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The scope and popularity of cryptocurrencies is growing quickly. Due to this, a significant increase has been observed in demand for crypto wallets widely used to store and manage assets. According to Future Market Insights, the global crypto wallets market revenue is set to reach US$ 1,505.9 million in 2023 and is expected to surpass US$ 3,675.4 million by 2033. By region, North America dominated the crypto wallet market by holding a share of 29.6%, followed by Europe. This means that the segment will open enormous opportunities for start-ups, investors, and varied-size enterprises and earn profitable returns with the guidance of crypto wallet development experts.
Various organizations provide crypto wallet development solutions, but not all will fit your business best. In this blog, we will highlight what crypto wallets are, why we need them, and the top 10 strategies to remember before buying a cryptocurrency wallet solution:
What is a Crypto Wallet why do we need it?
A crypto wallet is a software used to manage and transact cryptos securely and efficiently. It is just like a physical wallet that holds money, which is contrary to these wallets that hold private keys. The wallets are integral components of the crypto ecosystem and serve numerous purposes, such as:
- Secure Storage
- Ownership and control
- Viewing transaction history
- Managing multiple cryptos
- Trading
- Access financial services
10 Things to Consider Before Buying a Crypto Wallet Development Solution
Crypto wallet purchase is a crucial decision so here is the list of things to be considered before buying a solution:
1. Company’s Reputation-Indicates Work Quality
Before buying a cryptocurrency wallet solution, it’s vital to determine how long the company has been operating, who owns it, the services offered, or whether the solutions are secure. Consult them if they provide you with the answers; otherwise, start looking for the next one. Before making a decision, get an idea of the development solutions provided by the company in the past, along with the data management practices.
2. Security Mechanisms-Complete Crypto Asset Protection
Crypto wallets are susceptible to hacks and breaches. Therefore, advanced security features are impregnated within the wallet to prevent these threats. These mechanisms are generally two-factor authentication, encryption, Biometrics, and PIN. Sometimes, private key compromises can be catastrophic for businesses, so Multi-Party Computation techniques are integrated by dividing the private key into shards. The transaction is after multiple parties sign the transaction.
3. Technology Stack Involved
Before purchasing a crypto wallet development solution, it’s essential to determine the technology stack used for developing the wallet. Ensure that the wallet is integrated with state-of-the-art tools and technology to help it stay at par with the current trends. Also, it is vital to determine how private keys will be stored and who will keep them, you or the server.
4. Client’s Secrecy-Individual Decision
Most clients want to invest in a solution that holds their information privately. You must determine whether the wallet will take an email address or additional information. In certain cases, the wallet owners are verified via the Know Your Customer process. For some clients, obscurity is essential, and they won’t prefer disclosing their personal data.
5. UI Experience-Everlasting Impression
If you are a beginner, you will invest in a wallet with a simple and intuitive interface. This helps users procure the wallet’s capabilities without any hassle. Therefore, Invest in a wallet with a user-friendly interface that enhances the wallet experience of the users.
6. Compatibility-Prevents issues
Crypto wallets have been exclusively crafted for specific operating systems like Windows, iOS, and Android. Make sure the wallet you want to develop is compatible with your preferred operating system to prevent hassles later.
7. Reinforcement Capabilities-Regain Access
Check whether appropriate reinforcement mechanisms have been integrated within the wallet. It will help you regain access if your PC or mobile device has been attacked or information is lost. With appropriate reinforcement technology, you can access your cryptos again.
8. Transparency-Top-of-the-Line Source Code
A wallet should specify its administrators, activity strategies, and levels of safety. Find an open-source wallet with an enhanced level of crypto security. Also, invest in a wallet solution with an advanced source code for the smooth working of the wallet.
9. Ongoing Maintenance Support-Smooth Working
Once the wallet has been deployed, it requires round-the-clock support and maintenance. This will keep security issues at bay and deliver an advanced solution. If you cannot do it independently, seek assistance from a crypto wallet development partner.
10. Shared Account-Multi-Signature Support
If you are sharing the wallet with someone else, getting approval from the parties to perform a transaction is essential. This feature is known as Multi-Sig and has been in trend for a while. Using the feature, the buyers can set up private keys to a wallet so that colleagues or families can access it.
