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
First of all, you must understand your business model and other specific needs to choose a suitable crypto wallet. Each type will have distinct functions, technologies, and security measures to match with the crypto wallet. Consider the three wallets below to find which one is the best suited for you:
Hot Wallets (Software Wallets)
These wallets are connected to the internet, making them ideal for frequent transactions or active trading. Hot wallets are very friendly to users and easy to access, but often vulnerable to online attacks.
Cold Wallets (Hardware Wallets)
These wallets store cryptocurrency offline on physical devices. Since they are not connected to the internet, they offer superior security and are less prone to hacking. However, they may be less convenient for quick transactions.
Hybrid Wallets
A balance of hot and cold wallets, hybrid wallets store most funds offline for security while keeping a smaller portion online to ensure easy access. This option balances convenience and safety.
If your platform will handle frequent transactions or micro-payments, hot wallets can be the ideal solution. On the other hand, if your business caters to investors looking to secure their assets long-term, cold wallets can be the way to go. For business aims to offer a balanced solution for both frequent transactions and secure long-term storage, a hybrid wallet can be the perfect choice.
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.
The tech stack can only maximize its potential when it’s aligned with your team’s expertise and the intended function of the wallet.
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 and Deploy
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 cryptocurrency libraries
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.
Leveraging these libraries ensures reliable functionality and allows developers to focus on building unique features instead of starting from scratch.
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.
By using APIs, developers can quickly build feature-rich wallets while ensuring a smooth user experience.
3. Harness cloud technology for scalability
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.
This keeps users satisfied and encourages them to use your wallet on any device.
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.
Staying compliant not only protects the business but also builds user confidence.
6. Focus on integration
Integrating wallets with platforms like exchanges or e-commerce sites expands functionality. Choose the right wallet type (e.g., hot, cold, or software wallets) and integration method (API, SDK, or plugins).
Key considerations for how to create a wallet for cryptocurrency include:
- Security: Protect users with encryption and two-factor authentication.
- User Experience: Make the integration easy and user-friendly.
Proper integration ensures a reliable and enjoyable experience for end-users.
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 as your crypto wallet development partner
When it comes to opening crypto wallet, Synodus stands out as a reliable partner. With proven experience and successful case studies through many cryptocurrency wallet projects, we are experts in how to create a crypto wallet. Our portfolio includes popular solutions such as Hola Pay, DeFi for You, NFT marketplaces, and more. Notably, our Hola Pay wallet reached an impressive 3 million users in just four months. This demonstrates our ability to create scalable and user-friendly crypto wallets.
We specialize in building a wide range of wallets tailored to different needs. Our services include:
- Bitcoin wallets development
- DeFi wallets development
- Tokenized asset wallets development
- NFT wallets development
- DApp wallets development
- Ethereum wallets development
- Web3 wallets development
- White-label crypto wallets development
We are committed to offering top-level security for your wallet, while also ensuring that our solutions meet legal regulations, so you can feel confident operating in the crypto space.
What sets Synodus apart in crypto wallet development?
Packaged solutions & White-label services
A key advantage of working with Synodus is our use of packaged solutions and white-label products. These pre-built solutions allow us to launch wallets faster and at a lower cost. This is especially helpful for startups that want to save time and money. For example, our Funding Kickstart Packages include everything a startup needs, such as:
- Competitor research to understand the market
- Moodboard creation to visualize the design direction
- Basic UX concept design to shape the user experience
- Clickable prototype to test ideas quickly
These services speed up development while ensuring high-quality results. This way, you get a wallet tailored to your business needs and ready to use.
Lean startup methodology
For startups, time and money are always a concern. That’s why we follow the Lean Startup methodology to ensure efficiency throughout the development process. This approach focuses on:
- Identifying customer pain points to build a solution that addresses real user needs
- Launching a custom MVP (Minimum Viable Product) as soon as possible to begin gathering data and feedback
- Analyzing user behavior to refine the product and improve its effectiveness
By using the Lean Startup approach, we help startups save money and resources. It ensures they develop a product that truly resonates with users. This method allows for quick iterations and improvements. It reduces the risk of spending too much on features that don’t work.
Affordable development costs
Synodus offers very competitive rates for opening crypto wallet. Our hourly rate ranges from $16 to $30. This is much lower than many other companies, whose rates can range from $25 to $149 per hour. These rates are based on the Goodfirm ranking list.
Fast MVP development & expert team
We understand the importance of launching your product quickly. That’s why our rapid MVP development process ensures that your wallet can be up and running in no time. From UI/UX design to development and testing, our team can handle every step with care and expertise.
When choosing Synodus as your crypto wallet setup partner, you’re investing in a team that truly cares about your success. We bring experience, affordable pricing, and a fast, efficient development process. We’re not just a partners, we’re your support system, here every step of the way.
You can see our case studies by viewing our portfolio here. This will give you a clear idea of the quality and impact we bring to each project.
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.
