How To Build Crypto Wallet Business In 2024? Guide and Costs

As we step into 2024, opportunities for aspiring entrepreneurs in the crypto industry are nothing short of exhilarating. In this guide, we will unlock the doors to the crypto wallet business and hand you the blueprint to creating a cryptocurrency wallet. Get ready to witness your possibilities in 2024.

What Is Cryptocurrency Wallet?

A cryptocurrency wallet is a secure vault in the cybernetic domain. Picture it as a personalized sanctuary where digital wealth finds a home, guarded by layers of encryption and cutting-edge technology.

Main elements of crypto wallet apps:

• User interface,
• Multi-currency support,
• Authentication measures,
• Private key management,
• Transaction history and tracking,
• QR-сode scanning,
• Push notifications,
• Two-factor authentication,
• Backup and recovery,
• Integration with DeFi and dApps.

Types Of Crypto Wallets

How to create a crypto wallet app business in 2024? First things first, choose the type. There are many cryptocurrency wallets, and each serves various preferences and security obligations. Let’s find out.

By Format

Hot Wallets

• Desktop wallets are a locally installed application. Perfect for those who prefer managing their assets on a desktop. Examples: Exodus, Electrum.
• Mobile wallets are mobile applications enabling you to transact and monitor your funds anytime, anywhere. Examples: Trust Wallet, MyEtherWallet.
• Web wallets are web applications for storing digital assets. With such a wallet, you can manage cryptocurrencies from any device. Examples: Blockchain.info, Coinbase.

Cold Wallets

• Paper wallets are a piece of paper with your private key, written or printed. It’s a secure, offline storage method resistant to hacking. Example: WalletGenerator.net. 
• Hardware wallets are a small, portable device that safeguards your digital currencies offline. Examples: Ledger Nano S, Trezor.

By Governance

• Custodial wallets are third-party platforms that look after your digital assets. These platforms manage private keys on users’ behalf. Examples: Coinbase, Binance.
• Non-custodial wallets are applications that provide users a complete autonomy over their funds. Users retain control of private keys. Examples: MyEtherWallet, MetaMask.

Benefits of Cryptocurrency Wallet Development

• Unrivaled Growth

Recent statistics indicate that the number of cryptocurrency users is poised to double by 2024. This surge in adoption translates to a vast user base eagerly seeking secure and user-friendly wallets.

• Financial Inclusion

Since traditional finances erect barriers, digital wallets provide a bridge, opening individuals worldwide the road to the global economy.

• Innovation and Customization

Crypto wallet app development allows developers to explore new technologies, experiment with user interfaces, and create a product geared towards user demands.

• Security and Control

By owning a wallet, individuals gain unprecedented control over their financial assets.

• Investment Potential

Since the demand for secure, user-friendly wallets is rising, cryptocurrency wallet application development represents a doorway to promising returns.

• Decentralization Wave

Cryptocurrency wallets are the major applications of the decentralization movement. For developers and investors, it implies contributing to a shift in traditional financial structures. 

How to Start Cryptocurrency Wallet Business In 8 Steps?

Step 1. Define Your Vision and Purpose

Articulate your vision for the crypto wallet business. Ask yourself: What sets your wallet apart? Is it a commitment to security, user-friendly features, or perhaps integration with top-notch technologies like DeFi and dApps? Understanding your unique value proposition will shape the foundation of your venture.

Step 2. Research Market and Target Audience

Knowing your audience is crucial. Thoroughly research the market to identify user wants, preferences, and pain points. Whether pleasing professional traders, crypto enthusiasts, or beginners, adjusting your wallet to a specific audience guarantees relevance and resonance.

Step 3. Authorize Your Business

Comply with the regulations of your jurisdiction. Legal registration not only fosters trust among users but also diminishes potential legal challenges down the road.

The conditions for legalizing your crypto wallet business vary. Learn more about the best jurisdictions for a crypto venture. Common requisites include:

• Business registration;
• AML and KYC compliance;
• Data protection compliance;
• Licenses.

For registering your business, you also must choose a legal structure:

• A Limited Liability Company (LLC) provides a balance between simplicity and liability protection. It separates personal and business assets, shielding the owner’s personal assets from business debts.
• Limited Partnership (LP) combines limited liability for some partners with the pass-through taxation benefits. Such a business model craves for at least one general partner with unlimited liability.
• Individual Entrepreneurs (IE) without a legal entity is the most convenient legal structure, favored for simplicity and ease of setup. IE permits direct control over the business, yet offers no liability protection and may limit growth potential.

Why register your business? It certifies that your business operates within the boundaries of the law. Plus, registration enhances your business’s credibility. Moreover, many banks demand enterprises to be registered to open business accounts.

Step 4. Secure Initial Funding

Whether through personal savings, angel investors, or venture capital, having a solid financial base means you can weather the initial stages of business development and growth.

Funding sources involve: 

• Venture capital,
• Angel investors,
• Bank loans,
• Crowdfunding (ICO, STO, crowdfunding platforms),
• Crypto incubators and accelerators,
• Crypto-related competitions and hackathons.

To stimulate investments, build a solid business plan. Present exhaustive financial projections that outline how the funding will be utilized and the expected return on investment.

Do not forget about a clear and viable revenue model. Investors want to understand how your business will generate income and sustain itself. Highlight the market potential for your cryptocurrency wallet app development. Demonstrate the problem it solves, the target audience, and the growth prospects.

Attend conferences and meetups. Engage with potential investors at blockchain and crypto conferences. Networking is key to finding investors who share your passion for the industry. Besides, partnerships can bring credibility and access to a wider user base.

Join online forums and communities where crypto enthusiasts and investors gather. Platforms like Reddit and Bitcointalk can be excellent places to connect.

Step 5. Open Business Account

Research and choose a crypto-friendly bank. Consider online banks that cater to digital businesses. They often have simplified processes and may be more open to working with crypto-related ventures.

Have your legal business documents ready: the certificate of incorporation, business licenses, any other relevant paperwork. Provide personal identification documents for all individuals associated with the business: passports, driver’s licenses.

Some banks may request a business plan outlining your operations, revenue model, and growth projections.

Establish open communication with your bank. Keep them informed about your business activities and any changes that may impact your banking needs. If you encounter problems or uncertainties, seek guidance from your bank.

Step 6. Acquire Business Licenses

Understand the regulatory environment for cryptocurrency businesses in your jurisdiction. Seek advice from legal professionals who specialize in cryptocurrency regulations.

Identify applicable licenses:

• Money Transmitter License: if your crypto wallet business involves transmitting or exchanging cryptocurrencies.
• Financial Institution License: in some jurisdictions, providing crypto financial services may necessitate this license.

Gather all documentation for license applications: 

• Business plans, 
• Financial statements, 
• Security protocols, 
• Privacy policy,
• Details about your operational processes.

Adhere to deadlines and submit your license applications in a timely manner. 

Stay in regular communication with your legal counsel to remain informed about any regulatory updates affecting your business. Subscribe to regulatory updates. Participate in forums. Maintain an active dialogue with regulatory bodies.

Step 7. Choose Developer

Select experienced professionals versed in blockchain technology, cryptography, and user interface design. Their expertise will be instrumental in building a secure, user-friendly, and technologically advanced wallet.

We suggest you launch your business with ready-made software because bitcoin wallet development from scratch is a resource-intensive process. Prepared software accelerates development, trimming time and costs.

Ready-made software often comes with proven solutions and functionalities, thus minimizing the risk of unforeseen challenges during development.

On top of that, working with a developer, you can focus on customizing the chosen software to align with your business vision. This way, you benefit from an adapted solution without investing too much time.

Established developers often integrate strict security measures, such as:

• Encryption,
• Multi-signature wallets, 
• Two-factor authentication, 
• Regular security audits,
• Compliance with security standards, i.e. ISO/IEC 27001.

If you pick your software developer wisely, you can benefit not only from quality software. Developers, like Merkeleon, provide white label crypto wallets. These solutions, in addition to software, include licensing assistance, marketing assistance, help with opening a bank account. White label products facilitate launching business in terms of time and costs.

Step 8. Advertise Your Business

Define your unique selling proposition. Clearly state what sets your crypto wallet apart. Whether it’s enhanced security features, user-friendly interfaces, or unique functionalities, highlight what makes your wallet a must-have for users.

Craft a narrative around your brand. Share the journey of your crypto wallet development. Emphasize the values and vision that drive your project.

Produce informative content about cryptocurrency, blockchain technology, and the advantages of using your wallet. Blogs, articles, video content can establish your brand as an authority in the industry.

Establish a presence on major social media: Twitter, Facebook, LinkedIn, Instagram, Threads. Engage the crypto community, share updates, respond to user queries.

Collaborate with other companies in the crypto space, such as exchanges, blockchain projects, or financial institutions. Set up an affiliate marketing program where affiliates promote your crypto wallet in exchange for commissions. 

Participate in crypto and blockchain conferences, both in-person and virtual. Organize events: webinars, Ask Me Anything (AMA) sessions, virtual conferences. Address user questions, showcase features, gather feedback.

Crypto Wallet Business Cost

Let’s explore the key factors that contribute to the final cost of starting a crypto wallet business.

Development Costs

Cryptocurrency App Development from Scratch

Developing a crypto wallet app from scratch requires a skilled development team, time, and technological resources. Spendings include:

• Development team: 

Blockchain developers ($80,000 – $150,000 per year per developer), 

Frontend and backend developers ($60,000 – $120,000 per year per developer), 

Security experts ($80,000 – $150,000 per year per expert), 

QA engineers ($60,000 – $120,000 per year per engineer);

• Technology stack: 

Blockchain platforms and programming language ($10,000 – $50,000),  

Database ($5,000 – $20,000), 

Frameworks ($10,000 – $30,000);

• Security protocols: 

Encryption and multi-signature wallets ($10,000 – $30,000),

Security audits ($20,000 – $50,000 per audit);

• UI design ($20,000 – $50,000);
• Testing and QA ($20,000 – $40,000).

Total estimated cost for developing a crypto wallet from scratch: $400,000 – $1,000,000

White Label Crypto Wallet

Opting for a white-label solution can significantly cut development time and costs. White-label crypto wallet solutions come pre-built with essential features, ready for customization and faster deployment. Spendings include:

• Subscription from a provider ($10,000 – $50,000);
• Customization: branding elements, color schemes, additional features ($20,000 – $50,000);
• Integration: with blockchain networks, payment gateways, other components ($10,000 – $30,000).

Total estimated cost for white label crypto wallet solution: $40,000 – $130,000

Operational and Compliance Costs

• Legal compliance: necessary licenses, adhering to AML/KYC regulations, ensuring legal compliance ($10,000 – $50,000);
• Legal counsel ($20,000 – $50,000);
• Business registration ($1,000 – $5,000);
• Security audits ($20,000 – $50,000 per audit);
• Compliance with data protection laws ($10,000 – $30,000);
• Customer support team: to address user queries and provide assistance ($30,000 – $80,000 per year).

Marketing and Promotion Costs

• Marketing campaigns: 

Digital marketing ($50,000 – $200,000 per year),

Social media advertising ($20,000 – $50,000 per year);

• Partnerships: 

Partnership initiatives: collaborations with crypto projects or influencers ($10,000 – $50,000),

Affiliate marketing, including commissions ($5,000 – $20,000);

• Educational content: ($20,000 – $40,000).

Ongoing Maintenance and Updates

• Technical support ($30,000 – $80,000 per year);
• Development costs: updates, security improvements ($50,000 – $150,000 per year);
• Analytics tools ($5,000 – $20,000).

The total cost of launching a crypto wallet business depends on development approach, geographical location, business scale. While developing a wallet from scratch can incur higher upfront costs, opting for a white-label solution is a more budget-friendly alternative with faster time-to-market.

FAQ

How to create a crypto wallet app on your own?

For complete understanding, read our guide about creating a cryptocurrency wallet. To cut a long story short, you should:

1. Outline the features and functionalities of your crypto wallet app;
2. Choose a suitable blockchain platform;
3. Pick a programming language;
4. Implement security measures;
5. Create an intuitive UI;
6. Integrate transaction tracking, QR code scanning, multi-currency support;
7. Test the app;
8. Launch and monitor performance and user feedback.

How to choose the type of wallet for business?

Look at the following factors:

• The level of compulsory security and volume of transactions;
• Convenience for your target audience: individuals or businesses;
• Integration with your services;
• Blockchain compatibility.

How to choose the right software provider?

1. Explore multiple software providers. Compare their offers, reviews, track records;
2. Make sure your provider adheres to security measures;
3. Assess the scalability of the provider’s solutions to accommodate your business growth;
4. Evaluate the pricing structure, licensing fees, additional costs;
5. Choose a provider that satisfies your customization objectives.

Can I buy the source code if I choose a white label model?

A source code is an expensive piece of information, meaning few novice wallet operators can afford it from the start. Nevertheless, with time, you can buy the source code of your white label solution.