Over the past few years, cryptocurrencies are making revolutions in the crypto market. These digital currencies were introduced a few years back, but they made a huge impact. We all know that cryptocurrencies are digitalized that are not governed by a third party. Then, you will have a question ‘Where will these cryptocurrencies be stored?’
Here is the answer! Like our fiat currency, cryptocurrencies are also stored in a digitalized crypto wallet. These wallets are essential for all crypto-related activities like crowdfunding, token creation, cryptocurrency storage, and many more. Hence, the need and demand for developing crypto wallets are always high. Before developing a wallet, you must be aware of the various types of wallets.
In this article, we shall discuss crypto wallets, the major types of crypto wallets, and the must-have features that should be included while development.
What is a crypto wallet?
A crypto wallet is a digitalized wallet where the crypto coins and tokens are stored. With wallets, we can send, receive, swap, and track our account’s cryptocurrencies. They can be accessed with private and public keys. The public key is a wallet address that holds certain alphanumeric keys. Private keys are randomly generated words that give access to the wallets. For example, the public key is a bank’s account number whereas the private key is its ATM pin.
These Wallets are essential for all crypto-related activities and it safeguards crypto assets. There are a lot of different kinds of wallets in existence with unique features. Now, we can see the major types of crypto wallets in detail.
Types of Crypto Wallets
Crypto wallets are classified based on their functionalities, features, and security factors. In that sense, the popular types of wallets are,
- Custodial Wallets
- Non-Custodial Wallets
In Custodial Wallets, the third party or custodian ensures the crypto transactions, manages the user’s wallet key, and takes responsibility for the crypto assets. Strong security measures like 2FA (two-factor authentication), fingerprint or facial recognition, security pin or password, and the email confirmation are used to access the custodial wallet. The custodial wallets are easy to use. Some of the popular examples of custodial wallets are Kraken, Coinbase, binance, and more. If the passwords for accessing the wallets are lost they can be easily recovered. Hence, this kind of wallet is preferred by beginners in the crypto market.
In Non-Custodial wallets, the user takes full responsibility for the wallets and the cryptocurrencies. By using this wallet, the holder will handle the crypto transactions and hold the private and public keys. These non-custodial wallets can be used as an app or browser extension. Non-custodial wallets can be connected only in decentralized exchanges.
As users will handle the wallets by themselves, they are safe and secure to use. Some popular examples of non-custodial wallets are Metamask, Trust Wallet, and many others.
Non-Custodial wallets can be used with or without internet access. Based on these, they are classified as hot and cold wallets.
A wallet that works with internet access is known as a hot wallet. These hot wallets are very convenient for holding private and public keys. This type of wallet is mostly preferred by beginners and regular traders. With hot wallets, transactions can be done quickly. Hot wallets can be used in three different modes. They are,
- Mobile Wallets – For quick payment and easy convenience, wallets are created as mobile apps. By downloading the wallet apps on mobile, it can be used everywhere with internet access. Some examples of mobile wallets are the Coinbase wallet, Metamask wallet, Zengo wallet, etc.
- Desktop Wallet – By downloading the wallet apps on the desktop, it can be used with internet access. Bitcoin Core and Electrum are some examples of these types of wallets.
- Web Wallet – With the website extension of that hot wallet, it can be used anywhere. Many wallet apps are now available as Chrome extensions. For example, Metamask, a non-custodial wallet is now available as both a mobile app and a browser extension.
In Cold Wallets, the crypto coins and tokens can be accessed offline. The wallet’s private and public key details are stored in hardware devices like USBs that are not connected to the internet. These types of wallets are mostly used to protect wallet information from hacking and theft. The popular forms of cold wallets are,
- Hardware Wallets – Hardware wallets keep the cryptos safe in physical devices like USBs, and Hard disk drives. For crypto-related activities, the wallets are connected to a computer and they can be used. Hence, they are highly-secured wallets.
- Paper Wallets – The wallet’s private and public keys are stored on paper. For the transaction process, the user has to carry that paper printout. In that printout, alphanumeric strings of private and public keys are printed. And also, a QR (Quick Response) code is printed.
So these are the popular types of crypto wallets. For storing crypto tokens, wallets are very essential. Hence, the demand and need for wallets are always high.
Unique Features of Crypto Wallets
As wallets are essential to execute a crypto transaction, startups are now developing them with enriched features. Some of the must-have features for developing a wallet are listed below,
- Multiple Currency Storage and NFT support – Each cryptocurrency is developed in various blockchains. So, it is better to develop a wallet that supports multiple currency storage. And also, NFTs can be stored in wallets.
- Security Features – As wallets are essential for trading and transacting cryptos, unique security features must be provided. Various security features like biometric authentication, 2FA (Two-factor Authentication), and facial recognition must be provided.
- Cryptocurrency conversion Rates – The wallets must be provided with automated conversion rates as different cryptocurrencies are exchanged with each other.
- Market Update and Account Details – The current market pricing and details are to be updated in real-time. And, the wallet account details must be updated.
- Automatic log-out option – Once you have been logged in for a long time, it is easy to hack wallet information. Hence, the automatic signing-off option is an effective feature included for security purposes.
These are the common features that should be included while developing a wallet. Depending on the type of crypto wallet, the functionality and security features can be included.
Why choose Icoclone for Crypto Wallet Development?
Icoclone provides you with the best and most user-friendly Crypto wallet development company for your crypto business. Our skilled developers help you to develop a highly-secured, reliable, and customizable type of wallet. As a startup, if you are seeking to launch your ICO or STO, Icoclone provides an ICO or STO script that comes as a whole package along with high-secured wallets, unique tokens, and an ICO or STO dashboard at an affordable cost.
Our developers will provide you with a unique wallet for your crypto business with any of the above-mentioned types as per your needs and requirements. Our experts will provide you with the best wallet without any technical issues or bugs. And also, Our developers are available 24*7 for customer support.
Schedule a free demo from our skilled developers to launch your wallet!!