Thursday, September 8, 2022

How Much Does It Cost to Make A Crypto Wallet App on Blockchain?

Due to the vast technological development, practically all financial business verticals are putting their resources in Blockchain.

Lately, we can see the huge development of Blockchain technology and its applications. Thus, with this many new businesses and entrepreneurs have begun to invest in Blockchain technology.

As almost all cryptocurrencies are totally based on Blockchain, hence, there is an enormous demand for crypto wallet app development.

In all our previous cost-related articles, we have provided a ballpark figure of cost for the likes of already established apps like WhatsApp, Uber, etc.

In this particular article, though, we will try to cover a technology that has not fully taken off yet and is the one that can create a real revolution when it does – Cryptocurrency/Bitcoin Wallet Application.

However, getting down to what the development entails and how much would development of cryptocurrency wallet cost, it is very important to brush your basics on what Cryptocurrencies are and how to build a crypto wallet.

What are Cryptocurrencies?

Cryptocurrencies are decentralized digital money, based on blockchain technology. There is no central authority that manages and maintains the value of a cryptocurrency.

Instead, these tasks are broadly distributed among a cryptocurrency’s users via the internet. Blockchain technology is central to cryptocurrencies as it allows transactions to be processed and authenticated without any central authority. 

What are Cryptocurrency Wallets?

Cryptocurrencies need a place to be stored and transacted from. This is why we need a cryptocurrency wallet.

It is a digital wallet that keeps your private keys – passwords that give you access to your cryptocurrencies – safe and accessible, allowing you to send and receive cryptocurrencies like Bitcoin.

These keys prove your ownership of your digital money and allow you to make transactions.

Growing alongside the rising number of cryptocurrency traders and enthusiasts is the number of cryptocurrency wallets to save the users’ money in. This rise in cryptocurrency wallet development services through a blockchain development firm has predictably brought an increase in the number of Blockchain wallet app users globally, according to Statista.

The graph  given below shows the number of Blockchain wallet users worldwide from November 2011 to October 2021.

According to a report by Statista, the number of Blockchain wallet users have reached over 70 million wallet users in 2021. This statistically backed rise in demand for cryptocurrency wallets has directly resulted in Fintech enthused businesses to add Cryptocurrency Wallets as a part of their revenue and business model.

Before we move on to the features, tech stack, and developmental challenges (and solutions) that would come together to form an answered price range of the question ‘How much does it cost to develop crypto wallet app’ or ‘how to develop crypto wallet’, let us take a quick detour to look at the cost and different types of wallets available in the market today.

What are the Different Types of Crypto Wallets?

Web wallets:

Web wallets can be accessed through a web browser. For such wallets, you don’t have to download any specialized software on your computer or phone. With a web wallet, the website often holds the key to your crypto. This gives you a little less control over your cryptocurrency.

Mobile wallets:

These types of wallets can be downloaded and installed on mobile phones. They often come with QR codes so you can buy and sell crypto more easily. However, mobile wallets require additional security measures as they are vulnerable to malicious apps and viruses. So, it’s recommended that you encrypt your mobile wallet with a password and backup your private keys in case your smartphone gets lost or broken.

Desktop wallets:

A desktop wallet is software that you download and execute locally on your computer. Unlike some web-based versions, desktop wallets give you full control over your keys and funds. However, you need to follow the basic security measures such as antivirus and anti-malware software and a strong firewall.

Hardware wallets:

Hardware wallets are designed to protect your private keys from online methods of storage, such as on computers and phones, which can be accessed by a hacker. Keys are stored in a thumb drive device that is kept in a safe place and only connected to a computer when you want to use your crypto.

Paper wallets:

It is a piece of paper on which a crypto address and its private key are physically printed out in the form of QR codes. These codes can then be scanned to execute cryptocurrency transactions.

When we talk about the different crypto wallets, the type that leads the category in terms of popularity is Mobile Wallet Apps. These apps run on the users’ phones through the app and allow them to not just store the digital currency but also transact money between other users or use them to make payments in the stores.

How Much Does it Cost to Develop a Crypto/Bitcoin Wallet App?

Noting all the functionalities, tech stack, and the hours of resources that would go into the feature-rich Bitcoin applications development, we have made a chart of the blockchain wallet development cost estimate that you would have to pay to get your apps like Bitcoin wallet developed.

Blockchain application development cost when looking specifically at the Bitcoin wallet application segment, ranges from somewhere around $85k to 95k, depending upon the features’ list that you wish to add in your app.