How Much Does it Cost to Create a DeFi Crypto Wallet?

The cost of DeFi crypto wallet development depends on a slew of factors such as the blockchain used, the smart contract choice, the UI & UX, and other aspects.

If you are planning to build your DeFi crypto wallet, one of the most important things to understand is your target audience. So, before you go ahead with the wallet development here are answers to some basic questions that you should know:

1) Seed phrase and private key

The first thing any crypto wallet user comes across is a seed phrase. But this feature was introduced only with HD wallets. Before the introduction of HD wallets, users had to remember the confusing private keys to access their wallets. An HD wallet is capable of generating as many Bitcoin or any altcoin addresses from the same seed. The important thing to note is that as many addresses as a user wants to create, they will be part of the same wallet.

Whenever the user creates their own crypto wallet, the system should be able to automatically generate a seed phrase or also known as a recovery phrase. A seed phrase is represented by a long string of random numbers used by the wallet to generate the private keys. These private keys enable the crypto wallet holder to send or spend their crypto assets.

In the background of the crypto wallet, the seed phrase is randomly generated from a list of 2,048 simple words. It is based on BIP-39 (Bitcoin Improvement Proposal 39). This standard plays an important role in making major wallets intercompatible. That means a wallet user just needs to enter his seed phrase to recover his crypto assets on a new wallet.

Now let’s say you are getting an exchange wallet developed. Then the crypto user can easily start trading as soon as he logs into his wallet. But if the users choose to use a software wallet like MetaMask then every time they must connect their wallet to the MetaMask and once they are done trading, they must disconnect it again.

2) Supported Cryptocurrencies

At the start of DeFi crypto wallet development, you need to decide how many crypto assets will your crypto wallet support. A multi-asset wallet needs to integrate the blockchains that support that asset. It is a best practice to identify the number of assets your wallet will support based on your target audience or target geography.

3) SPV Wallets

Before you understand whether you want to develop a crypto DeFi wallet that is an SPV wallet, it is important to understand what is a crypto wallet. A crypto wallet was previously used to hold a full copy of the blockchain so that it can validate every transaction. This was known as a full node crypto wallet and was heavy and could only be used on computers.

But unlike full node wallets, SPV or Simplified Payment Verification wallets don’t hold a full copy of a blockchain. They connect to full nodes for transaction validations. As a result, the SPV wallets are faster and lighter making them very suitable for use on mobile devices.

4) Trading fee handling

During the initial DeFi crypto wallet development stages, you need to decide whether the wallet will allow users to choose their own trading fees or will it automatically choose it for them. Also, you need to decide whether the crypto DeFi wallet will support Segwit which shrinks the size of the transaction file as a result the cost of sending that transaction is also reduced.

Another interesting feature that can be added is the support for Replace by Fee or RBF. If the user’s transaction didn’t go through because they didn’t pay high enough fees, they can use the RBF option to easily bump his fees to make the transaction go through.

5) NFT support

Non-fungible tokens have soared in popularity recently. If your users intend to trade NFTs then it is a good practice to enable support of different types of NFTs standards in the crypto wallet.

At Antier Solutions, we provide cost-efficient DeFi crypto wallet development services. In addition to building highly secure DeFi crypto wallets, we specialize in the development of custodial crypto wallets.

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