{"id":7878,"date":"2021-12-14T11:26:57","date_gmt":"2021-12-14T11:26:57","guid":{"rendered":"https:\/\/cheesecakelabs.com\/blog\/?p=7878\/"},"modified":"2022-09-01T16:59:25","modified_gmt":"2022-09-01T16:59:25","slug":"cryptocurrency-wallet-development","status":"publish","type":"post","link":"https:\/\/cheesecakelabs.com\/blog\/cryptocurrency-wallet-development\/","title":{"rendered":"Cryptocurrency wallet development: the 6 most important aspects"},"content":{"rendered":"

In 2017, cryptocurrencies exploded into the mainstream. Around the world, millions of people began investing in digital coins all at once. This leap in popularity for an emerging tech was made possible by immense hype and by underlying technologies. The cryptocurrency wallet, which began development in 2012, was one of the primary technologies that allowed this vast expansion.<\/span><\/p>\n

Today, cryptocurrency wallets come in all shapes and sizes. Businesses and startups are looking for ways to invest and capitalize on this new currency movement. <\/span><\/p>\n

With that in mind, let\u2019s talk about how you can enter the cryptocurrency market with your own wallet. <\/span><\/p>\n

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What is a cryptocurrency wallet?<\/b><\/h2>\n

First, the basics: what is a cryptocurrency wallet?<\/span><\/p>\n

A cryptocurrency wallet is more or less a bank account for your cryptocurrency.<\/b> It tells you how much cryptocurrency you own, what it\u2019s worth in various currencies, and makes it easy to send, receive, and exchange crypto. <\/span><\/p>\n

One thing to note, though, is that a cryptocurrency wallet doesn\u2019t <\/span>store<\/span><\/i> your cryptocurrency. Technically, all cryptocurrency is stored in a blockchain<\/a>, a ledger that keeps track of every coin in a particular type of cryptocurrency. <\/span><\/p>\n

In this way, crypto wallets really are like bank accounts. When your bank account says that you have $1,000, it doesn\u2019t mean that $1,000 is sitting in an account with your name on it. It means that your bank has $1,000,000, and $1,000 of that money belongs to you. Your account allows you to manage and use that money, but it\u2019s just an interface for interacting with it \u2014 it isn\u2019t actually holding that money. <\/span><\/p>\n

The same concept applies to cryptocurrency wallets. They store the information that confirms you own cryptocurrency, just like an account. Information about <\/span>how much<\/span><\/i> cryptocurrency you own is stored in the blockchain, and the blockchain integrates with your wallet. Like a bank!<\/span><\/p>\n

Also like a bank, you can lose your cryptocurrency if you lose track of your account information. If someone steals the data that confirms your crypto belongs to you, then they can claim it as their own. Since crypto isn\u2019t as established as banks are (by design, notably), keeping your crypto safe largely falls to cryptocurrency wallets. <\/span><\/p>\n

There aren\u2019t necessarily any defining characteristics of a cryptocurrency wallet other than that it stores the information that confirms your crypto belongs to you. You could technically write that information on a piece of paper, and that piece of paper would serve as your wallet (just don\u2019t lose it!)<\/span><\/p>\n

While keeping your crypto on a piece of paper is arguably one of the most secure ways to store it, the paper approach lacks features. It can only \u201creceive\u201d cryptocurrency and store it. So those wanting to venture into cryptocurrency wallet development will need to:<\/span><\/p>\n