Since Satoshi Nakamoto launched and created Bitcoin in 2008, cryptocurrency has grown into a worldwide financial phenomenon. With cryptocurrency changing the way money and business operate internationally, you might want to consider how you can create your own cryptocurrency saving app. Major banks, accounting firms, software companies, and even governments have added to the blockchain and new regulations have required their compliance with the currency. But what exactly is cryptocurrency, why has it grown and why do people love it? Invatechs is dedicated to exploring the evolving world of financial tech, and we’re here once again to walk you through how you can build a cryptocurrency saving app, as well as what you need to know about cryptocurrency.
CRYPTOCURRENCY – THE BASICS
Cryptocurrency, in basic terms, is a digital asset that’s traded through mobile apps and on the web, which allows you to buy, transfer and sell cryptocurrencies like Bitcoin or Ethereum – cryptocurrency can also be traded or sold for other international currencies, like dollars or euros. Unlike a fiat currency, it operates more as a peer-to-peer electronic cash system. This has shaken up the way we look at money, currency, and how it can be electronically created and monitored.
One of the most unique parts of cryptocurrency is that there is no central server that keeps records of all the balances or transactions. Instead, all transactions between parties are broadcast to the entire network of peers exchanging in cryptocurrency, and then those transactions are approved by Miners. Miners are individuals (or groups of people) who approve transactions, stamp them as legitimate, and spread them into the network. Once they’ve approved the transaction, it’s added to the blockchain - lots of people are keeping copies of the blockchain across the entire world.
In order to approve transactions, Miners maintaining a ledger will have to solve a problem generated by a cryptographic hash function or cryptographic puzzle, essentially, competing to solve and then approve the transaction first. They’ll be rewarded with a payment from the network with more cryptocurrency (let’s say, more Bitcoins) which economically incentivises to take up the role and responsibilities of Mining. Cryptocurrency was in a part a response to the financial crash of 2008, and you’ll see it’s putting more power directly into the hands of its users.
TRENDS, GROWTH AND RESEARCH
Anyone with an internet connection can buy Bitcoin, accept Bitcoin transactions, and contribute to its development, fostering a democratic currency system. Of course, this doesn’t mean it isn’t susceptible to fluctuations, as its value dropped quickly and drastically by 40% in just two weeks in 2018; it saw another sharp decrease in wake of Covid-19 this year too. Just like any stock or currency, one’s faith in it can be challenged. Nevertheless, large corporations have still begun their investment in Bitcoin, as Wall Street began trading in regulated Bitcoin futures in 2018, and even internationally its influence has become more mainstream.
Financial Actions Task Force (FATF) sets new global standards and rules for cryptocurrencies that prevent money laundering and terrorism and allows businesses who deal with cryptocurrencies to operate with traditional banks. This prompted the BaFin, Abu Dhabi, and India to join the US and the UK as FATF members.
We’ve seen before how open banking, automation, and the growth of Fintechs are continuing to change the landscape of the worldwide financial market, banking, and currency. Cryptocurrency is a new, exciting innovation that adds to that progression; and in spite of a worldwide pandemic, it has become recognised on the world stage as an asset, and its value continues to grow. Cryptocurrency exchange platforms continue to grow as well, as trading exchanges like Coinbase, Bittrex, and Kraken are claiming more international renown.
There’s a lot to learn about cryptocurrency, and as it develops financial experts continue to study its capabilities; Bittrex weighed in-on some of the fears and concerns people may have about the currency. It’s important you continue to learn about it and stay up to date with its evolution. Still, it’s clear to see cryptocurrency is gaining more prominence and influence, and there is a great deal of potential to tap into. It’s for these reasons you might want to consider creating your own cryptocurrency saving app.
CREATING A CRYPTOCURRENCY SAVING APP – WHAT MAKES ONE A SUCCESS
Let’s take a look at one of the most popular cryptocurrency apps – Coinbase – which works as a great starting point when you’re considering creating your own app. Coinbase has some standout features, including support for PayPal, credit cards, as well as bank transfers as payment methods; it also works with a number of cryptocurrencies including Bitcoin, Litecoin, Bitcoin Cash and Ether. By charging various fees on selling and buying transactions (these fees are determined by the transaction type and location), Coinbase is able to generate its income – around $2.7 million a day. Coinbase offers some key features that make it such a success, including the ability to monitor and control all of your cryptocurrency accounts, perform trade-related transactions, as well as monitor exchange trends.
Invatechs also has a cryptocurrency saving app, which allows you to set up automated recurring deposits, the ability to round up daily purchases to the nearest $1, $2 or $5, and lets you automatically invest the accumulated difference into cryptocurrency. What you can see from Coinbase and Invatechs’ apps, is that by aggregating and streamlining everything you need into one app, as well as finding distinct customer advantages will set you out amongst the market of cryptocurrency wallets. Cryptocurrency regulations and laws differ across countries, so you’ll have to consider what is possible for your app depending on where you are – that’s why it’s important to thoroughly research cryptocurrency in relation to where you live first and foremost.
You can also see two very important first steps you’ll need to take when it comes to making your own app: thorough market research and analysis. You’ll also want to consider who is going to be on your development team, identify what functions you want your app to have, what back-end technology you want to use, etc. Creating an app fits together like a puzzle with lots of separate pieces, so we’ve got some tips and advice for how you might go about that process.
CREATING A CRYPTOCURRENCY SAVING APP – WHERE TO START
Market Research – You’ll want to start with competition analysis and user interviews to find out what the primary needs for your app will be. This will give you a good indication of what’s on the market and the scope of the project. Look out for the advantages and disadvantages of other cryptocurrency saving apps, such as how many cryptocurrencies they might offer and how that limits or increases user accessibility.
Project Planning – After you’ve completed your market research, you should have honed in on what kind of functionalities you want to offer. An important thing to consider is whether your app will be available as both web/desktop and mobile versions, and this is going to inform you what technology stack you’ll need. With your mobile app, it’s highly recommended you make it iOS and Android compatible to gain as big an audience as you can. Whilst you get the infrastructure for the app down, it’s vital you also consider the legal regulations and jurisdictions your app has to comply with - we’d recommend seeking legal counsel to help you with this. Finally, you’ll need to decide how you’ll be earning money from your app: for example, you could take the traditional route and charge commission on trade transactions, or you could attract customers to your trading terms and go commission-free, like the app Robinhood.
Technology Stack – Java or Node.js, are two of the most popular back-end products for cryptocurrency exchange apps. For the front-end technology, Angular or React Native are two very effective tools and React Native allows you to build an application that can run on Android and iOS. However, if you want your app to allow cryptocurrency exchange to fiat currency exchanges, you’ll need to integrate with a Payment Service Provider (PSP) like Coinify or Bitpay.
Building a Team – So you’ve recognised the features and functionality of your app, the regulations and the technology stack required. Now you’ll want to build a team that can help you put all of this together. You may find you want to outsource some of the projects or hire freelancers depending on your budget. Some key team player we recommend are:
Developers for iOS, Android, back-end, and front-end technologies
A graphic designer and marketing team
A project manager to oversee the overall development and coordination
Someone to test the product such as a QA engineer
Prototyping – A working prototype will come in handy for a number of reasons before you create the final product: you can advertise the app’s capabilities to future investors, gauge user feedback, and test the app’s functionality, UI, and UX. InVision is a great tool that allows you to build and test an interactive prototype.
Final development stage – Once you’ve got all of the following done, the end-product development can begin. Creating an app for iOS and Android usually takes between 5 to 6 months, but blockchain technology and cryptocurrency trading is a new, complex phenomenon, so you can’t afford to cut any corners and make mistakes in development. That’s why you’ll need quality, expert software developers onboard combined with your creative team and market research to create a successful app.
IN CONCLUSION
It’s clear that a lot of work goes into creating a cryptocurrency saving app, and competition is always growing - but there’s so much potential, expansion, and excitement that’s on offer if you decide to make the investment. At Invatechs, we’re committed to developing fintech possibilities (just take a look at our new project!) and helping clients reach their potential. Contact us today and book a free consultation if you’re looking to develop an app of your own, and take your first steps into this new, revolutionary world of finance.