Today cryptocurrency, especially Bitcoin, has come into common use, due to its usability, easy transactions, and absence of third-party integration. But how is it possible to operate this crypto? The answer is simple - you should make a Bitcoin wallet (or choose a ready-made one) - it allows making different transactions, including buying and selling the cryptocurrency. The main task of the cryptocurrency wallet is to store the secret key needed to access the Bitcoin address and, accordingly, your means.
After reading the article, you’ll find out what the best cryptocurrency wallet means, its types, and why you need it. Moreover, you’ll not only know how to make a Bitcoin wallet application, but you’ll also understand the ways to protect it and get a lot of other useful Bitcoin payment information.
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Crypto wallet software enables the users to store and transmit the cryptocurrency.
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An effective Bitcoin wallet generation requires the development of smart contracts, as its primary focus is to ensure a safe and fast data transfer between users.
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Bitcoin wallet software preserves the user’s private keys to ensure the security of the user’s transactions and identity pseudonymity.
What Is a Bitcoin Wallet?
Before proceeding to the question of how to create a btc wallet, it would be useful to understand what it is, to begin with.
The universal cryptocurrency wallet might be considered your personal channel of interaction with the Bitcoin network, just as online banking acts as a "bridge" between you and the financial system.
Bitcoin wallets contain private keys: secret codes which allow you to spend Bitcoins. In fact, you need to store and protect not the bitcoins themselves, but these private digital keys that provide both access to public Bitcoins, and the ability to conduct transactions.
In short, a Bitcoin wallet is an application, site, or device that:
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contains private keys for your Bitcoins;
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helps to conduct all kinds of transactions of getting or transferring Bitcoins;
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allows checking the data about your cryptocurrency balance.
And, of course, such wallets are rather different, depending on the device with which they are going to work. You might be interested in the effective crypto wallet apps, so in the linked article we discuss 7 efficient examples.
We should discuss the issue in more detail before considering the future of mobile wallets and how to create one of them.
Want to know how to develop a powerful financial application? Read our article with all the details!
Types of Bitcoin Wallets
Bitcoin wallets are divided into desktop, mobile, online, and hardware ones. They are available on almost all popular operating systems - Windows, Linux, OS X, Android, iOS, Windows Phone… However, let's look at the matter point by point!
Desktop Bitcoin Wallets
The desktop type of wallet has appeared simultaneously with Bitcoins. The desktop wallet was created by Satoshi Nakamoto himself. There are two types of Bitcoin PC-focused clients: "thick" and "thin". Thick ones download the entire blockchain, which means you need a lot of storage space on a fairly powerful PC. Thin wallet deals with the blockchain through third-party services. It makes the whole process much easier, of course.
An Internet (Online) Cryptocurrency Wallet
This type of crypto wallet is a virtual resource that you can connect to anywhere by using a private key (if there is an Internet connection). It would be useful in cases when you aren't on your computer, but need urgent access to your Bitcoin account.
Mobile Wallets
Mobile wallets are sources that you can run on your smartphone or tablet. This Bitcoin wallet aims to protect your private keys, enabling you to perform actions like sending and receiving digital assets.
Bitcoin Hardware Wallets
These wallet types are specialized tech devices with private keys stored electronically. The key emphasis of this Bitcoin wallet type is “cold” storage that is ready for utilization if the client wants to perform specific crypto operations.
Paper Bitcoin Wallets
Paper Bitcoin wallet is a printed document that contains two keys: public and private. You can generate and print a Bitcoin paper wallet at bitaddress.org. The main disadvantage is that if you lose your wallet, you won’t be able to restore access to your funds.
To sum it up: different types of mobile wallets are the most convenient option. And the Bitcoin wallet iOS/Android app is exactly what you should create.
Reasons of Bitcoin Wallet Development:
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Desktop wallets are really good if you need to store Bitcoins, but they are not very useful if, say, you're trying to make a purchase in real (not virtual!) store (therefore, you're out of the house). This is the very place where the mobile wallet would come in handy. Once installed as an application on a smartphone, your wallet can store private keys for your Bitcoin addresses. So, it allows you to buy different things directly from your device.
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These wallets are safer than Internet ones: it is enough to monitor your mobile device, and the secret code will remain unknown. And if you’re dealing with an Internet wallet, much depends on whether the site is hacked, etc.
Mobile wallets are developed with the help of simplified payment verification. Thus, only a small part of the blockchains are being downloaded, and the authenticity of the sent funds takes place on the other trusted Bitcoin network node.
So, it's time to figure out the issue of how to make a Bitcoin wallet app. But first... what features should it have in order to be able to satisfy all your requests and needs?
Key Features of the Bitcoin Cryptocurrency Wallets
So, you want to build your own Bitcoin wallet. Let's analyze its possible functionality.
Registration System
Of course, any cryptocurrency wallet app should provide the opportunity to authorize, so the sign-in feature belongs to the mandatory and unconditional ones.
Profile Generation
As with any other application, the profile developed contains all the necessary personal information which can be used to manage Bitcoin payments. Additionally, the Bitcoin wallet app contains a string of alphanumeric characters, which makes the user’s profile pseudonymous in crypto operations.
Bitcoin Trade
The feature is aimed at selling or buying Bitcoins, it helps you keep up on the matter so that you always know the sellers of this cryptocurrency and can become one of them.
Real-Time Payment Tracking
All best Bitcoin wallet apps provide users with the possibility to track their payment transactions in a real-time mode.
Push Notifications
The feature helps the user stay informed: let’s say, receive information about transactions. Additionally, these notifications inform users of the alerts of suspicious activities and threats.
Security
Setting a password and PIN to protect the application. Additionally, Bitcoin wallet apps are operated on the blockchain systems, which are tamper-proof, as to manipulate the wallet, a hacker has to alter the blocks. Blocks alteration requires modification in hash functions, which will require the hash change in the previous blocks. Wanna know why? Just read the linked article.
Of course, Bitcoin app development is not the only difficulty that you should think about. It is also important to study the security problem.
Step-by-Step Guide to Creating a Bitcoin Wallet
After analyzing the essence, features, and types, it’s time to analyze the steps of Bitcoin wallet setup.
1. Market Analysis
During this step, it is important to define the key players in the niche of crypto wallets, their core features, advantages, disadvantages, and elements that make them attractive to their target audience. After that, you should reinforce your idea by defining the overall features the application is going to have.
2. Wireframe Design
As an indispensable part of UX/UI, wireframe design is an essential step for making a btc wallet as its primary focus is to show user flow and app layout based on the visual prototype. This prototype does not require any code, by enabling the internal improvements in the concept.
3. MVP Development
MVP development implies the starting realization of the ideas into practice. Although this step is optional, Minimal Viable Product (MVP) represents a preliminary version of application, which incorporates the basic functions of the Bitcoin wallet, like registration or application management.
4. Smart Contract Development
Smart contract development is one of the top moments in Bitcoin wallet app development, as it will ensure the further execution of the transaction processes. The sub-process of smart contract crafting includes building its architecture to align with the wallet’s initial requirements, writing code, testing the contract on different blockchain networks to analyze its tech effectiveness, alignment with security protocols, and compliance with the overall blockchain standards.
5. Back-End & Front-End Development
The next step includes crafting a development environment, incorporating tools like Visual Studio Code, Eclipse, and blockchain node environments, like Bitcoin or Ethereum.
The next essential moment is taking into account the blockchain protocol and development language, as these elements will directly affect your choice of a framework for crypto wallet development. Bitcoinj and Web3j (relevant to Ethereum) are the key examples of the cryptocurrency wallet development framework.
6. Testing
Testing phase is a must, as it checks how the wallet app functions under peak loads, whether its’ functionalities align with the ones discussed during the market research, analyze its compliance with security measures, and evaluates the correctness of the UX/UI design, and whether the software functions in a smooth manner.
7. Launch & Maintenance
When all the testing procedures are done, the development team uploads the application to Google Play or App Store and collects the users’ feedback. Then, the experts maintain the wallet and elaborate on its new versions.
Key Libraries for Bitcoin Wallet Development
Bitcoin has an open-source code; its architecture is known all over the world, no one owns or controls Bitcoin, but everyone can become a member of the network. Therefore, Bitcoin wallet app development is not as difficult as one might think.
If you want to tailor your own sophisticated Bitcoin wallet, there are a variety of free libraries at your service, and all of them are aimed to simplify the development task. These libraries can help you synchronize the wallet with the blockchain and make the transaction process much easier.
Alas, it’s impossible to analyze each of the existing libraries within the compass of our article, but we suggest considering the pros and cons of the most popular ones.
#1. Coinbase SDK
Coinbase SDK is a cross-platform Java library that can be used to create a Bitcoin wallet app for Android and iPhone. Also, the library supports such languages as Python, Java, Ruby, and others of the sort.
Unfortunately, Coinbase SDK requires registration. However, once this stage has been completed, you gain access to such opportunities as:
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buying and selling Bitcoins for other currencies;
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transaction management;
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implementation of cryptocurrency payments.
Sadly, you should be warned: not all Coinbase SDK features are available everywhere, in every country. But still, the library is rather convenient and, among other things, gives you a chance to deal with different cryptocurrencies (such as Litecoin).
#2. BitcoinJ SDK
BitcoinJ is a cross-platform Bitcoin library that can come in handy when needed to work with Windows and Android platforms, it is easy to use and has detailed documentation.
BitcoinJ advantages:
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a possibility to interact with the main (and official) Bitcoin test network (TestNet3), which is a big advantage for developers;
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access to MainNet, the basic Bitcoin transaction network;
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no need to register.
BitcoinJ will be an excellent choice if you want to know how to make a Bitcoin wallet app without any trouble. Why? Because this library offers the extended functionality that provides the possibility to…
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create new wallets with a password encryption system;
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work with existing wallets;
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send and get Bitcoins;
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control the balance;
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receive data on the success of the transaction;
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configure the transaction confirmation process.
Although BitcoinJ is written in Java, JVM-compatible languages also allow working with it (such as C ++, JavaScript, Ruby, and Python).
How to Protect Your Cryptocurrency Wallet?
Are mobile wallets safe? The question is worthy, and you're absolutely right in asking it. Naturally, you must be very careful in managing and storing your Bitcoins. But don’t worry, it's not as difficult as it seems to be. While you are following these simple rules, you can be sure your Bitcoins are safe.
Encryption
The wallet can be encrypted with a strong password - this makes it difficult to crack a PC or mobile device, although it does not give 100% protection.
Backup
Another way to protect your mobile or online cryptocurrency wallet is to create its backup in several places.
Multi-Signature
We’ve already talked about the fact that multi-signature is the advantage of Bitcoin payments. Among other things, such a feature increases the level of security of the service, allowing several users to partially sign one address with a public key. If someone wants to spend Bitcoins, he should receive 2-3 signatures to make the transaction. The number of required signatures should be set in advance when creating an address.
Additional Tips:
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Use unique, long passwords when creating a Bitcoin account.
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Take advantage of Bitcoin services that require 2-step verification (such as SMS confirmations or mobile applications - the same Google Authenticator).
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If you’re using a mobile wallet, be sure to lock the phone with a password.
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Store only a small amount of Bitcoins in your mobile phone wallet or on the Internet. Your main amount of Bitcoins should always be stored offline, away from potential hackers.
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Update all software on your computer and other devices.
These simple steps will help you to protect yourself.
How to Integrate Bitcoin Payments Into Apps?
If your business doesn’t need a complex multifunctional solution, there is no need to build your own Bitcoin wallet app. In such a case, you can use one of the ready-made services allowing you to make Bitcoins payments. By the way, a lot of prominent companies, including Amazon, have gone this way.
So, a very simple option is to integrate payments into your application. Fortunately, there are a lot of technologies of the sort. One of them will definitely meet your payment needs. Let’s see…
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BitPOS offers a very convenient payment technology for virtual (web and mobile) and actual (meaning, real, physical) points-of-purchase.
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BitPay helps to manage Bitcoin payments via mobile technologies.
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Coinbase, an excellent solution for constant USD payments. The advantage of the system is a convenient navigation system. Among others, it includes buttons, which simplify the process of making payments.
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Coinify gives you the ability to manage web and mobile payments in Bitcoins and offers many useful and interesting features.
Customizing these services, you can easily manage your transactions, make Bitcoin payments, exchange the cryptocurrency for actual money, etc.
However, these technologies will be useful only to solve small, narrowly focused business tasks. If you have a big branched company and, in addition, plan to make money on exchange operations with Bitcoins, you’ll have to get a more personalized cryptocurrency wallet that fully meets your specific requirements and needs. So you had better hire an expert company. Professionals not only know how to build a Bitcoin wallet from scratch, but they also have huge experience in this area and can give you a few qualified tips.
Consider Agilie's Expertise in Bitcoin App Development
When it comes to creating a Bitcoin wallet application, you might be interested in the major services, which will be required for producing a decent product.
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UX/UI designers who should create the most convenient and understandable cryptocurrency wallet interface;
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Mobile and backend developers responsible for the operation of the application itself;
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QA engineers whose task is to test the final application and make sure it is error-free.
Prior to developing a Bitcoin wallet development, you will have to hire a reliable partner who will be cost-effective, deadline-compliant, and quality/result-oriented. But how to determine what company is reliable? In the image below, we share insights on what factors to consider when choosing a truly reliable development partner.
Agilie is a European IT outsourcing company, which for over 14+ years provides its custom-tailored and result-oriented solutions for multiple industries like fintech, real estate, ecommerce, marketing, healthcare, etc. The domains where we proved our reliability are blockchain development, payment/mobile solutions, and fintech.
We’re ready to offer you our professional crafting of a Bitcoin-relevant wallet application. Agilie experts know how to create a Bitcoin wallet app of any complexity, so we would be happy to undertake your task.
Agilie Case: Chameleon Pay
Chameleon Pay is Agilie’s from-scratch-created multi-digital wallet. Our development team ensured the application’s support of multiple cryptocurrencies, including, but not limited to, Bitcoin, Ethereum, Litecoin, zCash, etc. The key difficulty in the project development was based on support of multiple currencies. Unlike the basic Bitcoin wallet, which has its unique data structure and key creation, the multi-currency variant had to integrate those data into a single interface. For this purpose, our solution was the universification of the blockchain network.
When It Comes to Cryptocurrency Wallet Development, We Offer:
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Direct Conversion. Exchange Bitcoin to the currency you need and vice versa in a few taps.
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Storage of Bitcoins on the device.
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Material Design. We’ll make a Bitcoin wallet app with an appealing and clear design. Our Material Design provides the service with an intuitive interface and ease of use. It means your cryptocurrency wallet will be:
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sophisticated
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transparent
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functional
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Security. Generation of key data occurs on the device itself. To get additional protection, the user is asked to set a password to encrypt the main secret code before storing it in the database. However, it entails an increase in the expenditure of time and energy.
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Simple Recovery. Use the mnemonic phrase to restore your cryptocurrency wallet to any other device.
Conclusion
In the article, we discussed how to make btc wallet, its product development specificity, features, and libraries. If you are interested in developing a mobile application of any type, our services would be useful all the more. Having vast experience, we’ll create for you a high-grade application and integrate into it a payment system you consider convenient.
