This guide is here to help. We’ll break down the 7 key steps to build a crypto wallet, highlight important considerations during the process, provide an estimate of development cost, and introduce an outstanding crypto wallet vendor who can turn your ideas into reality.
Let’s dive in.
Why should you invest in crypto wallet development?
In 2023, the global crypto wallet market was worth about USD 10,265.9 million and is expected to reach USD 48, 273.0 million by 2030, with CAGR of 24,8%. A key factor fueling this growth is the increasing adoption of cryptocurrencies as a legal asset class.
As of 2024, 450 million people globally used crypto wallets, with adoption growing steadily at an annual rate of 11.8% since 2019. Many businesses are capitalizing on this trend by investing in crypto wallet development, and you should too.
Investing in crypto wallet development helps you:
- Drive revenue growth thanks to transaction fees, premium features, in-app crypto swaps or advertising.
- Create a distinct brand identity, increase customer loyalty and retain users over the long term.
- Stay competitive and lay a foundation for future growth in the blockchain market.
For example, MetaMask, a leading non-custodial wallet, made over $200 million in transaction fees in 2021 through its token-swapping feature alone. This highlights how wallets can drive income by offering convenient, user-focused services.
With these benefits in mind, the opportunities for businesses are clear. Next, we’ll walk you through 7 steps to create a functional crypto wallet.
Get to know crypto wallets: The ultimate crypto wallet guide for cryptocurrency startups
7 basic steps to create a crypto wallet
Step 1: Choose the right type of crypto wallet
Before building a custom crypto wallet, you must decide on the right type based on security, accessibility, and user control. Here’s a breakdown of the main types:
Hot vs. Cold wallets
- Hot wallets (Online & Connected) – Ideal for frequent transactions but more vulnerable to hacks (e.g., MetaMask, Trust Wallet).
- Cold Wallets (Offline & Secure) – Best for long-term storage with high security (e.g., Ledger, Trezor).
Custodial vs. Non-Custodial wallets
- Custodial wallets – Private keys are managed by a third party (e.g., exchange wallets).
- Non-Custodial wallets – Users have full control over private keys (e.g., self-hosted wallets).
Single-Chain vs. Multi-Chain wallets
- Single-Chain – Supports only one blockchain (e.g., Bitcoin Core Wallet).
- Multi-Chain – Compatible with multiple blockchains (e.g., Trust Wallet, Exodus).
Web, Mobile, or Desktop Wallets
- Web Wallets – Easy access via browser but prone to phishing attacks.
- Mobile Wallets – Convenient and supports QR payments (best for DeFi & NFT transactions).
- Desktop Wallets – More secure but less portable.
How to choose the right one?
- Security needs – Does your business require offline storage or 2FA authentication?
- User experience – Will customers need instant access via mobile or prefer high security?
- Blockchain & Features – Will you support multiple blockchains, staking, or DeFi integration?
Step 2: Define core features
Once you’ve chosen the wallet type, decide on its core features. These features will define the structure of the crypto wallets, making it more user-friendly and functional. Here are the most important features in a crypto wallet:
- Private key management: Stores private keys for access to digital assets. Protects assets with encryption and backup options.
- Multi-currency support: Integrates various cryptocurrencies keeps your wallet stay competitive in the crypto wallet market and helps users diversify their investment portfolio. Exodus is a prime example of a crypto wallet support for over 260 cryptocurrencies.
- QR code scanning: Simplifies transactions via quick QR scans. This feature is user-friendly and helps increase users’ satisfaction when using your crypto wallet.
- Automated Logout: Logs out users automatically after inactivity. This adds an extra layer of security to protect their accounts.
- User Authentication: Ensure secure login with biometrics or 2FA (two-factor authentication).
- Secure Transactions: Improve secure transactions by encrypting sensitive data, verifying user accounts and signatures, and using blockchain-based security protocol.
- Payment Gateways integration: Allow users to make payments directly from their wallets through external payment gateways. This speeds up transactions and makes payments more convenient.
Planning these features ensures your wallet meets user expectations while staying secure and efficient.
Step 3: Choose the right blockchain platform
When opening crypto wallet, the blockchain platform you choose will determine your wallet’s capabilities and user experience. Here are some popular platforms for specific needs:
- NFT-Focused Wallets: Ethereum or Solana are ideal options as they have strong NFT ecosystems.
- DeFi Wallets: For this wallet type, choosing Ethereum is the right strategy as it offers the highest security and a mature DeFi ecosystem.
- Gaming Wallets: BNB Chain and Tron are excellent choices for their low transaction fees and gaming focus.
- General-Purpose Wallets: Ethereum’s versatility and large community make it a reliable option.
Once you’ve chosen a platform, find suitable blockchain APIs and libraries to integrate it with your wallet.
Step 4: Choose your tech stack
The next step in how to create a crypto wallet is to choose the right technology stack. It plays as a foundation for building a functional and reliable crypto wallet. Here’s a simplified guide:
- Mobile Apps: Use Kotlin for Android and Swift for iOS to ensure a smooth and robust user experience.
- Web Applications: Choose React and Node.js for modern, scalable web apps.
- Cross-Platform Development: Consider React Native or Flutter to build a wallet that works on both mobile and web platforms.
- Server-Side Development: Use Kubernetes and Docker for scalable architecture. For back-end development, choose languages like Golang or Python.
Keep in mind: the tech stack should align with the type of wallet you’re building (custodial vs non-custodial), the supported blockchains, and your team’s expertise.
Step 5: Secure your wallet
Security must be prioritized when developing a crypto wallet. The most common security risks that crypto wallets can meet are:
- Malware attacks: Malicious software, like ransomware, keyloggers, or Trojans, can steal sensitive information such as private keys. This enables unauthorized access to the wallet without users’ consent.
- Phishing attacks: Attackers trick users into revealing their private keys or login credentials by pretending to be trustworthy sources. They often create fake websites, emails, or messages to trick users into sharing sensitive information.
- MitM attacks: MitM attacks happen when attackers intercept messages between the wallet and server, allowing them to steal data or change transactions.
- Exchange attacks: Security breaches on crypto exchanges can lead to the hacking of wallets linked to these platforms, causing the loss of customer funds.
Here are the best practices to safeguard user funds and data:
- Educate users on recognizing phishing attempts.
- Use anti-phising tools and anti-malware software
- Use multi-factor authentication (MFA)
- Secure coding practices
- Use TLS/ SSL to encrypt all information
- Use strong password
- Backup data regularly
In addition, keep your wallet updated to fix any new flaws, avoid using public Wi-Fi to reduce cyber threats, and create backup options to protect your data in case of loss.
Step 6: Design a user-friendly interface
The wallet’s design should be intuitive and easy to use, especially for beginners. This is important when considering how to create a crypto wallet that is accessible to a wide range of users. Focus on:
- Easy navigation: Make it simple for users to send or receive funds quickly.
- Simple layout: Use a clean design to keep things easy to understand.
- Mobile-friendly: Ensure the wallet works well on phones, tablets, and computers.
- Customization: Let users change settings, like themes or notifications.
A good design makes the wallet easier to use and helps attract more users.
Step 7: Test, Deploy and Maintain
Before launching, thoroughly test the wallet to ensure it functions smoothly and securely. Follow these steps:
- Technical testing: Test the wallet’s features to make sure they work well. Check the performance and ensure it can handle growth as more people use it.
- Security testing: Run tests to find any weaknesses in your wallet’s security. This helps prevent hacking and protects user information.
- User feedback: Release a beta version of the wallet to a small group. Ask users for feedback on how the wallet works and use their ideas to make it better.
- Deployment: After finishing testing and adjusting to feedback, launch the ready wallet on platforms like the App Store, Google Play, or your website.
- Ongoing maintenance: Keep the wallet updated. Fix bugs, add new features, and improve security regularly.
Regular testing and updates will help ensure the wallet works smoothly and stays competitive in the market.
Things to notice when building a crypto wallet
Building a crypto wallet is not just about following basic steps, there are more factors that can impact its success and effectiveness. Let’s take a closer look at these key considerations to build a robust crypto wallet.
1. Use open-source libraries for faster development
You can save a lot of time and effort if using open-source libraries for crypto wallet setup. These libraries are extensively tested and free to use. Examples include:
- BitcoinJ SDK: A Java library that supports multiple languages like Python, Ruby, and Java. Great for Bitcoin wallets.
- Coinbase SDK: Best for cross-platform wallet development on iOS and Android. It supports popular programming languages.
2. Use APIs for integration
APIs are essential for connecting wallets to blockchain networks and third-party platforms. They simplify interactions, enabling seamless synchronization and efficient functionality. Popular APIs include:
- Coinbase API: Ideal for integrating exchange features.
- Bitcore API: Useful for blockchain exploration and wallet integration.
- SimpleSwap API: Allows cryptocurrency exchanges within the wallet.
3. Ensure scalability with cloud technology
Cloud platforms like AWS, Google Cloud, and Microsoft Azure provide efficient infrastructure. They help businesses scale and manage resources easily.
Blockchain-as-a-Service (BaaS) from these providers simplifies blockchain integration. This ensures your wallet performs smoothly even during high demand.
4. Ensure compatibility and synchronization
Ensure your crypto wallet works on all smartphones, tablets, and desktops. Synchronization between devices is essential for a seamless user experience.
Key strategies include:
- Cross-platform development: Use frameworks like Flutter or React Native to ensure wallets work on iOS, Android, and desktop platforms.
- Real-time synchronization: Use cloud solutions to instantly sync balances, settings, and transaction history across devices.
- Responsive design: Ensure the interface works well on all screen sizes.
5. Legal and regulation
Following regulations builds trust and keeps operations smooth. Key steps include:
- KYC Procedures: Verify identities to meet Know Your Customer requirements.
- AML Policies: Follow Anti-Money Laundering laws to prevent illegal activities.
- GDPR Compliance: Secure user data in line with global privacy laws.
- Tax and Licensing: Stay updated with tax requirements and renew operating licenses as needed.
6. Strengthen security & User experience
- Implement encryption & two-factor authentication (2FA) for user protection.
- Design an intuitive UI/UX to simplify wallet operations and prevent errors.
The development cost of building a crypto wallet
The cost of crypto wallet setup often ranges from $15,000 to $200,000. It depends on the wallet’s complexity, required features, and developer hourly rates. This rate varies by region – $50 to $180 per hour. More complex wallets with advanced features or customization will increase the overall cost.
Estimated costs and duration:
| Wallet type | Estimated cost | Estimated duration |
|---|---|---|
| Simple | $15,000 – $30,000 | 2 months |
| Medium complexity | $30,000 – $75,000 | 3 to 4 months |
| High complexity | $75,000 – $200,000+ | 6 months or more |
Why you should choose Synodus for crypto wallet development?
With years of experience in blockchain and fintech, Synodus is a leading crypto wallet development company trusted by startups and enterprises worldwide.
We understand the challenges of launching a crypto wallet: security risks, high development costs, compliance hurdles, and user adoption struggles. Our team of experts leverages cutting-edge technology, including blockchain, encryption, automation, and AI, to build secure, scalable, and user-friendly wallets.
We offer two development approaches:
- Packaged solutions & White-label services – A cost-effective, fast-to-market option with customization to fit your business needs.
- Custom-built crypto wallets – Designed from the ground up for maximum flexibility, scalability, and security.
A wallet we developed for our client, Hola Pay, achieved 3 million users in just four months. Our expertise ensures your wallet meets the highest standards in security, compliance, and user experience.
Compliance is key in the crypto industry. Our legal and blockchain experts ensure that your wallet meets AML, KYC, GDPR, and financial regulations in your target markets.
We guarantee a crypto wallet with:
- Multi-layer security (encryption, two-factor authentication, cold storage)
- Bitcoin, Ethereum, and multi-crypto support
- NFT & tokenized asset management
- Seamless DeFi integrations
- Web3 compatibility & DApp connectivity
- Mobile-friendly design for iOS & Android
- Custom branding for white-label solutions
Launch your crypto wallet today!
Conclusion
Building a cryptocurrency wallet isn’t just about offering a digital solution—it’s about crafting a secure, user-friendly tool that meets the evolving needs of the crypto community.
Clearly defining your business goals, selecting the right features, and prioritizing security, you can create a wallet that stands out in a competitive market.
However, success also hinges on choosing the right development partner. Selecting an experienced crypto wallet development company ensures that your project is in safe hands, from ideation to launch. With the right team, you can leverage the latest technologies, ensure scalability, and build a wallet that will adapt to the fast-paced nature of the digital currency market.
Are you ready to build a secure, innovative crypto wallet that enhances user experience? With the right planning and the right partner, you can bring your vision to life and capture a share of the growing digital currency market. Let’s make it happen.
