is possible to enter the incorrect wallet address.
Feature #2 – Robust User Authentication
A crypto wallet with authentication is essential since there is a chance of hacking activity occurring. The two main security factors – 2FA and multi-factor authentication are carried out to eliminate all malicious activities.
Feature #3 – Multi-Currency Support
At one point, Bitcoin was the only cryptocurrency that could be traded. But as Bitcoin’s popularity increased, several new cryptocurrencies emerged, including Ethereum, Cardano, etc. Therefore, a crypto wallet supporting multiple cryptocurrencies will let you reach a wide range of audiences in a short span.
Feature #4 – Automatic Session Logout
Automatic session logout is a requirement that must be taken into account while developing a cryptocurrency wallet. This guarantees the quick, hassle-free transfer of cryptocurrencies and keeps the wallet away from misutilization. In the event of an extended period of inactivity, this will end the users’ session.
Feature #5 – Conversion Rates Update
The multi-crypto wallet software provides the most up-to-date and real-time value of virtual currencies thanks to the conversion rates updates feature. This feature helps out traders in making the right decisions on trading cryptocurrencies.
Feature #6 – Multi-Signature
Users can keep track of transaction details using the built-in multi-signature feature of the wallet. It’s important to note that every user will have a different recovery phrase for approving the transaction.
Feature #7 – Automated Rejection of Duplicate Payments
The duplicate transaction will be avoided to prevent accruing additional fees. It is the most typical functionality to be incorporated when developing a crypto wallet.
Various Revenue Streams Available With Cryptocurrency Wallet Development
Transaction Or Withdrawal Fee – It is one of the main ways that a crypto wallet can generate income. For each successful cryptocurrency transaction, you can keep a fixed amount of fees as the wallet’s owner.
Staking – If you have been in the crypto space for a long time, you would’ve heard about the term – Staking. It is nothing but a process where an asset is locked for a specific time, and in exchange, the user receives rewards in cryptocurrency. The owner may utilize the staked cryptocurrency for liquidity once it is in the wallet so that you can build your user base and earn a decent income.
Consultation fee – By providing advisory services, the owner of the cryptocurrency wallet can set an amount of commission. If you make the correct investment, you can help the users. You can also get a chance to win a good amount for directing them in the right way.
Advertisement – Many third-party firms will contact you to add adverts if your cryptocurrency wallet gains popularity and a sizable user base.
Concluding Thoughts
Over the last few years, the crypto market reached great heights, and we have heard many testimonies regarding investors and traders making big money. Cryptocurrency Wallet Development is gaining huge traction in the business sphere.
White-label solutions are the perfect option for an entrepreneur who needs a budget-friendly solution to develop a cryptocurrency wallet. A white label solution is a 100% ready-made solution that can be customized as per your business needs.
Finding the right crypto wallet developer is, of course, a daunting task. So, using the best white label software solution is the greatest choice if you want to construct your crypto wallet rapidly. Get in touch with a leading crypto wallet developer if you have plans to develop a feature-rich cryptocurrency wallet in a short span.
Before finalizing the crypto wallet development firm, one has to completely examine the firm’s portfolio, experience, and client testimonials. Without a doubt, it’s an auspicious time to start your crypto wallet business and generate massive profits in the crypto sphere.
