Thanks to the advanced camera systems and even LiDARs nowadays in our smartphones Augmented reality is subtly blending into everyday consumer life; you can actually see how a new Ikea couch or Apple Homepod will look in your living room before you decide and buy one. Companies like Meta (formerly Facebook) are building an entirely new world using Virtual Reality termed Metaverse where you can create virtual office spaces to have real-time meetings with your colleagues, play a game of basketball and even attend concerts.
AR augments the real-world scene by adding layers on top of your real world, whereas VR creates completely immersive virtual environments that need VR goggles or headsets to experience it. Both of these technologies started as the next chapter of the gaming industry but quickly found their way into other applications like Fashion, Interior Designing, e-commerce, Architecture and Metaverse. You no longer have to visit a physical store to experience how a new jacket or pair of glasses will look on you or a theme park in Florida to enjoy a roller-coaster ride.
Download the Aspiring AR/VR Developer infographic here!
The choice of programming language matters deeply to developers because they want to keep their skills up-to-date and marketable. Programming Languages are a beloved subject of debate and the kernels of some of the strongest developer communities. They matter to toolmakers too, because they want to make sure they provide the most useful SDKs.
It can be hard to assess how widely used a programming language is. The indices available from players like Tiobe, Redmonk, Stack Overflow’s yearly survey, or GitHub’s State of the Octoverse are great, but offer mostly relative comparisons between languages, providing no sense of the absolute size of each community. They may also be biased geographically or skewed towards certain fields of software development or open-source developers.
The estimates we present here look at active software developers using each programming language; across the globe and all kinds of programmers. They are based on two pieces of data. First is our independent estimate of the global number of software developers, which we published for the first time in 2017. We estimate that, as of Q3 2022, there are 33.6 million active software developers worldwide.
Second is our large-scale, low-bias surveys which reach tens of thousands of developers every six months. In these surveys, we have consistently asked developers about their use of programming languages across 13 areas of development, giving us rich and reliable information about who uses each language and in which context.
JavaScript continues to be the largest language community
JavaScript remains the most popular programming language for the 11th survey in a row, with over 19.5M developers worldwide using it. Notably, the JavaScript community has been growing in size consistently for the past several years. Between Q3 2020 and Q3 2022, Javascript experienced a 59% increase as 7.3M developers joined the community – one of the highest growths in absolute terms across programming languages. Not only do new developers see it as an attractive entry-level language, but existing ones are also adding it to their skillset. JavaScript’s popularity extends across all sectors, with at least a quarter of developers in every sector using it.
Developers joined the JavaScript community in the last two years
In 2020, Python overtook Java as the second most widely used language and now counts nearly 17M developers in its community. Python has continued to show strong growth, having added about 8M net new developers over the last two years. The rise of data science and machine learning (ML) is a clear factor in Python’s growing popularity. To put this into perspective, about 63% of ML developers and data scientists report using Python. In comparison, less than 15% use R, the other language often associated with data science.
Java is one of the most important general-purpose languages and the cornerstone of the Android app ecosystem. Although it has been around for over two decades, it continues to experience strong growth. In the last two years, Java has almost doubled the size of its community, from 8.3M to 16.5M. For perspective, the global developer population grew about half as fast over the same period. Within the last year alone, Java has added 6.3M developers, the largest absolute growth of any language community. Our data suggest that Java’s growth is supported not only by the usual suspects, i.e. backend and mobile development but also by its rising adoption in AR/VR projects, likely due to Android’s popularity as an AV/VR platform.
The group of major, well-established programming languages is completed with C/C++ (12.3M), C# (10.6M), and PHP (8.9M). PHP has seen the slowest growth rate of all languages over the last year, growing just 22%, adding 1.6M net new developers. PHP is a common choice for cloud and web developers but has seen decreasing popularity, particularly amongst web developers where it has gone from the second most popular language in Q3 2021 behind JavaScript, to the fourth most popular in Q3 2022, with Python and Java becoming more popular choices.
C and C++ are core languages in embedded and IoT projects, for both on-device and application-level coding, but also in mobile and desktop development, which are sectors that attract 17.7M and 15.6M developers respectively. C#, on the other hand, has maintained its popularity among multiple different areas of software development, particularly among desktop and game developers. C/C++ added 4.3M net new developers in the last year and C# added 2.8M over the same period.
Rust and Kotlin continue their rise in popularity
We have previously identified Rust and Kotlin as two of the fastest-growing language communities and this continues to be the case. Rust has more than tripled in size in the past two years, from just 0.8M developers in Q3 2020 to 2.8M in Q3 2022. Rust has added 0.7M developers in the last six months alone and is close to overtaking Objective C to become the 11th largest language community. Rust has formed a strong community of developers who care about performance, memory safety, and security. As a result, it has seen increased adoption in IoT software projects, but also in desktop and game development, where Rust is desired for its ability to build fast and scalable projects.
Kotlin has also seen a large growth in the last two years, more than doubling in size from 2.3M in Q3 2020 to 6.1M in Q3 2022. As such, it went from the ninth to the seventh largest language community during this time, overtaking Swift and those using visual development tools. This growth can largely be attributed to Google’s decision in 2019 to make Kotlin its preferred language for Android development it is currently used by a fifth of mobile developers and is the second most popular language for mobile development. Despite Google’s preference for Kotlin, the inertia of Java means that, after three years, it is still the most popular language for mobile development.
Swift currently counts 4.2M developers and is the default language for development across all Apple platforms. This has led to a phase-out of Objective C (3M) from the Apple app ecosystem. However, Objective C has maintained its place among IoT developers and increasing adoption for on-device code, and AR/VR developers, leading to a similar increase in the number of Swift and Objective C developers in the last two years; 1.8M and 1.6M respectively.
The more niche languages – Go, Ruby, Dart, and Lua – are still much smaller, with less than 4M active developers each. Go and Ruby are important languages in backend development, but Go is the third fastest-growing language community and has added more than twice as many developers as Ruby in the last two years; 2.3M and 1.0M new developers, respectively. This is likely due to the fast development cycle it offers even though it is a compiled language.
Dart has seen steady growth in the last two years, predominantly due to the increasing adoption of the Flutter framework in mobile development, with 13% of mobile developers currently using Google’s language. Finally, Lua is among the fastest-growing language communities, mainly drawing in IoT, game, and AR/VR developers looking for a scripting alternative to low-level programming languages such as C and C++.
There is no longer a stage in the creation of artificial intelligence when the technology is in the experimental phase with minimal proof of concept. Organisations all over the globe are struggling with how to incorporate it into their culture and locate the appropriate individuals to lead artificial intelligence and machine learning initiatives because they are aware that it is a force that must be reckoned with.
According to research, sixty percent of Indian businesses are under the impression that Artificial Intelligence (AI) would have a disruptive effect on their industry over the next two to three years. According to a survey, the number of available positions in the fields of analytics and data science has increased by thirty percent between April 2021 and April 2022.
The rapid advancement of artificial intelligence and automated systems is opening up prospects for companies, the economy, and society.
Automation and artificial intelligence have been around for some time, but current technological advancements are expanding the capabilities of machines to perform more and more. According to the findings of our study, society needs these advancements to create value for companies, contribute to economic development, and make progress on some of the most challenging social issues that we face.
The rise of AI and new jobs
Although the technologies of the Fourth Industrial Revolution, powered by AI, will continue to dramatically transform the world and the way we work and live, it is possible that AI may not result in a significant rise in employment. Instead, artificial intelligence will result in the creation of more employment than it eliminates via automation.
These newly generated positions will call for new skills, which in turn will entail considerable investments in upskilling and reskilling programs for both young people and adults. However, private companies and public administrations may – and are obligated to – collaborate to confront this transition and welcome the beneficial effects of AI on society.
According to the Global Artificial Intelligence Study conducted by the year 2030, AI would cause a software projected rise of $15.7 trillion, or 26 percent, in the total GDP of the world. The expansion of GDP will be driven by consumer spending to the tune of around sixty percent, with increased productivity accounting for approximately forty percent of the overall expansion.
Reskilling and Upskilling
For corporations and authorities to reap the advantages of AI in terms of productivity and profitability, they will need to work together on huge reskilling and upskilling initiatives. These projects will assist workers in retraining and preparing for new and upcoming employment opportunities.
Artificial intelligence can automate 3 percent of employment opportunities over the next few years. Increased digitalization brought about by COVID-19 may speed up this process. As artificial intelligence develops and becomes increasingly self-sufficient, thirty percent of all employment and forty-four percent of people with low levels of education will be in danger of being automated by the middle of the twenty-third century.
According to the World Economic Forum, during the next five years, almost half of all employees will need some kind of further training or retraining to be adequately prepared for changing and new employment opportunities. The fast speed of technological progress necessitates the development of new models for employee training to adequately prepare workers for a future dominated by AI.
The development of workers’ soft skills, which can’t be replicated by artificial intelligence, should be a priority for businesses. It seems probable that the importance of creative thinking, leadership and emotional intelligence will only continue to rise in our ever-changing world.
Since 2018, AI and IoT have managed to land in the top 3 on the list of Emerging Technology Top 10, and with valid reasons that showcase the strength of AI and IoT, alternatives are abundant SUCH helping businesses generate productivity improvements, end up saving time, and raise profits. In other words, AI and IoT are helping businesses create a better future.
Businesses seek managers who can embrace the power of artificial intelligence to make successful business choices that may reform ineffective business models and establish new ones that can have an oversized benefit as the competency of AI continues to rise. With proper training and appropriate programs applicants can make their career in AI may explore the concept of combining value creation and value appropriation in corporate CRM Development Company and changing current organizational procedures and offers.
Author Bio – Ethan Millar is a technical writer at Aegis Softtech especially for computer programming like Asp.net, Java, Big Data, Hadoop, dynamics AX, and CRM for more than 8 years. Also, have basic knowledge of Computer Programming.
The Developer Nation surveys are designed in a way that giving back to the community becomes an integral part of them. For each survey wave we run we donate 0.10$ to the favourite charities of our Developer Nation Community. The goal is to reach at least $2000 in donations.
During our 23rd Developer Nation global survey, we collected a total of 26,183 qualified responses, that means we were able to meet and surpass our goal by donating $2,618- and support the causes that you care about.
Though most of these organisations and NGOs are developer centric, helping people learn software development and grow in their career, we welcome more diversity in theorgs we are supporting . You can use the comments section below and add your suggestions.i
For the 23rd Developer Nation global survey, here is the list of organisations we donated to:
The mission of freeCodeCamp is to help people learn code for free. I’m personally a huge fan of the work they are doing and have myself learned quite a bit from there. A total of 7979 survey participants picked them for support so we were able to donate $798 to freeCodeCamp.
The Free Software Foundation (FSF) is a nonprofit with a worldwide mission to promote computer user freedom. A total of 5622 participants picked FSF, hence we were able to donate $562 to support their cause.
Women Who Code (WWCode) is an international nonprofit dedicated to inspiring women to excel in technology careers. We donated $528 to help support the cause of this wonderful inclusive organisation. They have many local chapters around the world, so if you’re a woman who is trying to learn to code or find some mentorship, the Women Who Code community and local chapter is definitely a place to look for.
A non-profit organisation on a mission to develop and scaling technologies to rid the oceans of plastic. A much needed cause to support in order to sustain the ecological balance or marine ecosystems. Our developer community has enabled us to donate $470 to them.
Ada developer academy offers an immersive and intentional coding school prioritising community over competition. It’s very welcoming and inclusive and we were able to donate $261 for their cause.
It really feels great to give back to the community in a way that can help them further their noble cause and create a more sustainable ecosystem for everyone to live and thrive in.
We’re truly grateful to our community members who have enabled us to do this and without your survey participation it won’t be possible so we extend our thank you and promise to continue to do this in future.
We often come across the term “Enterprise Developers” and even more often, we ask ourselves questions about their profile, from basic demographics to purchasing decisions. But who is an Enterprise Developer? According to SlashData, large enterprise developers as those who work for organisations with between 1,000 and 5,000 employees and very large enterprise developers as those who work for organisations with more than 5,000 employees. Non-enterprise developers are those that remain.
How many enterprise developers are out there?
In Q1 2021, SlashData estimated that there are 1.5M enterprise developers working in large organisations, and 2.0M working in very large enterprises. Between Q1 2020 and Q1 2021, there was a 21% year-on-year growth in the large enterprise population, while the very large enterprise population increased by 18%. This is impressive growth, considering that the non-enterprise population showed only 10% growth over the same period. However, for the large and very large enterprise population, the immediate picture is one of stability: in the last six months, it has remained practically unchanged. Considering that the biggest tech companies an important proportion of very large enterprises have benefited from the economic situation caused by the pandemic, it is somewhat of a surprise that the very large enterprise population hasn’t increased. Perhaps there is a backlog of hiring splurges that have yet to show up in the data or these companies are remaining cautious and waiting to see how the pandemic plays out before committing to hiring more employees.
Where in the world are they located?
If we break down the enterprise populations by region, we find that 22% of software developers in South Asia are very large enterprise developers. These enterprises are likely using their global connections to capitalise on price here: the median per-hour cost for Android development in India, a large hub for app development, is $30. In North America, the rate is five times as high. For example, SAP, the largest non-American software company by revenue, has based its largest R&D lab outside Germany, in India. In absolute terms, most developers working at very large enterprises are to be found in North America (27%) and Western Europe (26%). South Asia takes third place, with 17% of all very large enterprise developers working in this region. North America, Western Europe, and East Asia are the stage for large enterprises, with 28%, 24%, and 17% of the large enterprise population respectively.
Which sectors or industries are they working on?
Most developers are involved in web apps: more than 6 out of 10 developers are involved in the sector. However, developers are often involved in more than one sector. In fact, around three-quarters of developers are involved in more than two sectors, while around 15% engage in five or more sectors. Besides web apps, enterprise developers are dominated by their involvement in the backend sector: 56% of very large enterprise developers and 51% of large enterprise developers work in this sector. This is compared to the 45% of non-enterprise developers who work in the backend sector. Enterprise businesses typically have more sophisticated needs that warrant engaging backend developers. With the myriad of resources at their disposal, enterprises are more easily able to develop large-scale, connected products with complicated backends, IoT devices, for example. Backend developers are required to achieve these goals.
The opposite trend is observed in mobile apps: 40% of non-enterprise developers work in this field, while just under a third of enterprise developers do. The relatively short scope and scale of mobile app development make small business engagement in this sector achievable. For enterprise companies a mobile app, or a web app, is only one small part of a giant machine of software; but for smaller organisations, the mobile or web app might be the entire product. Web apps, backend services, and desktop apps the top three sectors enterprise developers are involved should be explored in greater detail.
Attitudes and engagement
Open source has become a ubiquitous part of developer culture, embodying the widely venerated values of sharing code, knowledge, and best practices among peer developers. These days, many open source projects are vendor or corporate owned and maintained. Developer attitudes towards contributing to these open source projects differ, but across the non-enterprise/large enterprise/very large enterprise divide these differences are subtle. Large enterprise developers are slightly more likely to contribute to corporate-owned, open source to improve their positions in the software food chain: 17% are motivated by their desire to get noticed by the company. Meanwhile, very large enterprises are slightly more likely to have developers buy into the company ethos: 20% of developers working at these organisations wish to contribute to something that has the company’s backing to succeed.
Non-enterprise developers tend to favour reasons relating to improving their skill set: 47% wish to learn to code better. Compare this to large enterprise developers, of whom 42% are motivated by learning to code better. Around one-fifth of all developers are united by the desire to build community support; while just under a third of all developers advocate for a more open software society, contributing to corporate-owned, open-source projects because it’s “something bigger than me”. However, moving from attitudes to economic engagement, the differences between large, very large, and non-enterprise developers tend to be more pronounced regarding practical engagement within an organisation.
“Those who control the money”
There are many tiers of enterprise developers: these range from those high up in a business hierarchy that makes or influences purchasing decisions, down to developers who are not involved at all in these selections. The breakdown of developers according to economic decision-making power within an organisation differs across the non-enterprise/large enterprise/very large enterprise divide.
Just over a quarter of large enterprise (27%) and non-enterprise developers (26%) are economic decision makers for their team or company, with the ability to make the final selection decision for tools, approve expenses on tools and components, and/or approve the overall team budget for tools. Not all of these economic decision-makers can approve budgets or expenses, but whether they are decision-makers for their team or company, they are all empowered to make tool selection decisions.
Comparing these segments to very large enterprises, where only 18% of developers can make purchasing decisions, demonstrates that decision-making power tends to concentrate at the top of the hierarchy in larger organisations. In agreement with this analysis, 31% of developers who work at enterprises are separate from purchasing decisions. In comparison, this drops to 25% and 17% for large and non-enterprise developers, respectively.
So are you an Enterprise Developer? Did you see yourself fitting in the data above? Then you probably are an Enterprise Developer. If you want to help the ecosystem grow, you can join our community of software creators by clicking this link.
As technology advances and becomes mainstream, more enterprises are now incorporating virtual reality in their project planning after years of development. When talking about VR technology, we often think they are associated with entertainment and video games. However, the continuous popularity of VR makes it beneficial across all industries. Experts said we could expect the VR market to grow from $6.3 billion in 2021 to $84 billion by 2028.
At first, many are skeptical about how VR will impact the business industry. But the arrival of tech giants like Google, Facebook, HTC, and Samsung in the VR scene demonstrated and guaranteed that this technology could be the future. Enterprises now see that adopting VR technology is a helpful way to create innovative and sustainable workplaces. This article will tackle the top 5 reasons enterprises should adopt virtual reality.
Why Should Enterprises Adopt Virtual Reality?
Enterprises see a lot of possibilities in VR, including the ability to revolutionise work processes, provide customers with world-class experiences, train staff members, and more. A person may perceive and engage with an immersive virtual environment thanks to VR technology. To further understand, here’s a deep-dive:
Immersive Training in Virtual Worlds
Training your employees using VR technology is an excellent way to let them gain experiences safely. The ability of virtual reality to create immersive real-life scenarios allows employers to be risky when it comes to giving training exercises, as there will be no repercussions in the process. When something goes wrong, all you have to do is to push the reset button.
The 3D simulation of VR technology helps employees to be more engaged and participate actively in training. Startups are prone to cyber threats. That’s why navigating data loss prevention through simulations is the best way to understand security tips for startups without any potential risks.
They are already applying this in the medical field, where surgeons do complex operations on children. Even Walmart does simulation training to prepare employees for Black Friday. Regardless of industry, VR technology offers an engaging, cost-effective platform for training employees.
Effective Prototyping
Developing products can be costly, time-consuming, and risky as it involves a lot of processes and conceptualization without the assurance that they will be successful. Using VR technology will change all of that.
Virtual reality allows enterprises to utilize these immersive real-life scenarios to visualize and design their products. It prevents wasting your time and money by providing a set of approaches and tools you can use to explore ideas and test the product with less resource usage as you are working on an experimental model. Using VR technology can help avoid complications as you can easily modify and redesign your products whenever you detect problems.
Improved HR Practices
VR’s seamless, universal connectivity will fundamentally alter how we manage human resources. With access to workers worldwide, hiring procedures will change to ensure employers choose only the best candidates. Prospective candidates can virtually shadow their possible roles as part of the interview process to understand their daily duties. Additionally, one can adopt VR to a range of interactive HR workshops.
Using VR technology can make the recruitment process easy. Large and small-scale companies can utilise this by creating remote offices to interview applicants, hear their responses, and observe their body language.
Redefined Marketing Strategies
By implementing the “try before you buy” idea, businesses may alter advertising and enhance customer engagement. VR services can improve the shopping experience of many and potentially increase the number of visitors to e-commerce sites. With VR, customers can visually “try on” things to see if they match their needs. There is no more buying the incorrect size or style. And when you are ready to make the purchase, you’ll be able to do it virtually.
Volvo has already executed this idea by as offers a VR test drive on your phone. Lacoste has already followed the lead with their AR mobile app, where customers can try shoes virtually. Moreover, VR in your marketing strategy can give you an advantage over your competitors, providing efficiency that helps you stay ahead of the competition.
Time-Efficient and Cost-Effective
Time is money, and you may save both with virtual reality services. You can more effectively create and test your products using VR for prototyping, reducing the need for post-production testing. You can save money on corporate travel expenses and promote employee safety by holding meetings virtually.
Bottom Line
There are boundless possibilities in using VR technology for your enterprise. Given the fact that top industries consider virtual reality as part of their operations, which enables its rapid growth across all industries. Despite being a new concept for many, it is safe to say that VR technology is the future of innovative business solutions.
Virtual reality technology introduces new ways to advance corporate objectives as it develops. Now is the time for your company to establish itself as a pioneer in using this technology, as it will sooner or later gain widespread acceptance among the populace. Those left behind will find it challenging to catch up. But if your company joins in right away, it can quickly position itself ahead of the curve.
In our most recent (Q3,2022) Developer Nation survey we took a close look at the way developers engage with the Metaverse and NFTs. We explored different levels of engagement (from simple interest to actually working on them) and explored different patterns of interest across other technologies as well as on a regional level. Today we take a look at how developers are engaging with the Metaverse and NFTs.
“50% developers are interested or involved in the Metaverse some way”
The data shows that developers appear to be more interested in the Metaverse compared to NFTs. Possibly because Developers involved in NFTs are also highly involved in other projects, especially cryptocurrencies like bitcoin.
“45% of developers involved in NFTs are highly involved in other blockchain projects and 55% are working on cryptocurrencies”
There are more developers learning about the Metaverse (50%) than they are learning about NFTs(20%). Also, developers working on the Metaverse identified Quantum Computing as the no 1 technology they wish to learn about.
Here’s a video of us discussing the infographic.
In terms of regional distribution, most developers working on the Metaverse and NFTs reside in North America.
The blockchain ecosystem has seen unprecedented growth with many companies now looking to hire Web3 developers with experience in cryptocurrency.
The web is undergoing dramatic changes. Of the latest changes is Web3, a new version of the internet, which is quickly expanding in size and popularity.
As it’s still a new idea, finding Web3 engineers is a tedious task. It’s mostly cryptocurrency and blockchain enthusiast developers who are mastering this new form of the web, which is destined to change the internet in ways we have yet to understand.
Before we talk about how to hire Web3 developers, let’s talk about Web3 itself.
What is Web3?
Web3, unlike its predecessors, Web 1.0 and Web 2.0, is based on peer-to-peer (P2P) decentralized networks, such as blockchain.
Blockchain is a hallmark building block of cryptocurrency, and Web3 is a product of both. Web3 developers create apps that aren’t limited to a single cloud server but are instead distributed on a blockchain or decentralized P2P network that isn’t controlled by a central authority.
In simpler words, Web3 is similar to how most cryptocurrencies work based on the blueprint of Bitcoin.
How does this differ from the existing Web 2.0? While Web 2.0 is user-centric (most of the content is user-generated), Web3 has taken this approach to the next level by introducing more autonomy and keeping things more transparent and relatable. In Web3, computers are heavily involved in interpreting information on a human level.
Web3 has many additional attributes that distinguish it from Web 2.0 — it’s verifiable, self-governing, permissionless, distributed, stateless, and has built-in payment systems (cryptocurrency).
This lack of transparency and verification led to Web 2.0 containing too much content and information, most of which isn’t helpful for general users. Its security is also sub-par, which is why there are too many hackers today and a marked increase in identity theft and other cybercrimes.
Any application built on Web3 would be developed and owned by the users as they help create and maintain the app, earning their stake along the way. This is just how Bitcoin operates, as miners of the currency earn Bitcoins when they facilitate transactions through computing operations.
The apps on Web3 are called “dApps,” which is short for “decentralized applications.” You can expect to hear this term more often in the near future.
An effective Web3 developer is one who is familiar with the concept of Web3, is proficient in the relevant programming languages, and has the right tech stack to back their development work.
What Tech Stack Do Web3 Developers Use: Skills and Tools
The tech stack, or developer stack, refers to the technology or tools the developer uses and excels at. A good example is the MEAN stack, which is comprised of MongoDB, Express.js, AngularJS/Angular, and Node.js.
For Web3, there’s a specific tech stack that the developer you’re hiring must use.
Web3 SDKs/dApps
The Web3 SDKs, or libraries, are essential for building any dApp. These libraries support the interaction with a blockchain, such as Ethereum, and conduct transactions.
The most important of these SDKs are web3.js, web3.py, and ethers.js. These are also linked with smart contracts, which are explained further below.
Cryptocurrency Wallets
If you’ve ever dabbled with cryptocurrency, you probably already know what a crypto wallet is. It holds your cryptocurrency and can be either a digital or hardware wallet. For Web3 applications, a wallet is required to facilitate transactions.
There’s a fee for the writing operations on the blockchain, which must be drawn from the wallet. For Web3, the developer can create an ETH (ethers) wallet using any of the common languages, such as Python, JavaScript, or Ruby. Alternatively, developers can use an existing wallet platform like MetaMask.
Nodes
Nodes make up the blockchain and retain a copy of it. These are also called Web3 providers for this reason, as the application’s connectivity with the blockchain hinges on these nodes. Without these nodes, dApp cannot communicate with the smart contracts.
The most commonly used provider is QuickNode, which provides a global network of nodes powered by speedy operations.
Smart Contracts
In the crypto world, smart contracts are pieces of code that live on the blockchain. Written in Solidity, these cannot be altered or mutated. This code runs when the conditions for it to run are met.
This automates the workflow when the participants of the blockchain confirm an outcome. These smart contracts (pioneered by Ethereum) also helped give Ethereum the edge over Bitcoin in terms of transaction speed.
Web3 Developer Salaries
The average yearly salaries for Web3 developers can vary greatly depending on what you’re hiring them for. Here’s an overview of the most popular Web3 expert roles and their salaries.
Blockchain Developer
According to ZipRecruiter, the average yearly salary for a blockchain developer is $154,550 or $74 per hour. Note that this average is mostly drawn from larger companies. If you add smaller companies and startups into the mix, the average yearly salary drops to $80,000 per year.
Since the term “blockchain developer” is a broad descriptor, the associated salaries tend to vary. In general, there are two types of blockchain developers: blockchain software developers and core blockchain developers.
Blockchain software developers: Blockchain software developers are responsible for creating applications based on blockchain protocol and architecture. One of their main duties is to create smart contracts, which are programs stored on a blockchain that automatically run when conditions are met. Small contracts are usually used to automate workflows and agreement execution so every participant will immediately know the outcome.
They also create decentralized applications (dApps) that run on the blockchain, making them comparable with web developers, who use web architects’ design and protocol to create web applications. Additionally, these software developers are responsible for the front-end and back-end development of dApps and supervising the stack that runs them.
Core blockchain developers: These blockchain developers are responsible for creating the architecture, design, and security of the blockchain system. They also:
Design the blockchain protocols
Design security patterns and consensus protocols for the network
Supervise the entire blockchain network
Despite their differences, both types of blockchain developers require a similar skill set. Here are the main blockchain developer hard skills you should look for when hiring a blockchain developer for your team:
Cryptography: Cryptography is the study of blockchain protocols that prevent unauthorised and unwanted parties from accessing your data. A popular concept in cryptography is public-key cryptography, which forms the backbone of cryptocurrency transactions. Another hot topic is cryptographic hashing, which transforms cleartext passwords into enciphered text for storage. This slows down threat actors since they’ll have to decipher these hash values if they want to exploit the passwords.
Data structures: Every blockchain developer needs to have extensive knowledge of data structures. This is because blockchain networks consist of data structures.
Blockchain architecture: Blockchain developers need to know what ledgers are, how smart contracts work, and what consensus is. They should also be familiar with all four types of blockchain architecture: consortium, private, public, and hybrid.
Web development: Blockchain developers should also know how to develop and create web apps, particularly if they’re blockchain software developers.
A variety of programming languages: Finally, your blockchain developer should have experience with at three or more of the following programming languages:
Like the rest of the roles on this list, blockchain developers need the following soft skills:
Commitment to and passion for the Web3 landscape
Interest in learning more about blockchain technologies
Client and project management skills
The ability to meet deadlines ahead of time
The ability to work in multi-disciplinary teams
Solidity Developer
The average base salary for a Solidity developer is $127,500 per year. Remote Solidity developers can earn up to an average of $145,000 per year, depending on which company they’re working for.
Solidity developers use the Solidity language to create and deploy smart contracts on Ethereum-based apps. The syntax of Solidity is similar to C and Javascript, so developers who already know those languages can quickly learn Solidity. Compared to other languages, Solidity offers multiple benefits, such as:
Statically typed programming
Accessibility to JavaScript debuggers, infrastructures, and other tools
Preciseness
With Solidity, developers can craft applications with self-enforcing business logic in smart contracts, creating a non-repeatable record of transactions. Solidity also supports libraries, a complex user-defined type, and inheritance. Thus, it’s a good choice for creating contracts for crowdfunding, voting, multi-signature wallets, and blind auctions.
Solidity developers are usually responsible for:
Integrating Solidity code across various platforms
Managing the full lifecycle of blockchain development
Ensuring blockchain integration with existing applications
Building smart contracts and ensuring that all timelines and expectations are met for finished smart contracts
Reviewing smart contracts for security and functionality
Supervising web services that use blockchain technology
Collaborating with multidisciplinary teams and product managers to discover new ideas for smart contract development
Assessing technical reviews of proposed solutions
Analyzing usage and transaction statistics to pinpoint and prioritize areas for improvement
Besides having a deep knowledge of Solidity and blockchains, Solidity developers should also have the following hard skills:
Blockchain technology, especially Ethereum blockchain
Strong background in Javascript, C, C++
Knowledge of AngularJS, React JS, and Ember JS
Portfolio experience with Ethereum testnet and mainnet
CSS/HTML/JS/React for application binary interface (ABI) integration
Experience with RESTful APIs
Experience with staking protocol implementation for liquidity pair and single-token staking
Familiar with different ways to deploy smart contracts, such as Remix, Truffle suite, and Hardhat
Experienced in staking implementing and test-driven development (TDD)
Knowledge of libraries, data structures, blockchain architecture, web development, and smart contracts
Smart Contract Developer
According to Glassdoor, the average annual salary of a smart contract developer in San Francisco, CA, is $94,674 with an average additional cash compensation of $20,950.
As their name suggests, smart contract developers are responsible for developing smart contracts for blockchain platforms. They use various programming languages, such as Solidity and Vyper, to create smart contracts, which, as we covered above, are blockchain programs that automatically run when conditions are met.
Unlike blockchain software developers who create dApps as well as smart contracts, smart contract developers are only responsible for designing and building smart contracts architecture and related tasks. As such, they have fewer responsibilities and lower salaries.
Here’s what they’re typically responsible for:
Designing, building, and deploying smart contracts architecture, yield pools, incentive structures, and strategies
Working with smart contract auditors and the rest of your IT team to implement fixes
Create, implement, and test smart contract additions and upgrades
Explore and research smart contract design implications
Most companies require smart contract developers to have the following hard skills:
Over four years of full-stack web development (client-facing apps and APIs)
Programming languages such as Solidity, NodeJS, and JavaScript
Cryptography
Experience in creating, developing, deploying, and testing smart contracts for all four blockchain architectural types
Experience with patterns that will make their Solidity code more readable and improve performance, such as:
Oracles
Pull over Push
Eternal Storage
Tight Variable Packing
Guard Check
Emergency Stop
The ability to write secure code that prevents threat actors from taking over contracts
Optimization of smart contracts
User experience (UX)
Rust Developer
There’s a lot of variation in the salaries of Rust developers.
According to ZipRecruiter, the average Rust developer earns $91,709 per year or $44 per hour. However, in certain major cities, the average salary of Rust developers is higher. For instance, the annual average salary of a rust developer in San Francisco, CA, is $106,131 with an average additional cash compensation of $11,867.
Rust developers are responsible for coding and developing web browsers, blockchain platforms and projects, servers and systems software, and operating systems in the Rust programming language. They may also be responsible for testing, debugging, and ensuring the security and safety of the systems, software, and platforms they develop.
Additional duties may include:
Collaborating with customers, management, and relevant departments to pinpoint end-user specifications and requirements
Analyzing user feedback to boost software performance
Creating technical documentation
Like Solidity, Rust is a popular language that has a wide range of Web3 applications. It’s particularly popular due to its use in the Solana blockchain, a potential competitor to Ethereum as the leading platform for dApps. As of March 2022, Solana is currently ranked ninth in market value on CoinMarketCap, making it the highest-ranked blockchain platform that uses Rust.
Most companies require Rust developers to have the following skills:
C++, since the Rust language is similar to it
Other programming languages such as Golang, Python, Java, Node.js, and React.js
Knowledge and experience with secure coding practices
Experience with network programming skills and multi-threaded programming
Familiarity with solana-web3.js, Solana’s official SDK (Rust developers use this SDK to develop Solana dApps)
The ability to create and launch Programs, which are the Solana equivalent of smart contracts
Experience with specific operating systems such as Android or Linux
Experience with certain databases, such as MongoDB and Apache CouchDB
Many organisations also prefer to hire Rust programmers who have at least three to five years of Rust coding experience since it’s a difficult language to master.
According to the Rust Survey of 2019, most Rust programmers rated their expertise as 7 out of 10 or below, even though over 68% of them wrote Rust code weekly. Additionally, 22% of Rust users indicated that they didn’t feel productive while coding Rust and the steep learning curve was the second most common reason for not using Rust on some projects.
As such, it’s important to get a good idea of how familiar and comfortable your potential hire is at Rust. Give them a few test assignments and make sure that they know how to create, test, and debug the programs and apps you want them to create.
Where to Find Web3 Developers
Whether you’re looking to hire Web3 developers for a long-term project or a small gig, knowing where you can find the best talent for this specific set of skills can substantially cut down your search time.
Web3, like cryptocurrency in its early days, is driving impressive innovation. It’s an excellent opportunity to be a part of the blockchain ecosystem and help formulate the future of the web.
Unless you live in a tech hub where you can find talent locally, it’s probably easiest to hire remote developers. Here are the best places to find these developers and Web3 engineers:
Crypto Job Boards
Even while talking about something as cutting edge as Web3, you may find the age-old approach of searching job boards to be quite convenient. However, you’ll want to choose a job board that’s known for harboring blockchain and crypto developers.
There are several recruitment websites that focus solely on crypto-related jobs. You can increase your chances of finding the right person by posting the position on more than one of these platforms.
LinkedIn is another online job board, but it’s also a social media platform. Many startups begin their talent scouting here.
Not only do you have the opportunity to post Web3 development jobs on LinkedIn, but you can also search for professionals with experience by viewing the profiles of prospective employees. Profiles present workers’ skills, experience, and education, and if you like someone, you can communicate with them directly on the website or app.
While LinkedIn is an excellent place to find a developer, it also provides a great platform for promoting your business, especially if you’re looking for financing. It offers opportunities to show off the talent you hire as well, to make your venture appear even more valuable.
Talent Marketplaces
Online talent marketplaces are another viable option when searching for Web3 developers. These usually have both remote workers and freelancers, so you’ll first need to figure out exactly the kind of worker you need.
Do you want a permanent member of the team? Do you want a contractual freelancer? These are serious considerations. For example, for long-haul collaboration, you’d likely want the developer to be an employee of the company.
There’s nothing wrong with going with a freelance developer, provided this kind of relationship meets your needs and you can find someone suitable. But if you’re looking to embed developers in your team and hire them permanently, Revelo is an excellent place to start. You’ll be connected with top-notch remote talent specializing in Web3 engineering or development, or whatever technology you need to grow your business.
One of the most significant benefits of using Revelo is that the developers are pre-screened, so the skills and experience they list on their profile are what you’ll get. Therefore, there’s no need to confirm their experience — you can just move along with the interviewing process.
How to Hire Web3 Developers
You probably don’t want to spend endless hours reviewing resume after resume and conducting dozens of interviews. At the same time, you also don’t want to miss out on good talent by overlooking their applications.
To help you pick out the best from the rest, here are some examples of job postings and some guidelines for the interviews themselves.
If you find hiring daunting, don’t worry — hiring developers doesn’t require the formal interviews, group discussions, or IQ tests that many big corporations use. If you’re all for decentralization anyway, you might as well do things a little differently than more centralized corporations.
Web3 Developer Job Post Example
The first thing you need to nail is the job post itself. Whether you choose to go with a job board, LinkedIn, or a talent marketplace, you’ll need to define the position you’re offering.
This is important because, believe it or not, many recruiters and contractors end up using the wrong terms in their posts or adding too much detail. This can cause candidates to overlook the most important requirements of the position. In these cases, you’ll end up with irrelevant resumes and often too many of them to sift through.
When you’re looking to hire Web3 developers, the post should be direct. It should address that you’re looking for a blockchain developer who specialises in Web3 development and has the right tech stack to support it.
Ideally, you would want people with experience working with blockchain to apply. So, make a list of the relevant keywords to put in your post. Those keywords will also help the post rank better on search engines, so anyone who types those keywords will see your job posting.
To help you write an immaculate job post to hire Web3 programmer, here is an example:
“We are looking for a passionate and experienced Web3 developer to help us build our project XYZ.
Our ideal candidate is someone with experience developing blockchain-based applications, especially those for Web3 (dApps). They should be aware of and use the latest technologies in crypto, blockchain, and Web3 development. With collaborative energy and willingness to learn, the right candidate will readily communicate with and assist other team members on the project.
Necessary Qualifications:
Experience with blockchain development
Experience with Solidity and dApp development
Basic knowledge of front-end development of dApps to bridge the gap between the complex blockchain and usable Web 2.0–based interface
Ability to work remotely and collaborate with the team when necessary
Responsibilities
Help create scalable applications with Ethereum blockchain
Analyse and solve problems in the development phase
Communicate and collaborate with back-end and front-end teams
Develop and optimise smart contracts
Help document the development process of the blockchain and dApps
Optimise development and implementation
Adopt best practices for Web3 and blockchain development”
You can follow this layout or create your own based on this sample structure:
Begin by briefly introducing your company or the idea of the project without giving too much away, especially if you’ve come up with a new idea.
Then, talk about what the ideal candidate should have, including the desired skills and qualifications. Don’t be too general with these but try to be straightforward. Keep in mind that Web3 is relatively new, so asking for 5 or 10 years of specific experience may be unreasonable and limit who applies. This could cause you to miss out on exceptionally qualified candidates.
Consider adding a pay rate or range in the job posting. This transparency will ensure that neither you nor the candidates waste time with interviews or application materials if your expectations are drastically different.
Lastly, list the responsibilities that the developer will have. Include both technical and non-technical responsibilities that you’ll expect of a new hire.
Remember that a clearer job description will attract more relevant applicants.
Web3 Developer Interviews
Once you have shortlisted the candidates, you can begin setting up interviews. You already established during your initial review that they meet the requirements you defined in the job post. Now, it’s time to get to know them a bit better.
You’ll most likely be conducting the interview remotely via a web meeting tool, like Zoom.
It’s always a good idea to formulate your interview questions beforehand. You should write down your most significant concerns with hiring Web3 engineers and keep each candidate’s resume handy either in paper format or on your computer screen.
Ask them how they plan on working remotely, especially if they are located in a different region with a significant time zone difference. Discuss the communication tools and methods of your team and whether they have any experience with those.
Make sure to formulate these discussions and concerns into a set of questions and create a smooth flow. For example, consider dividing the interview into technical and non-technical sections. However, it’s not necessary to stick to your script. If you think of something during the interview, you can go ahead and ask and come back to your pre-written questions after.
Lastly, discuss their salary or pay expectations. Do they prefer to be paid hourly, annually, or by the project?
Here are some sample questions you can use in your interviews:
How do you think Web3 is different from the previous versions of the web?
What blockchain projects have you been part of? What was your role?
What Web3 development tools and technology have you used before?
What coding languages are you experienced in?
How do you respond to feedback from other team members?
What testing methods do you use for your code?
What is your preferred mode of communication?
Don’t forget to keep the mood light and friendly!
Web3 Coding Challenges
No matter how well the interview went and how experienced the candidate claims to be, it all comes down to their skill.
To measure and confirm their level of knowledge and experience in Web3 development, you should conduct several small coding challenges. These can be presented to the candidates in written form or as video presentations to explain the purpose of the assignment. The task shouldn’t be longer than an hour unless you plan to pay them for their time.
If you’re hiring a developer to carry out different coding tasks, you should create different coding challenges, each dealing with a specific need of your project — for example, creating nodes, writing smart contracts, or developing the front end of a Web3 application.
Another popular approach to coding challenges is pair programming. In these tests, two developers work together on a problem, either in person or remotely. This is a great way to test their technical skills and their team and communication skills. The code wouldn’t be written by both of the developers, however. One would formulate the code or define the approach, while the other would actually write it. You can reverse the roles for a second test.
Here are some tips for developing coding challenges:
Utilise problems related to your project. You want to see the developers working in the context of your application. You should take a problem related to your project and present it as a challenge to see how the candidate might benefit your team.
Focus on the process, not the result. When examining the coding challenge results, don’t just look at whether they solved the problem. Even if they didn’t quite find the solution, their results can help you get to know how they work and whether they have the potential to learn more.
Use the same challenge. For a single job posting, use the same coding challenge to see how different candidates compare. However, don’t reuse the test once you’ve hired someone successfully.
Create from scratch. It’s best to create the challenge yourself, using a real problem related to your project. Pre-designed coding tests may not provide the best outcome, and many times the solutions have been published online, which defeats the purpose of testing. If you’re not a developer yourself, consider asking your current developers, especially those responsible for testing, to create these tests for you.
Conclusion
Hiring Web3 developers is not difficult if you search in the right places, conduct the interviews effectively, and design a solid coding test. Even if you believe a candidate is not seasoned, you can always train them. However, they should have the drive to learn more.
Revelo can solve your talent hunting issues by presenting some of the best developers from Latin America to become an integral part of your team and take your Web3 project to the next level. Contact Revelo and get matched with vetted developers within 3 days.
The Internet allows everyone to explore the web and create personal accounts on various platforms, hence, it’s safe to say that email addresses and passwords are the identity of netizens. And because of rampant cyberattacks, users aim to protect themselves from cyberattacks by frequently changing and choosing strong alpha-numeric-special-characters passwords. However, passwords alone aren’t enough to provide adequate data security nowadays.
The volume of data breaches continues to rise without fail as cybercriminals discover new and sophisticated ways to compromise unsuspecting individuals’ accounts. But thanks to recent technological advances, individuals and organisations have the opportunity to utilise multi-factor authentication systems to safeguard their identities and sensitive data.
This highly effective method reduces the consequences of poor password hygiene and prevents identity thefts. In this article, we’ll discuss everything you need to know about the importance of implementing MFA into your day-to-day online activity.
Let’s get started!
All About Multi-Factor Authentication
MFA refers to methods that authenticate whether a user’s identity is genuine. It typically requires a user to provide two or more pieces of factors for authentication purposes along with their usual account password. One of its fundamental objectives is to add several layers of authentication factors to increase security. Software based Two-factor authentication:
Along with passwords one of the most common methods used for 2fa are Time-Based-One-Time Passwords or TOTP. Most common TOTP applications are Google Authenticator and Authy.
These apps provide a unique combination of numeric keys generated by a standardized algorithm to users who sign in to platforms where 2fa is needed along with password. Quite a lot of services including GMail, Github allow adding TOTP 2fa.
Hardware based Two-factor authentication:
On the other hand, users who prefer a stronger MFA method could invest in hardware authenticators like YubiKey. This device, when plugged into your workstation generates a unique code that the service can use to authenticate your identity.
In addition, it’s a more secure system because it’s a hardware device which needs to be connected to a computer while authenticating the user account and it produces more extended codes, making it harder for hackers to guess, without physical access to the device.
3 Types of Authentication Factors
Something you know – knowledge
Of course, the most common knowledge factor is a password. However, there are other types of knowledge factors, such as passphrases, PINs, and security questions. Although these have provided excellent security in the past, they aren’t as effective now that new generations of cybercriminals have surfaced.
Something you have – possession
Possession factors encompass smartphones, hard tokens, soft tokens, smartcards, and key fobs. For example, users typically need to insert smartcards into devices, receive a One-Tip Passcode (OTP) on their smartphones, or receive unique codes from physical tokens.
Something you are – inheritance
Inheritance factors are the unique physical traits that users possess. These are verified through voice or facial recognition, retinal scans, and other striking methods.
The Benefits of Using Multi-Factor Authentication
Effective cybersecurity solution
With an MFA system in place, hackers will have a tough time entering your network because it implements strict security measures. Moreover, you can make hackers’ tasks even more difficult by using strong and complicated passwords, mainly if the MFA is used together with an SSO solution.
Verifies user identity
MFA is a valuable tool for protecting sensitive data against identity breaches and theft. By using this strategy, the security of the traditional username and password login is reinforced by another layer of protection. In addition, cybercriminals will find it difficult to crack the given TOTP because it’s a complex combination that only works for a specific period – typically within seconds or minutes.
Hassle-free implementation
By its nature, a multi-factor authentication system is non-invasive. It wouldn’t affect anything within your device’s virtual space, making way for a hassle-free implementation. In addition, it boasts an intuitive user experience, helping you quickly acclimate to the system.
Meets regulatory compliance
Organisations that use multi-factor authentication are hitting two birds with one stone – data security and compliance risk management. For example, PCI-DSS requires MFA implementation in certain situations to stop unauthorised users from accessing systems. So despite application updates with unattended consequences, MFA compliance ensures that the system remains virtually non-intrusive.
The Takeaway
Now that the world is in the digital age, Internet users continue to face cybercriminals’ deceptive tactics to gain their login credentials. And in this day and age where identity is considered the new perimeter, individuals who don’t utilise multi-factor authentication are playing with fire.
The use of multi-factor authentication is a smart and proactive choice, both for individuals and corporations. So if you’re looking for a convenient, innovative, and efficient way to add another layer of protection to your online accounts, MFA would be your best choice. Do you use any MFA technique ? If yes do tell us about it in the comment section below.
Blockchain technology has made digital currency transactions increasingly useful, practical and accessible. However, as the number of crypto users has gone up, so has the rate of cyber theft related to cryptocurrencies. That’s why it’s important to understand how to safekeep your crypto by learning about crypto wallets, how they work and what to look for in one, whether it’s digital or physical.
What is a crypto wallet?
Cryptocurrency wallets, or simply crypto wallets, are places where traders store the secure digital codes needed to interact with a blockchain. They don’t actively store your cryptocurrencies, despite what their name may lead you to believe.
Crypto wallets need to locate the crypto associated with your address in the blockchain, which is why they must interact with it. In fact, crypto wallets are not as much a wallet as they are ledgers: They function as an owner’s identity and account on a blockchain network and provide access to transaction history.
How do crypto wallets work?
When someone sends bitcoin, ether, dogecoin or any other type of digital currency to your crypto wallet, you aren’t actually transferring any coins. What they’re doing is signing off ownership thereof to your wallet’s address. That is to say, they are confirming that the crypto on the blockchain no longer belongs to their address, but yours. Two digital codes are necessary for this process: a public key and a private key.
A public key is a string of letters and numbers automatically generated by the crypto wallet provider. For example, a public key could look like this: B1fpARq39i7L822ywJ55xgV614.
A private key is another string of numbers and letters, but one that only the owner of the wallet should know.
Think of a crypto wallet as an email account. To receive an email, you need to give people your email address. This would be your public key in the case of crypto wallets, and you need to share it with others to be a part of any blockchain transaction. However, you would never give someone the password to access your email account. For crypto wallets, that password is the equivalent of your private key, which under no circumstances should be shared with another person.
Using these two keys, crypto wallet users can participate in transactions without compromising the integrity of the currency being traded or of the transaction itself. The public key assigned to your digital wallet must match your private key to authenticate any funds sent or received. Once both keys are verified, the balance in your crypto wallet will increase or decrease accordingly.
Types of crypto wallet
Crypto wallets can be broadly classified into two groups: hot wallets and cold wallets. The main difference is that hot wallets are always connected to the internet while cold wallets are kept offline.
Hot Wallets
Hot wallets are digital tools whose connection to the internet cannot be severed. Users can access these pieces of software from a phone or desktop computer to monitor their currencies and trade them. Some hot wallets are also accessible through the web or as browser extensions, meaning you can use them on a wide variety of devices.
The greatest advantage of hot wallets is their convenience. Your public and private keys are stored and encrypted on your wallet’s respective app or website, so unless they’re limited to a specific device, you can access them anywhere with an online connection. This ease of access makes them ideal for those who trade more often and are considering spending bitcoins.
Because hot wallets are always accessible online, they also face a greater risk of cyberattacks. Hackers can exploit hidden vulnerabilities in the software that supports your wallet or use malware to break into the system. This is particularly dangerous for web wallets hosted by crypto exchanges, which are bigger targets overall for crypto thieves.
PROS – Highly convenient, can be accessed from anywhere with an internet connection – Easier to recover access if you lose the private key than cold wallets
CONS – Less secure than cold wallets, vulnerable to a wider variety of attacks – For custodial wallets, your keys are kept on the exchange’s servers
Cold Wallets
Cold wallets store your digital keys offline on a piece of hardware or sheet of paper. Hardware wallets usually come in the form of a USB drive which lets you buy, sell and trade crypto while it’s connected to a computer. With “paper” wallets, your keys may be accessible via print-out QR codes, written on a piece of paper, or engraved on some other material, such as metal.
Cold storage wallets are deliberately designed to be hard to hack. Unless the wallet owner falls for some sort of phishing attack, hackers have no way of obtaining the owner’s keys remotely. For something like a hardware wallet, a thief would first have to obtain the USB drive used to access your crypto and then somehow crack its password.
This high level of security may lend itself to mistakes on the part of wallet owners. If you lose your USB drive or sheet of paper and don’t have your private key backed up somewhere, you’ve effectively lost access to your crypto. Compared to hot wallets, which make it possible to regain access through a seed phrase, recovering access on a cold wallet is impossible in most cases due to the two-key security system.
PROS – More secure than hot storage wallets due to offline storage – Many hardware wallets are supported by hot storage wallets
CONS – Transactions take longer on average – Nearly impossible to recover currencies without a backup of your digital keys
How to set up a crypto wallet
Setting up a cryptocurrency wallet is a generally straightforward process that takes no more than a couple of minutes. The first step is to determine the kind of wallet you want to use since hot wallets and cold wallets have different set up processes. Then, you’ll need to do the following:
For hot wallets…
Download the wallet. Make sure the wallet is legitimate before downloading any software. Crypto scams are becoming increasingly common and it’s important to know if the company behind a wallet actually exists. For web wallets, verify that you are on the correct website and not on a fake version of it built to steal your information.
Set up your account and security features. If you are using a non-custodial wallet, this is when you’ll be given your private key, a random 12 to 24-word string of words. If you lose or forget these, you will not be able to access your crypto. You can enable added security tools, like two-factor authentication and biometrics, during or after the set up process. The process for custodial wallets is a bit more involved, and you’ll have to undergo a verification process called Know-Your-Customer (KYC) to validate your identity.
Add funds to your wallet. For non-custodial wallets, you may have to transfer crypto from elsewhere, as not all wallets allow you to buy crypto with fiat currency directly. As for custodial wallets, you’ll need to fund them using a credit or debit card before you can purchase crypto, in some cases.
For cold wallets…
Purchase the wallet online. When buying a cold wallet, avoid third-party resellers. Buy the product directly from the developer to avoid issues, such as the device being tampered with beforehand.
Install the device’s software. Each brand has its own software that must be installed onto the hardware device before it can be used. Make sure to download the software from the company’s official website. Then, follow its instructions to create your wallet.
Deposit your cryptocurrency. You’ll need to transfer crypto into your hardware wallet from elsewhere, such as from a crypto exchange. Some wallets may have an incorporated exchange that allows you to trade crypto while the device is connected to your desktop computer or mobile device.
What to look for in a crypto wallet
When looking for a crypto wallet, it’s very important to first ask yourself:
How often do I trade? Will you be trading cryptocurrency daily or just occasionally? Hot wallets are better for active traders due to their speed and practicality. However, active traders may also benefit from a cold wallet by using it as a kind of savings account, keeping the bulk of their currencies there.
What do I want to trade? Are you looking to buy and store Bitcoin or are you interested in different types of cryptocurrency, like altcoins and stablecoins? The crypto wallet you pick should support the currencies you wish to trade and will ideally accommodate any other coins you may want to trade in the future.
How much am I willing to spend? Are you planning on accumulating large amounts of crypto? Hardware wallets are ideal for this sort of activity, but unlike hot wallets (which are mostly free), they require an upfront payment to own the wallet itself. Some hot wallets have higher crypto trading fees but offer faster transactions or greater functionality.
What functionality do I need in a wallet? Do you plan on doing anything specific with crypto beyond simply trading it? For example, traders who want to make money with their crypto passively should look for wallets that allow for crypto lending, staking and deposits.
After exploring the above questions, we put together some general suggestions for what to look for in a crypto wallet:
Supported currencies – The rule of thumb for supported currencies is “the more, the better.” Unless you’re interested in solely trading Bitcoin, we suggest you opt for a wallet that supports at least a few of the more popular altcoins.
Accessible interface – An accessible, intuitive user interface is always welcome, regardless of whether you’re a crypto veteran or a newbie. Look for wallets that don’t make you jump through hoops to start basic trading.
24/7 customer support – Although more useful for newer traders, having customer support available throughout the day is always a plus. This is especially true for wallets that undergo frequent updates and may suffer from bugs or visual glitches.
Hardware wallet compatibility – Anyone who is seriously thinking about getting into crypto should consider getting a hardware wallet. Even people who don’t trade frequently should consider a hardware wallet to safeguard their most important assets. Investors with a hot wallet that’s compatible with at least one brand of hardware wallet have an advantage, since they can default to the model(s) supported by their wallet and transfer their crypto back and forth as needed.
Investing in crypto prudently
Cryptocurrencies are a new and exciting financial asset. The idea of a decentralized currency independent of the banking industry is enticing for many. The wild price swings can be a thrill, and some coins are simply amusing.
Consider the story of Dogecoin. A portmanteau of Bitcoin and Doge, the currency was a hit on Reddit, a popular social network forums site, and quickly generated a market value of $8 million. DOGE hit an all-time high on May 8, 2021, reaching a market capitalization of more than $90 billion after Elon Musk and Reddit users involved in the GameStop short squeeze turned their attention to it.
For a more sobering example, take a look at Bitcoin — the grandparent of all cryptocurrencies. Bitcoin has experienced multiple crashes throughout its lifespan, but its most recent one has left a lasting impression in mainstream culture. Reaching an all-time high of more than $65,000 in November 2021, its market value has declined as part of a general crypto price drop, briefly dipping under $20,000 in June 2022.
While entertaining, the fact remains that cryptocurrencies are unpredictable assets and should be traded with caution. It’s important to consider the following dangers when asking yourself, “should I invest in cryptocurrencies?:”
Crypto is volatile. A cursory glance at the historical price of Bitcoin is enough to see massive peaks and depressions throughout its lifespan. Just recently, Bitcoin fell under $20,000 in June after having surpassed a value of $69,000 for a single coin in November 2021. The same goes for any other major cryptocurrency. These dramatic changes are not normal compared to the pace at which mainstream assets move.
Crypto isn’t backed by anything. Most coins do not have a natural resource, such as gold, silver or other metals, that is used to track their value. They’re not backed by the government and don’t track the growth potential of enterprises the way stocks and bonds do. This increases crypto’s volatility as a whole.
Cryptocurrencies are also speculative assets, which are riskier due to large fluctuations in price. Many active traders invest in them with the hope of making a big profit after their value dramatically increases in the near future — hopefully before a crash.
Crypto is unregulated. Governments and institutions worldwide are still grappling with how to regulate cryptocurrencies, asking: Do we need specific legislation to regulate crypto assets? Who should regulate crypto? Should it be regulated at all?
While this lack of regulation responds to the nature of crypto and its ethos of freedom, a lack of adequate regulation means consumers are not protected against many crypto crimes and scams. Ultimately, crypto must be studied and handled carefully, as its future remains uncertain.
Personal finance experts and advisors recommend investing no more than 5% of your portfolio in risky assets like crypto. Beginners should also refrain from riskier crypto trading practices, such as lending and staking currencies to generate revenue.
Crypto Wallet Glossary
Blockchain: A blockchain is a type of ledger that records digital transactions and is duplicated across its entire network of systems. The shared nature of blockchain creates an immutable registry that protects users against fraud. Cryptocurrencies are traded on the blockchain.
BTC: BTC is the currency code used to represent Bitcoin, which was created by Satoshi Nakamoto as the first decentralized cryptocurrency. Read our article on what is Bitcoin to find out more.
Foundation for Wallet Interoperability (FIO) Network: The FIO was established in the “pursuit of blockchain usability through the FIO Protocol.” The FIO protocol is meant to improve the scalability of the blockchain and develop a standard for interaction between various crypto-related entities.
Hierarchical Deterministic (HD) account: HD accounts may be restored on other devices by using a backup phrase of 12 random words that’s created when you generate the wallet.
Light client: Also called light nodes, light clients implement SPV, a technology that does not require downloading an entire blockchain to verify transactions. Depending on the currency, a full blockchain could be anywhere from 5Gb to over 200Gb. Thus, light clients tend to be faster than regular clients and require less computing power, disk space and bandwidth. Mobile wallets almost always use light clients.
mBTC: A common exchange value, mBTC is short for millibitcoin, which is one-thousandth of a bitcoin (0.001 BTC or 1/1000 BTC)
Multi-signature: Multisig for short, wallets with this feature require more than one private key to sign and send a transaction.
Open-source: Software that is considered “open-source” has a source code that may be studied, modified or redistributed by anyone. The source code is what programmers use to adjust how a piece of software works.
Seed phrase: Newly opened crypto wallets randomly generate a string of 12 to 24 words known as a seed phrase. Users with non-custodial wallets must keep this phrase and are recommended to write it down in a safe location, since it stores all the information needed to recover access to their wallet and funds.
With all the information in this post, I believe you’re on your way to becoming an expert on crypto wallets and the measures you can take to avoid cyber theft. Until next time!
