Investing in Cryptocurrency Wallet Development in 2024: Cost and Benefits

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Key Takeaways

• Cryptocurrency wallet development can be profitable due to the increasing adoption of cryptocurrencies, which creates a rising demand for secure and user-friendly wallet solutions.
• The cryptocurrency market is expected to grow from $2.49 billion in 2024 to $4.59 billion in 2028, with a CAGR of 16.5%.
• A custom crypto wallet presents opportunities for monetization through app sales, transaction fees, and value-added services.
• A Forbes Advisor survey found that 42% of respondents invest in cryptocurrency because apps make it easier to get started.

Blockchain technology’s rapid development has led major financial organizations to invest heavily in its benefits. Startups, enterprises, and even Fortune 500 companies are now deeply involved, and the demand for secure transactions has turned cryptocurrency wallet development into a booming industry.

With a promising future for crypto trading and the ever-expanding fintech landscape, now is an ideal time to invest in developing a user-friendly crypto product. Through years of providing consultations and fintech software development services, Acropolium has harnessed the power of blockchain and SaaS technology.

Today, we will explain to you how to create a crypto wallet app with must-have features to elevate your operation. We will also explore some of our clients’ related success stories and try to estimate the crypto wallet development cost.

What are Cryptocurrency Wallet Apps?

A cryptocurrency wallet app is a software designed to manage and transfer crypto assets. Unlike regular digital wallets, it holds the keys to coins stored on public blockchain networks, not the coins themselves.

These apps serve as digital mediators, allowing users to store their public and private keys and track their cryptocurrency balance in one place. When stablecoins, NFTs, or other crypto assets are transferred to the wallet, ownership is assigned to the wallet’s address.

Cryptographic keys are crucial for verifying user addresses and performing transactions, making security a top priority in crypto wallet development, fintech SaaS solutions, and crypto exchange software.

Global Cryptocurrency Market

As the global cryptocurrency market grows, so does the need for cutting-edge software for digital coin management. According to a Forbes Advisor survey, 42% of respondents said they invest in cryptocurrency because using an app makes it easier to start investing.

The cryptocurrency market is projected to expand from $2.49 billion in 2024 to $4.59 billion in 2028, growing at a CAGR of 16.5%. This growth is expected to be driven by increased transparency in financial transactions and digital accounting operations.

Types of Crypto Wallets App

The diversity of cryptocurrency wallet development services allows you to build a unique, scalable product that will resonate with your target user. Depending on users’ intentions with crypto, you can introduce various crypto wallets to the market.

For instance, long-term investors who plan to hold their assets for an extended period may prefer wallets with robust security features. Conversely, active traders might prioritize convenience and speed.

Crypto wallets are categorized as cold, hot, and warm based on internet connectivity.

Hot Wallets

Hot wallets, which are software-based, offer enhanced user-friendliness but exhibit slightly lower security compared to cold wallets.

Accessing a hot wallet involves downloading a software program onto the user’s device. Various types of hot wallets exist, as outlined below:

• Desktop wallets are utilized via desktop computers or laptops, accessible from their original installation device, offering security except in cases of computer virus attacks.
• Mobile wallets share features with desktop versions but simplify payments in physical stores through QR code scanning and NFC technology.
• Web wallets provide easy cryptocurrency access from any browser or mobile device, operating on the cloud for convenience with online storage of private keys. The keys are stored online and can be utilized by connecting to BaaS platforms. However, the cloud can also be prone to cyberattacks, so make sure to cooperate with a certified cryptocurrency development company.

Cold Wallets

These are hardware wallets that store your keys offline on a device that isn’t connected to the Internet. Many in-demand cold storage wallet form factors resemble USB drives. Sometimes, they come as paper wallets printed with information about your public and private keys on a sheet of paper.

Many crypto followers consider cold storage the best option for protecting digital assets. Since they’re offline, these wallets are considered hard to hack. Still, they can be easily lost or misplaced, and that’s why others consider digital cryptocurrency wallet development.

Warm Wallets

Warm wallets blend the transaction swiftness of hot wallets with an added layer of security akin to cold wallets. While keys are stored online and transactions can be automatically generated, human intervention is required to sign and send transactions to the blockchain.

Different digital asset institutions have varying priorities when it comes to attributes. For instance, a crypto business engaged in frequent trading might prioritize the speed offered by a hot wallet, whereas an investor aiming for long-term asset holding may prioritize the security provided by a cold wallet above all else.

Basic Features Required in Crypto Wallet Development

Your cryptocurrency wallet app should integrate enhanced functionality tailored to your business logic requirements. Before contacting a cryptocurrency wallet app development company, there are the key features to consider for your product’s future functionality:

Enhanced User Authentication

This crucial feature restricts wallet access to authorized users, meeting essential crypto compliance standards like AML and KYC. Implemented through secure login credentials, biometrics, or multifactor authentication (MFA), it safeguards wallets from unauthorized access.

QR Code Scanning

Simplify cryptocurrency transactions by enabling users to scan QR codes to input wallet addresses, conduct transactions, or log into their wallets across various devices. This ML-based integration offers ease of use and accessibility with established libraries and APIs for developers.

Multi-Currency Support

Offering support for multiple cryptocurrencies enhances the versatility and functionality of your digital wallet app, providing users with a competitive advantage. It allows for portfolio diversification, catering to diverse customer preferences and business needs.

Secure Blockchain Transactions

When planning crypto wallet app development, prioritize transaction security by encrypting sensitive data, verifying user accounts and signatures, and integrating blockchain security protocols.

At this point, you are more likely to focus on custom software rather than multi-tenant platforms with shared infrastructure. These measures ensure the safety of on-chain transactions and financial operations.

Payment Gateway Integration

Enable seamless payments directly from crypto wallets through integrated payment processors or gateways. These crypto-based technologies simplify transactions while maintaining security standards like traditional payment processor gateways.

Streamlined Address Management

Efficient address management functionality simplifies tracking and identification of wallet addresses for crypto users. Your cryptocurrency software development company should ensure a user-friendly design alongside technical aspects to optimize the address management experience.

Paper Wallet Integration

Allow users to import funds between physical paper wallets and digital crypto wallets, ensuring careful handling of sensitive user and financial data. Like crypto exchange security, paper wallet integration requires meticulous attention to safeguard user information.

Automated Session Logout

Add an extra layer of security with automatic session logout, ensuring app safety and restricted access to authorized users only. This feature enhances the overall security of in-app processes and cryptocurrency operations.

Why Should You Invest in Crypto Wallet Apps?

The need for cryptocurrency wallets has grown as more people invest in cryptocurrency. In fact, the Forbes Advisor’s survey states that 57% of cryptocurrency investors reported making profits from their investments.

Let’s look at some of the reasons for the relevance of cryptocurrency wallet development:

Reduced Transaction Costs

Cryptocurrency transactions typically incur lower fees compared to traditional payment methods. This can potentially contribute to cost savings for businesses, particularly for international transactions.

Access to Blockchain Technology

Investing in crypto wallet app development provides businesses with access to blockchain technology, which has various potential applications beyond cryptocurrency. It can also apply to supply chain management, identity verification, and decentralized finance (DeFi).

Competitive Advantage

A tailor-made crypto wallet can differentiate businesses from competitors and position them as innovative leaders in their industry. A secure and user-friendly wallet solution can attract customers seeking reliable cryptocurrency services.

Diversification of Services

Integrating a crypto wallet app into existing services or products can diversify business offerings and cater to the evolving needs of customers. It enables businesses to adjust to market shifts, trends and consumer preferences.

Enhanced Customer Engagement

Providing a crypto wallet app allows businesses to engage with tech-savvy customers actively involved in the cryptocurrency ecosystem. Additionally, it has the potential to draw in new customers who favor digital currencies for transactions.

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

Crypto wallet development incurs costs influenced by several factors. Advanced features like multi-currency support, QR code scanning, and two-factor authentication add complexity. Costs rise with multi-platform development (iOS, Android, web) and custom, intuitive designs.

Robust security measures, such as encryption and biometrics, require significant resources. Backend infrastructure complexity, including server setup and blockchain integration, affects costs. Supporting multiple blockchains demands specialized expertise, so you should either expand your in-house team or outsource product development to a vendor.

Compliance with regulations like AML and KYC or migration to microservices adds development time. The development team’s location and expertise also impact rates, with experienced blockchain developers often costing more. Thorough testing for security and performance, along with post-launch support, updates, and maintenance, further increases overall costs.

Similar to SaaS app development, the app’s functionality complexity and blockchain developers’ hourly rates play pivotal roles in crypto wallet development cost.

Why Сhoose Acropolium?

Acropolium is an experienced blockchain development vendor with a proven track record of delivering GDPR-compliant software. Our ISO-certified processes ensure top-notch product quality, offering cutting-edge serverless solutions to enhance scalability and efficiency.

Our portfolio boasts numerous success cases where our clients achieved measurable results that contributed to smoother operations.

SaaS-based Crypto App Development

For example, our client approached Acropolium as a cryptocurrency development company to create a secure, user-friendly platform for instant trading and investment strategies. The cutting-edge crypto robo-advisor was designed for entry-level users to explore digital investments.

Solution

• Acropolium prioritized cloud optimization and diversification practices, enabling users to spread investments across various strategies and reducing exposure to individual assets.
• We provided comprehensive performance metrics, including historical returns and risk assessments, to inform decision-making.
• To enhance user satisfaction and retention, Acropolium incorporated feedback sections, surveys, and measurable feedback mechanisms.

Results

• A 250% increase in user registrations
• A 199% rise in trading volumes

Investment Asset Management Software

Our client, a financial entity providing a portfolio intelligence tool, requested legacy system modernization to make its product scalable as operations expanded.

Solution

• Our dedicated team delivered efficient wealth management software with an easily accessible dashboard to metrics, project statuses, and financial data. We implemented customizable features and real-time updates to help users make informed decisions.
• A resource allocation module developed by Acropolium now optimizes utilization and minimizes conflicts.
• The scalable architecture supports growth and future enhancements without disrupting functionality.
• With the best practices of cryptocurrency development solutions in mind, we also included robust risk assessment and mitigation features.

Results

• Enhanced project status and timeline visibility by 30%.
• Increased access to financial metrics by 25%.
• Reduced real-time portfolio monitoring time by 30%.
• Boosted workforce efficiency by 17%.
• Improved accuracy of strategic decisions by 25%.
• Proactively tackled 80% of potential risks.

Final Thoughts

As the cryptocurrency landscape evolves at lightspeed, the importance of reliable and secure wallet solutions cannot be overstated. Whether it’s for personal investment or business transactions, having a trusted cryptocurrency wallet is essential.

Acropolium is here to offer you comprehensive crypto development services with flexible, subscription-based terms of cooperation. Whether it’s a SaaS product from scratch, cloud migration or system upgrade, we provide consultations and dedicated teams precisely to your budget.

Contact us today; we will happily describe our crypto wallet development processes and explore your growth opportunities!

Sources of Information

• Cryptocurrency Global Market Report 2024 — Research and Markets
• Cryptocurrency Statistics 2023-2024 — Forbes Advisor Survey