Cryptocurrencies have completely revolutionized the financial paradigm. Investors, traders, and general individuals are gradually shifting from fiat currency to cryptocurrency for conducting their daily transactions. The major task at hand is to develop a safe and secure bitcoin wallet that will benefit the crypto market as a whole.
First and foremost, let us comprehend bitcoin wallets.
Bitcoin wallets are the system software that allow its users to send, receive, and store their cryptocurrencies.
Why go for bitcoin wallet development?
The number of cryptocurrency wallet users has been growing exponentially over the last few years. Statista reports that there were approximately 2.5 million wallet users in the first quarter of 2015 which grew to over 40 million by the end of the year 2019. Therefore, by considering the present situation and the benefits offered by a bitcoin wallet, the number of bitcoin wallet users is sure to increase.
Before understanding how to create a bitcoin wallet that is both safe and secure to deal with, we must primarily consider the benefits of bitcoin wallets.
- Faster and cheaper transactions- The transactions conducted through bitcoin wallets are backed by blockchain technology, thus these are both time and cost-efficient.
- No regular obligatory fees- There is no obligatory transaction fee to conduct a transaction through a crypto wallet. It depends upon the crypto wallet owner whether or not to charge any transaction fee.
- No government intermediation- The framework and operations of a bitcoin wallet are not in the hands of government officials.
- Immune from market uncertainties- Cryptocurrencies are not affected by political or economic uncertainties, thus they are always a better option to deal in.
How to create a secure bitcoin wallet?
Before going into the details of how to make a bitcoin wallet, you should first decide which type of crypto wallet you are looking forward to developing. They are of two forms, cold wallets (like, physical wallets) and hot wallets (which are always linked with the internet). After deciding the form of crypto wallet you wish to develop, let us move forward to knowing how to make it safe and secure.
1. Encrypt the bitcoin wallet
Encryption is one of the best techniques to allow crypto users to store their funds safely. It protects passwords from getting hacked by scammers.
2. Backup the wallet
Backing up a bitcoin wallet can protect the users from any unidentified threat in the name of human mistake or system failure. The backup process can be accomplished with the integration of mnemonic passphrase. It comes in three forms, 12-word, 18-word, and 24-word password. It makes the recovery of the wallet easier and also provides a consistent back-up plan in case of any uncertainty. Mnemonics are also easier to memorize and act as a safety option for crypto users.
3. Scalable architecture
The architecture of a bitcoin wallet should be scalable. It means that if you are looking to make some changes in the backend processing of the wallet, you should be able to do it with much ease. You should also keep on launching updates to align your wallet with the latest version. It is not only important from the security point of view but from the stability perspective.
Multi-signature is also one of the best attributes to improve the security of a wallet. It requires two or more individuals to authenticate and execute a transaction.
In today’s scenario, bitcoin wallets are in demand and require an experienced bitcoin wallet developer to assist businesses in building a feature-rich bitcoin wallet.
Antier Solutions is a globally recognized cryptocurrency product development company and has hands-on experience in developing great bitcoin wallet solutions. Our blockchain experts are well-versed in delivering both white label cryptocurrency wallet and customized cryptocurrency wallets developed from scratch.
Schedule a free demo of our white label cryptocurrency wallet or connect with our subject matter experts to share your business needs.