Many players are planning their crypto wallet development because of the vast potential in crypto space. Crypto wallets have become extremely popular across the blockchain ecosystem. Cryptocurrencies are kept securely in crypto wallets, also used to perform transactions across the globe. Cryptocurrency wallets are designed and developed to store, manage, and transact cryptocurrencies securely and safely and at lightning speed. Traders use the platform to boost their earning potential. 

While different kinds of wallets offer different advantages, each one has its own set of developmental obstructions. Let's find out what are the challenges in crypto wallet development and how they can be resolved. 

_{1. Tech Vulnerabilities} 
Security vulnerabilities have become common these days in crypto space. What matters is whether you identify them at the right time. 
Some of the more popular ways of providing security to wallet users are: 

_{· Two-factor Authentication}
Double up on security by protecting your applications and environments with two-factor authentication (2FA). 
Two-factor authentication (2FA) is a specific type of multi-factor authentication (MFA) that strengthens access security by requiring two methods (also referred to as authentication factors) to verify users' identity. It's the simplest, most effective way to verify that your users are who they say they are. 

_{· Multi-Sig Wallet protection} 
Multisignature wallets are cryptocurrency wallets that require two or more private keys to sign and send a transaction. Multisig wallets are smart contract-based wallets. Rather than being endpoints controlled by a user, these smart wallets are controlled by code and governed on-chain by their owners. Because of this setup, multisig wallets are considered a “seedless” form of self-custody.

_{· Better encryption standards} 
Different types of encryption methodologies exist in crypto space and these add extra layers of security. For example, AES-256-CBC provides more security to wallets against hackers. 

_{· DDoS Attacks}
Crypto wallets are highly prone to Distributed Denial-of-Service attacks. The attackers flood the wallets with fake transactions bringing it to the point of breakdown. That is where a crypto wallet needs a DDoS attack mitigation plan. 

_{2. Ease of use} 
Crypto wallets or exchanges sometimes scare users because of the complexity around their use. Having some of the below features helps crypto users feel familiar with technology and offers them ease of use:

_{· Integrated QR Code Scanner}
Wallet addresses are long alphanumeric characters and very often users end up keying in a wrong digit or alphabet. For this, an integrated QR code scanner comes in handy. With just a click, one user can transfer funds to another user. 

_{· Integrated Near Field Communication (NFC)} 
A crypto wallet with an NFC speeds up the transfer of funds between the users without security issues. The sender can click on the NFC tag in their wallet and the receiver’s wallet address gets retrieved directly. This is another way of simply transferring the funds to the right wallet. As this simplifies the user’s transactional capability, such wallets become a preferable choice for the users. 

_{3. Slower user growth}
As of February 2021, there are more than 68 million blockchain wallet users. Overall, the number continues to grow as new blockchain wallets and cryptocurrencies are introduced to the market. However, some developing wallets may find the user growth rate slower than before, since some users find that crypto assets are not convenient to spend.

iPeakoin offers a CaaS (Card as a Service) solution for web3 to empower them to launch cards for customers, bringing crypto further into mainstream financial services and helps crypto businesses build stronger connections with end users.

_{Wrapping Words}
Crypto users are surging speedily, leading to an increase in wallet platforms. You can get a competitive edge over others by developing robust and scalable services with experts. iPeakoin is a licensed FinTech platform which frees from legacy systems, bringing crypto-to-card payment solutions to the real economy with scalable CaaS (Card-as-a-Service).  We now has expanded our business to over 180 countries/regions, serving more than 10,000 companies in 2022. 

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For more details, or just want to say hi, feel free to send us a note at marketing@ipeakoin.com.

iPeakoin is a licensed FinTech platform that drives the innovation of crypto payments. With a scalable Card-as-a-Service to bring crypto further into mainstream financial services, we help crypto businesses build stronger connections with end users.