Welcome to Bitso's Help Center! We’re excited to offer bitcoin transactions via the Lightning Network, making it faster and more affordable to send and receive bitcoin. Here’s everything you need to know about using Lightning at Bitso and how you can benefit from it.

1. What is the Lightning Network?

The Lightning Network is a Layer 2 technology built on top of the Bitcoin blockchain that allows for faster and cheaper transactions by processing them off-chain and later consolidating them into the main Bitcoin blockchain. This makes Lightning ideal for smaller, everyday transactions, enabling quick payments with lower fees.

Think of the Lightning Network as a fast lane on the Bitcoin highway. Instead of waiting for each transaction to be verified by miners on the main network, the Lightning Network enables transactions to happen almost instantly between users.

2. Why Use the Lightning Network?

With Lightning, you get:

• Instant Transactions: Payments are almost immediate.
• Lower Fees: Great for small transactions, as fees are much lower than those on the main Bitcoin network.
• More Access: Lightning expands the possibilities for microtransactions, making bitcoin more practical for everyday use.

Here are some examples:

• Sending Tips or Donations: If you want to send a small amount to a friend or a creator, Lightning makes it affordable and quick.
  
  
• Paying for Goods and Services: Businesses that accept Lightning payments can receive funds instantly without high fees.

3. How to Use the Lightning Network at Bitso

Sending bitcoins via Lightning:

1. Open your Bitso app and tap on Send with the symbol (↑)

2. Choose Cryptocurrency and select Bitcoin.

3. Choose Lightning as your transaction method.

4. Enter the recipient’s Lightning invoice 

5. Confirm your transaction. That’s it – your bitcoins are on their way!

Receiving bitcoins via Lightning:

1. Open your Bitso app and tap on Deposit with the symbol (↓)

2. Choose Cryptocurrency and select Bitcoin.

3. Choose Lightning as your transaction method.

4. Enter the amount of BTC you want to receive, or simply instruct the sender to enter that amount.

5. Generate a Lightning invoice to share with the sender.

6. Once they complete the transaction, the bitcoins will be in your account almost immediately.

4. Important Things to Know

• Availability: Not all exchanges and wallets support Lightning yet, so ensure the recipient can receive Lightning payments before sending.
• Limits: The Lightning Network is ideal for small transactions, as it was designed to process fast and affordable payments. Check your app for specific transaction limits, as these can vary based on factors such as channel capacity, available liquidity, and other network restrictions.
• Fees: Lightning fees are lower than on the main Bitcoin network, but there may still be a small fractional cost. 

FAQs

1. What is the difference between regular Bitcoin transactions and Lightning transactions?

Regular Bitcoin transactions happen directly on the main blockchain and can take 10 minutes or more to process, often with higher fees. Lightning transactions are processed off-chain and are almost instant, with much lower fees, making them ideal for smaller payments.

2. What is the minimum amount I can deposit or withdraw with Lightning on Bitso?

The minimum amount for Bitcoin Lightning deposits and withdrawals is 0.00000001 BTC.

3. Do I need a special wallet to use Lightning?

Not at Bitso! We’ve integrated the Lightning Network directly into your Bitso wallet. Just select Lightning when sending or receiving Bitcoin, and you’re all set.

4. Are Lightning transactions safe?

Yes, Lightning transactions are safe and trustless like those on Bitcoin’s blockchain. Although Lightning uses off-chain private channels to process transactions quickly, the settlements are recorded on the main Bitcoin network periodically. This setup adds an extra layer of security to ensure transactions are safely finalized on Bitcoin's blockchain.

5. Can I switch between regular Bitcoin and Lightning transactions?

Absolutely! Simply select the method you prefer for each transaction in your Bitso app.

Want to know more about Lightning?

Feel free to check out this video: Lightning Connections with Lightspark and Bitso

Disclaimer

This Help Center is for informational purposes only and does not constitute investment advice. We strongly encourage you to conduct thorough research (DYOR) to understand how the Lightning Network works and assess if it aligns with your needs and goals. Always make sure to consult reliable sources, and remember that while Lightning offers unique benefits, it’s important to consider the broader context and usage of bitcoin.