Cryptocurrency Wallet Development: Key Steps to Create a Custom Wallet

Why is there a need for cryptocurrency wallet development?

In the last few years, we have witnessed a rapid growth of the cryptocurrency market. Total market capitalization reached $2.64 trillion in 2024, which didn’t surpass the peak of $2.8 trillion in 2021, but still, these numbers continue to surprise traders and investors today. The involvement of both companies and ordinary users in the cryptocurrency market increases, which means that more and more people in the world get access to crypto trading.

As a result, the demand for high-quality and reliably protected solutions for storing crypto assets rises. According to Vision Research Reports, the market of crypto wallets is expected to grow to $94.45 billion in the next 10 years.

The crypto wallet is designed to solve current problems, such as unreliable token storage on exchanges, and complex transaction and conversion systems. In a high-quality wallet application, tokens can be transferred from one address to another or converted in just a few clicks. The internal security protocol takes care of the security of the funds, and seed phrases and strong passwords, which only the user has access to, create an additional layer of protection.

From a developer’s perspective, it’s profitable to make a cryptocurrency wallet application because they can earn money on commissions during transfers and conversions of currencies and advertising. That’s why the idea to create a cryptocurrency wallet today seems promising.

Core cryptocurrency wallet features 

What functions should a cryptocurrency wallet application have? As a rule, it is created to avoid problems that are associated with trading and storing funds on the crypto exchange or marketplace and to enhance wallet security. Based on this, the main requirements for the application are:

A unique access key. Every crypto wallet should provide its users with unique public and private keys. There should be an opportunity to add a personal password, two-factor authentication, or biometric authentication. 

Session duration. Limiting the session duration is an effective security solution. This practice exists in banking applications. When some time passes without user activity, the application closes automatically. To resume the session, a user needs to re-enter the login password.

Several supported cryptocurrencies. There are single-currency crypto wallets, such as Bitcoin wallet or Ethereum wallet, but now their popularity is not as high as that of multi-currency alternatives. It is often convenient for investors and traders to have a diversified portfolio of assets and store them in one place. The most efficient crypto wallets constantly add new tokens to their list due to the growing demand from the crypto community.

Buying and selling cryptocurrencies. The crypto wallet application should make it possible to buy and sell cryptocurrency assets, execute buy and sell orders, and organize trades between users.

Transaction options. You need to allow sending cryptocurrencies to other wallets using the wallet number (public key). The transfer of cryptocurrencies from one user to another is an integral part of every wallet app.

QR codes. QR codes simplify functions such as making a transaction, receiving a transfer of assets to your address, logging into the crypto wallet app, securely authorizing a user on the platform, or confirming any other actions.

Push notifications. Notifications may include one-time codes to confirm transactions, as well as information about successful crediting or debiting assets or an error. The push notification is important due to security concerns. If some assets have been debited from the account without the user’s consent, the notification will immediately inform the owner about it.

Constant updates of the conversion rate. Due to the high volatility of crypto assets, the exchange rate is constantly changing. Crypto wallets allow users to transfer money in different ways, for example, in Bitcoin or altcoins. Your application needs to synchronize with the blockchain network and show up-to-date information about conversion rates at the time of the transaction. 

Сompatibility with iOS and Android. Launch the app simultaneously on the most popular operating systems: iOS and Android. You can achieve it with React Native that helps developers use one code base to develop two apps.

Nice-to-have features in cryptocurrency wallets

Besides the main mandatory functions, you can also stand out from the competition by adding the following features:

Commission calculation. Some crypto wallets have a field for calculating the commission, or they automatically show how much you need to pay depending on the transaction amount. This feature adds convenience to the user and makes the system more transparent.

Conversion of fiat into cryptocurrency. Not all crypto wallets allow you to convert US dollars or other fiat currencies into cryptocurrencies. However, such a feature can add popularity to your wallet and perfectly suit beginners in the world of crypto.

Payment gateways. A crypto payment gateway is a tool that allows users to pay with crypto for goods and services and merchants to accept crypto payments. Advanced crypto payment providers offer to automatically convert assets into fiat currencies.

Collaboration with cryptocurrency exchanges (DEXes). Many wallets need to be connected to the web version of a decentralized exchange or NFT marketplace to buy and sell assets on this website. A simplified or automatic connection to popular exchangers will be a great addition to your service. 

Several accounts for cryptocurrencies. To diversify the portfolio, investors and traders buy and store several different cryptocurrencies at the same time. You can add the ability to create multiple accounts for different currencies in your crypto wallet application. So there will be a division between assets. 

Staking. Many platforms, including Binance and Coinbase, have added the ability to stake cryptocurrencies using a cryptocurrency wallet. Storing cryptocurrencies to maintain network performance and receive rewards for this is a popular passive income among crypto enthusiasts.

Tech stack for crypto wallet development

To develop a crypto wallet application, you will need to choose either a desktop, a web, or a mobile app. Let’s explore some useful and advanced technologies that can be used for every type of app. 

Electron.js for desktop apps. Electron.js allows developers to create native cross-platform desktop applications with JavaScript, HTML, and CSS. This open-source framework uses Chromium and Node.js. It makes it possible to build apps compatible with Mac, Windows, and Linux. Useful Electron JS features include automatic updates, crash reporting, debugging, and profiling.

React.js and Node.js for web apps. React.js and Node.js are open-source JavaScript libraries for web applications. React is a popular frontend library for creating interactive user interfaces. It offers regular updates and a convenient toolset. Node.js is a backend development environment that allows specialists to create scalable web applications with high performance, flexibility, and interoperability.

React Native for mobile apps. React Native is a framework used to create mobile applications for iOS and Android. It makes it possible to develop apps for the two platforms using a single code base. Powered by React.js, React Native allows developers to use a set of user interface components to quickly compile and launch mobile applications. It also offers an important live update function and a user-friendly wallet interface.

Most professionals agree that these technologies are the best choice for cryptocurrency wallet development. The Purrweb team is no exception, which is why we create desktop apps with Electron.js, web apps with React.js and Node.js, and use React Native when creating mobile applications.

How to build a crypto wallet in 5 steps

Let’s take a look at the crypto wallet app development stages.

Step 1. Analyze the project

This step will serve as a foundation for cryptocurrency wallet development. Without a project analysis, you may develop an app that will have no target audience. A thorough analysis will help you get a rough idea of the app as well as avoid unnecessary expenses.

In this step, you will:

Conduct competitor research. Look at your potential competitors and analyze their products. This can include reading reviews on app stores and downloading their crypto wallet apps.

Identify the target audience. View reports with statistics on crypto app users, including information about their location, age, and habits. This data will help you create user personas that will represent your ideal users.

Define the app’s features. Think about the features that your app will offer. For example, it can be a basic crypto wallet app that will allow users to store assets and make transactions. Or, it can also include crypto trading and exchange features.

Set timeframes and a budget. The information gathered about the details of the project will help you and your development team decide on the scope of the work. You will then discuss the development costs and timeframes.

As a result of this step, you’ll get a clear understanding of your future crypto app and have a detailed development plan.

Step 2. Create a design

At this step, you will be gathering references, thinking through the flow of the app, and visualizing it in the form of a UI/UX design.

During the design process, it’s important to put yourself in the users’ shoes and understand whether they will feel comfortable using your app. Your crypto wallet app needs to be user-friendly so that people new to cryptocurrency can pick it up instantly. Make sure that all the key features are easily accessible. A complicated design can ruin a positive impression, and users are unlikely to continue using your app.

By the end of this stage, you’ll have a user-friendly interface prototype that developers will implement into your crypto wallet app.

Step 3. Develop a web or mobile application

This is where the development begins.

To test the hypothesis and not invest too much money in development at the beginning, we recommend you develop an MVP with a basic set of features. If the application gets a good response from the target audience, you can develop it further and add new features.

During this stage, your development team will:

Select the technology stack. To decide on the tech stack and programming language, choose whether you want to develop a web or mobile application. If you want your application to be accessible to as many people as possible, consider developing it for multiple operating systems.

Integrate blockchain. It is an essential part of any crypto application. Depending on your needs, you can decide which blockchain to integrate into your app. There are more than 1,000 blockchains available today, with Bitcoin and Ethereum being among the most popular choices.

Implement security features. Any money-related application requires additional protection to prevent hackers from stealing users’ assets. Implement multi-factor authentication and advanced encryption capabilities. Familiarize yourself with important regulations such as AML, KYC, and CTF to increase security and reduce the chance of violating laws.

At the end of the development phase, you’ll have a fully functioning crypto wallet app that is almost ready for the release.

Step 4. Test the app

Testing will help you identify security vulnerabilities and bugs that went unnoticed during development.

The QA team performs different types of diagnostics. They perform edge cases, usability, performance, and security tests. The more types of testing they perform, the fewer bugs will make it to the release.

After making sure the crypto wallet app works properly and is secure enough, you can finally release it to the app stores.

Step 5. Release the app and get feedback

After you release the crypto wallet app, it is important to continuously monitor users’ impressions of your app. The feedback will help you develop and improve the product. Positive feedback is great, but you also need to pay attention to the negative comments. Filter them out and only select constructive criticism.

As a result, you will get a fully-usable application.

Of course, if you have the right skills, you can create a wallet yourself, but if not, it is easier and more reasonable to seek help from professionals. If you have a cool idea and need technical help, the Purrweb team is always ready to help you.

Challenges in cryptocurrency wallet development 

Like any other niche, crypto app development has its challenges. Knowing them beforehand, will always be a good idea. Just to be ready, let’s go over the 3 biggest hurdles you might face.

Security considerations

The biggest challenge is to make the money transaction safe. To do this, a crypto wallet needs to have a blockchain integration. The chunks of transaction data encrypted with blockchain are impossible to be changed or deleted, so the user’s money can be safe.

Also, there’s an anonymity concern. To allow users to send money without exposing personal information, the app should have no backend. The data should be pulled through blockchain nodes via APIs. This will ensure complete anonymity.

UI/UX design concerns

Crypto apps have a lot of features, and it’s very easy for users to get lost and confused. The challenge for crypto services is to deliver everything with an attractive interface and a seamless user experience. This can help onboard newcomers and keep existing users engaged. A good UI/UX can also reduce errors like misclicks or sending money to the wrong address.

Regulatory issues

Cryptocurrencies are no longer in the gray zone, as more and more countries are establishing laws and protocols to govern crypto operations. For example, many countries require AML and KYC procedures to prevent money laundering and terrorist financing. 

Note that every country has its own rules in terms of cryptocurrency. If you want to operate globally, you must comply with the regulations of each country where you do business.

You can overcome these challenges if you partner with an experienced software development company. They know the pitfalls behind wallet development and have the expertise to effectively navigate them.

How much does it cost to make a cryptocurrency wallet?

The application development market offers many solutions in different price categories. Our company can share examples in ready-made crypto wallet applications. 

The Purrweb company estimates the cost of the project from the first day of the customer’s request. We need to discuss all aspects of the work, app functions, preferred design, and personal wishes. If you are going to develop applications for a crypto wallet, you should familiarize yourself with the action plan. Based on the core features discussed above, our team estimates the pace and timing of crypto wallet development as follows: 

Stage	Estimation in hours	Estimation in weeks	Approximate costs
Project analysis	0	0	$0
UI/UX design	137 hours	5 weeks	$6,840
App development	1050 hours	12 weeks	$62,100
QA (Quality Assurance)	360 hours	in parallel with the development	$7,200
Project management	during the whole project	during the whole project	$4,950

Overall, the cryptocurrency wallet development will cost you from $80,000 to $85,000 To get more information and an individual offer, please contact us.

Top 5 crypto wallets

Let’s look at some of the most popular crypto services. These apps and devices attracted millions of users around the world, and their features can serve as an example for creating your bitcoin wallet or multi-currency wallet.

MetaMask 

This is one of the most popular decentralized wallets. It is built on the Ethereum blockchain technology and serves for storing, transferring, and receiving tokens of the ERC-20 and ERC-721 standards. The feature of the wallet is that it is convenient for working with decentralized exchanges, smart contracts, and DeFi applications. MetaMask has high compatibility with hardware wallets.

📱 The MetaMask wallet is an extension for Google Chrome and a mobile application.

🔒 MetaMask supports BNB SmartChain (BSC), Polygon, Harmony, and a few more blockchains, and approximately 200,000 tokens of ERC-20 or compatible with the ERC-20 token standard.

Check out our article, if you want to dig deeper into how to build blockchain application.

Exodus 

With Exodus wallet, users can buy, sell, and exchange cryptocurrencies. The wallet has a nice and simple design and great functionality, and there are regular automatic software updates. Exodus encrypts private keys and transaction data on the device. It is compatible with the Trezor hardware wallet.

📱 There are desktop and mobile application options. 

🔒 Exodus supports Bitcoin, Ethereum, Litecoin, XRP, and a few more blockchains, the ERC20 token standard, and over 150 cryptocurrency assets.

Trust Wallet

Trust Wallet supports ERC-20, BEP-2, and BEP-20 token standards, NFT tokens, and DApps. Trust Wallet includes a built-in Web 3 browser. The wallet created by Binance is compatible with all services of the platform.

📱 Trust is a hot mobile wallet application available for iOS and Android.

🔒 Trust Wallet supports more than 40 blockchains, including Bitcoin, Ethereum, Litecoin, Solana, and Polygon, and more than 4.5 million crypto assets.

Ledger Nano

There are two types of Ledger hardware wallets: Nano X and Nano S. 

Ledger Nano X is a physical device that can be connected to the smartphone via Bluetooth or to the PC via USB. This hardware multi-currency storage is popular among long-term investors.

Ledger Nano S is a bit cheaper than the Nano X and does not support Bluetooth, but still provides a high degree of protection. Although this model was released in 2016, it is still one of the most popular hardware wallets. 

📱 The user can manage digital assets through the Ledger Live desktop or mobile application available for iOS and Android.

🔒 Ledger supports more than 5,500 cryptocurrencies and tokens.

Trezor Model T

Trezor is a hardware crypto wallet. It is one of the most popular devices on the market. The wallet provides an isolated environment for signing cryptocurrency transactions offline. Trezor is equipped with a touchscreen and has a convenient interface, which makes it easier to use. You can send transactions to multiple recipients at once and use universal two-factor authentication to protect your assets.

📱 Trezor is compatible with Ethereum-based web- and desktop wallets. 

🔒 Trezor Model T can store more than 1800 different cryptocurrencies and tokens.

Wrapping up

Now you know how to make a cryptocurrency wallet in several steps. We hope that our article was useful for you. If you want to build a cryptocurrency wallet, you can familiarize yourself with our cases of the development of such applications. Leave a request, and our manager will contact you to discuss the project, the stage of its development, and the costs. We will be happy to help your idea come true, and our experienced team of developers guarantees the creation of convenient and high-quality applications. 

Launch and improve your project with Purrweb.

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