The Lightning Network is a technology that runs on top of the Bitcoin (BTC) network. It lets you send and receive small amounts of Bitcoin almost instantly, with a lower network fee than a regular Bitcoin transaction.

How it works

A regular Bitcoin transaction is confirmed directly on the Bitcoin blockchain, which can take several minutes. The Lightning Network processes transactions off-chain first and confirms them on the Bitcoin blockchain later. That's why Lightning payments confirm almost immediately.

When to use it

• Sending a small amount of Bitcoin to a friend or a creator
• Paying a business that accepts Lightning payments
• Any transaction where speed and a lower network fee matter more than the transaction size

Things to know before you use it

• Not every wallet or exchange supports Lightning. Confirm the recipient can receive Lightning payments before you send.
• Lightning works best for small transactions. Transaction limits can vary depending on network conditions.
• Lightning transactions carry a lower network fee than regular Bitcoin transactions, though a small fee still applies.
• Lightning transactions are as secure as regular Bitcoin transactions. Payments happen through private off-chain channels, but they settle periodically on the Bitcoin blockchain.

You can switch between a regular Bitcoin transaction and a Lightning transaction each time you send or receive, directly from your Bitso account.