Cryptocurrency Wallet Development

What is a Cryptocurrency Wallet?

Many users mistakenly believe that cryptocurrencies are physically stored in their wallets. In reality, blockchain technology works differently: coins exist permanently on the blockchain after they are issued or mined. A crypto wallet does not hold the coins themselves—it acts as a secure tool for managing blockchain addresses and storing the corresponding public and private keys.

A crypto wallet is essentially a program or application that enables users to interact with the blockchain. It allows users to:

• Check balances for one or multiple cryptocurrencies

• View transaction history, including incoming and outgoing transfers

• Send and receive transfers, which means assigning ownership of cryptocurrency to another user’s blockchain address

While it may feel like a transfer in a traditional sense, cryptocurrency isn’t physically moved—it is simply re-assigned on the blockchain from one address to another.

In essence, a crypto wallet is similar to a bank account, but it’s specifically designed for digital assets. It provides users with a clear overview of their holdings, including:

• The total balance of coins

• The sources of incoming funds

• The destinations of outgoing transfers

For multi-currency wallets, additional features often include exchange rates, token swaps, and portfolio tracking, making it easier to manage several assets in one place.

Some advanced wallets also offer enhanced functionality such as integration with DeFi platforms, staking capabilities, NFT management, and cross-chain transactions. These features make crypto wallets not just a storage tool, but a central hub for managing digital assets securely and efficiently.

Ultimately, a well-designed crypto wallet provides transparency, control, and security, giving users the confidence to interact with the blockchain safely.

Types of Cryptocurrency Wallets

A crypto wallet in the form of a program, application, online service, or browser extension is considered a hot wallet because it has to be always connected to the internet. Hot wallets can be:

• Custodial or non-custodial, depending on who holds keys and controls a cryptocurrency
• Web, mobile, or desktop, depending on the platform.

A crypto wallet that doesn’t need internet connection is considered a cold wallet. It has a physical form and can be hardware or paper.

We at Polygant specialise in developing crypto wallets in the form of web and mobile apps, both custodial and non-custodial. Contact us on Telegram to discuss which type works better for you.

Custodial and Non-custodial Crypto Wallets

This is the most important difference everyone dealing with cryptocurrencies should be aware of.

As we know, all transactions in blockchain networks go between addresses that look like bizarre combinations of letters and numbers. For example, a wallet address on Ethereum may look like this: 0x763a8268712D3E015919d0097F93601B0fd4F102.

Since information about all transactions is stored in the blockchain, everyone can easily view transaction history or the balance of any address. Special services called blockchain explorers are used for that.

To send coins to someone from their address, a user needs to sign a transaction using a private key, otherwise the network will reject it. Here’s the private key to the address from the above example: 0x34229daaf8fdb3e9d3861f1af065e8a8fa7887d76e33af19e18de8e6c33cd13f.

Only someone who knows the private key can send coins from the address. And if two or more people know the key, it will be impossible to determine who performed the transaction. This is why it is critical that the private key is stored safely.

Custodial crypto wallet

This is a wallet managed by a third party, which also stores users’ private keys on its side. Many consider this wallet type insecure due to high vulnerability. But the third party can help recover access to cryptocurrencies if the user lost their password or seed phrase.

Depending on the companies that own crypto wallets, there are two types of custodial wallets:

1. Exchange-based. Such a multi-currency wallet is provided by crypto exchanges that generate public addresses and store private keys of their users.
2. Proprietary. Such a single wallet is created by private developers that store users’ keys and all the data on their own servers.

Non-custodial crypto wallet

This is a wallet that allows a user to store private keys on their device without disclosing them to any third party. This wallet type is way more reliable in terms of security. But in this case, the user is personally responsible for storing crypto keys and seed phrases. If they lose them, their cryptocurrency will be gone for good.

Crypto Wallets for Different Platforms

Now let’s look at three types of crypto wallets that have more obvious differences: web, mobile, and desktop. Each of them has its strengths, weaknesses, and risks. In the finance technology world, the more secure the solution, the more complex and restricted it is. So choose one that balances these factors and corresponds to your goals.

Web wallets

They are popular for the same reason as any web app or SaaS solution. Here are the advantages of web wallets:

• Easy to use
• Accessible on any device
• Device specs don’t matter.

Downsides: they may be less functional or less secure than other types.

If you are going to develop a web crypto wallet, don’t forget to enrich it with key features and enhance security. Otherwise the users will leave you for other crypto wallets, no matter how hard you try to retain them.

Mobile wallets

These have become the most popular amongst blockchain wallet users worldwide. Here are the advantages of mobile wallets:

• Easy to use
• Portable
• Paper wallet import
• Compatible with smartphone hardware (camera, Bluetooth, NFC).

Downsides: they may be laggy on low-cost smartphones. Malware may be distributed under the guise of a popular wallet.

If you are going to develop a mobile crypto wallet, don’t forget to optimize it and add it to all app stores from your official account. Also mention on your website, forum threads, and social media, where people can download your wallet. This way you will prevent them from getting to fraudulent websites with malicious clones of your app.

Desktop wallets

These are the most feature-rich. Just like mobile wallets, these crypto wallet apps store private keys on the user’s device (on a PC in this case). They don’t need a constant internet connection, and this is what makes them better than online wallets. Here are the advantages of desktop wallets:

• Broad functionality
• High security
• Better reliability compared to other wallet types
• Focus on tech-savvy users.

Some may find the last point disadvantageous. While digital currencies have already emerged from a narrow circle of enthusiasts and have reached the general public, an application designed for experienced blockchain wallet users may frighten newcomers away.

If you are planning to develop a desktop wallet, try to make its interface friendlier. And don’t forget to compose a helpful manual.

Hardware and Paper Crypto Wallets

A hardware wallet is a physical device that stores addresses and private keys in an encrypted form. It looks like USB flash drives or MP3 players and plugs into a PC. Most have a small display that shows the current balance, address, and key. These are all functions hardware wallets have, just because they aren’t connected to the internet. Combined with encryption, this feature makes them very secure.

A paper wallet is a sheet of paper with the printed address and private key that are often duplicated in the form of QR codes. At first they were created on generator websites, then this function appeared in desktop applications. The latter also generate public and private keys and allow printing them with QR codes.

Hardware wallets and paper wallets work better for those holding larger amounts of cryptocurrencies but rarely using them. Amongst them are long-term investors, large-scale miners, and crypto companies storing their or users’ reserves in cold wallets.

Important Functions of Crypto Wallets

Both mobile and web wallets, as well as custodial and non-custodial ones, offer the following functions:

• Showing current balance and transaction history
• Sending cryptocurrency from one address to another
• Specifying transaction fees.

On top of that, there are three useful functions that should be implemented during the wallet development process.

User authentication

Most countries have recognized cryptocurrencies as digital assets. This is why both a cryptocurrency and related personal data should be protected and stored in a safe place. Your development company must ensure high security both for the cryptocurrencies and data of users.

To prevent fraudsters from getting access to your users’ accounts, keep all user data encrypted. Also provide an option to enable two-factor or multi-factor authentication and strengthen account access recovery.

QR code scanner

QR codes give your crypto wallet a range of advantages and growth potential. They allow cryptocurrency to be sent in a contactless way, thereby surpassing the capabilities of plastic bank cards. QR code may also come in handy for crypto payments and P2P transactions.

Transaction notifications

Any finance application has such a function as transaction notifications. Your crypto wallet should also be able to notify users. Push notifications are a means of validation and security. Crypto trading platforms with exchange-based wallets use them to notify users of cryptocurrency withdrawal requests.

Why do You Need a Crypto Wallet?

As the world of digital assets continues to expand, a crypto wallet has become more than just a convenience — it’s a necessity. Whether you’re actively trading, collecting NFTs, exploring DeFi opportunities, or simply engaging with the Web3 ecosystem, your wallet functions as your personal vault, digital identity, and gateway to decentralized finance.

True Ownership and Enhanced Security

The fundamental value of a crypto wallet lies in control. When your funds are held on an exchange or managed by a custodial service, someone else holds your private keys — and ultimately, your assets. Non-custodial wallets put ownership firmly in your hands. You authorize every transaction yourself, ensuring that your crypto is protected against unauthorized access. In the world of blockchain, self-custody is the first step toward genuine security.

Direct Access to DeFi, dApps, and NFTs

Crypto wallets are not just storage tools; they provide seamless access to the broader decentralized ecosystem. With a wallet, users can trade tokens on decentralized exchanges, participate in liquidity pools, stake assets to earn yield, and engage with a wide array of dApps — from decentralized games to social platforms and DAOs.

NFT enthusiasts can mint, buy, and manage digital collectibles while proving ownership without relying on centralized platforms. Every transaction, from swapping tokens to interacting with smart contracts, flows directly through your wallet, making it the central hub of your Web3 activities.

Freedom from Traditional Financial Restrictions

Conventional financial systems often come with limitations — restricted banking hours, geographic restrictions, and approval bottlenecks. Crypto wallets eliminate these barriers. You can send and receive funds worldwide at any time, interact with decentralized applications without permission, and retain full control over your assets without risk of freezing or restrictions. In short: your wallet gives you financial freedom like never before.

The Rise of Self-Custody

In response to high-profile exchange hacks and custodial failures, more users are taking control of their own digital assets. This shift toward self-custody reflects a broader cultural trend in the crypto space: prioritizing security, transparency, and independence. Adopting a wallet isn’t just a precaution — it’s a forward-looking move that aligns with the decentralized vision of blockchain technology.

A Gateway to Crypto Payments

Modern crypto wallets aren’t only about holding assets — they are also the backbone of innovative payment solutions. Businesses entering the Web3 space can leverage wallet infrastructure to enable crypto payments for retail, subscriptions, in-app transfers, and more. Well-designed wallets ensure these payments are secure, scalable, and user-friendly, making them a critical component of any digital finance strategy.

Which Crypto Wallet App to Order

There’s one rule in the crypto industry: everyone is personally responsible for their coins. This is what differs digital currency from fiat money that you can deposit to a bank account and rest assured it won’t go anywhere.

Purchasing a ready-made solution, such as a white label wallet, you will have to balance security and user-friendliness. The better the one parameter, the worse the other, and vice versa. Therefore, if you are going to store large amounts, consider ordering a cryptocurrency wallet app that will match your goals and needs.

Your proprietary crypto wallet app will open unlimited opportunities for users. Our cryptocurrency wallet development company can implement both the primary functions and advanced ones, namely:

• Multicurrency support
• Buying and selling crypto using fiat currencies
• Connecting a merchant to accept payments.

Our crypto wallet development process always include the following:

1. Writing terms of reference — 18+ hours.
2. Business and technical analysis — 20+ hours.
3. UI and UX design — 30+ hours.
4. Back-end development — 50+ hours.
5. Front-end development — 40+ hours.
6. Testing — 20+ hours.

How Much it Costs to Develop a Crypto Wallet

The cost of cryptocurrency wallet development services depends on the type you need (custodial or non-custodial), as well as on the platform for which you need to create a cryptocurrency wallet. Of course, it also depends on the expected set of functions and the technology stack used.

Polygant is ready to develop a crypto wallet offering any functions that you and your future users may need. Send us a request to find out how much the wallet app development will cost in your case.