Increasing popularity and demands for cryptocurrencies has also increased the utilization of cryptocurrency wallets. Even though investors and other novice traders leverage the exchange wallets to store their crypto assets, customized wallets are much safer. Professional crypto traders shower their interest in customized cryptocurrency wallet development for better trading experience. Exchange platforms and crypto market space is highly volatile. Delay in a trade transaction can swap the profit rates to a greater extent, hence concluding the deal within seconds is mandatory. So, building the crypto wallet intuitively is mandatory for traders.
In this blog post, let’s scout around the challenges faced in the crypto wallet development process!
Challenges faced in crypto wallet development
Hectic than conventional payment systems
Conventional payment systems like credit/debit cards, bank transfers are tuned to an extensive level with years of experience. Here’s the list of some easy conventional payment processes, whereas the crypto transaction does not have. The cancellation of a transaction becomes easier and simple in conventional payment methods. A crypto transaction can’t be canceled easily. Moreover, the secret private keys lost once can never be recovered in the wallet app.
The utilization of conventional payment methods is limited, and hence there is no threat of losing assets completely, whereas, in the crypto space, there is no transaction limit.
The loss in conventional payment systems has the possibility of recoveries at least to a minimal amount, whereas the crypto assets once lost is lost.
Conventional payment systems have prevalent fraud detection techniques for certain patterns of suspicious transactions. In crypto payment systems, even though there is community governance in prevalence, there exists fraud. As the crypto wallet, private keys are completely owned by the owners, the community does not take responsibility for the fraudulent transactions.
The Crypto wallet app stores the public and private keys to interact with the native blockchain network. The crypto owner completely holds control over the private keys and the transaction. The wallet app encrypts the private keys with cryptographic hashes, and the assets are stored securely.
While building customized wallet apps, you can enhance the security of your assets by enriching the multi-factor authentication. In crypto wallets, the private keys are generated in real-time; hence it has unique cryptographic hashing algorithms to secure your assets on the blockchain network.
If you own a reasonable amount of crypto assets in a single wallet, then storing it in hot wallets are extremely vulnerable. The crypto owners must build both hot and cold wallets to secure the assets. Minimal amounts of crypto coins required for instant transactions alone must be stored in hot wallets like mobile or web apps. The remaining bulk amount of crypto coins can be stored in cold wallets with secured offline private keys.
Complex and extensive knowledge
The customized crypto wallet applications must be developed from scratch, and it must be packed with advanced features to enhance your secure trading experience. The complexity of the crypto wallet app has increased enormously, with intuitive UI, security features, front-end programming language, and much more. Hence, its mandate to build the crypto wallet app with an eminent team of blockchain experts.
Wrapping up! Crypto wallet applications must be secure, intuitive, and ergonomic for better and swift trading experience. You must choose the cryptocurrency wallet development services wisely to build the application! You can consult our team to get your quote on crypto wallet development!