A walk-through guide over solutions available to start using Bitcoin Lightning Network and the levels of use

Introduction

In this guide I will try to give more insight to a beginner into using Bitcoin Lightning Network (LN), what solutions are available, how these works, which one should choose on each user level and situations where could be used.

Many new users just jumped in without knowing all these details and which is the correct way to take in each situation.

New Bitcoin users MUST have in mind one important aspect:

Be your own bank - Think like a bank

Yes, think like a bank is not easy, after so many years of fiat slavery and forced to think only as a fiat "bank client" (aka slave). For many this term is something new and hard to understand, but in the end, using BTC I am sure you will get it. Think like a bank means you will have to divide your BTC stash in 3 important parts: HODL (savings), CACHE (management, coin control), SPEDNL (your spending pockets)

Disclaimer:

As I explained and raised a warning about the actual state and use of LN in this article I considered that is needed also a continuation of it, with more recommendations and explanations for a new LN user. Just a warning is not enough if are not provided solutions and guidance. So please read first that article if you arrive into this one without knowing that part.

Here is another MUST READ guide, with more details about each wallet app described here and their categories.

Another IMPORTANT aspect: what is Lightning Network? Here is a simple analogy with the airport.

So let's dive in starting from this diagram, explaining each level and processes could be done and what the new user should do.

BEGINNER LEVEL

This category (I name it NEWBIES) is totally for beginners, users that they never used Bitcoin and/or LN.

Why? Because it contains simple apps, with simple processes, mostly to accommodate with usage of BTC and LN and NOT focused on self custody, keys control, max privacy, non-KYC (Know Your Customer), some of them even contain ramps fiat/BTC to easy onboard a nocoiner with easy steps to buy some BTC to start.

Use cases:

Description

All these wallet apps and services are CUSTODIAL and they depend totally on connecting to a dedicated server, that the user cannot control.

Most of the services are with KYC verification process, But some are not.

Some of them are LN only and backup/restore process depends 100% of the provider.

But with all these "warnings" new users could start with these apps, with small amounts, just enough to be able to pay for few things, play around, send tips.

No matter what "privacy advocates" says, using these custodial apps is just fine, if you keep it in a low basic level. I recommend also to read this another guide about 3 levels of BTC stashing so you will understand where these are positioned.

Each one have its own features and specifics, as I described them in this guide and here is another one how to start using them.

Apps Links and description

INTERMEDIATE LEVEL

This category (I name it SPENDERS) is for users that already have a base knowledge about how BTC and LN works. Also is for those that they want to have more security and privacy for their wallets.

These wallets can/will connect to own private Bitcoin nodes. None of them are KYC or custodial and have more or less advanced features.

Use cases:

Description

I would strongly recommend this level for all those users, that want to start using LN more often, but still they do not have a high level of understanding about how LN routing, liquidity and processes works. Let's say for regular BTC users, normal usage of LN (pay here and there regularly) with no real necessity of running a full LN node with a lot of liquidity and routing.

For a normal LN user there's NO NEED to run a "routing node" just to be able to pay your stuff using LN.

These apps are actually little LN nodes, but PRIVATE. That means, the user can manage LN channels and liquidity, but these are unannounced (private) on the public LN network. These LN channels can send and receive sats just as any regular LN node, but will not "route" others payments through these private nodes (because are not "visible").

With 3-4-5 or max 10 private channels these apps can handle a large amount of payments even for a small shop. See here more details about how a merchant can handle LN liquidity with these wallets.

User can still run a full Bitcoin node, at home, to where can connect these mobile apps (onchain and/or LN nodes wallets), all these apps offer this option. Running a personal Bitcoin node is when the user understand the importance of it, for himself and for the entire network.

This intermediate level is also used as a level of coin control, swaps, funds management, ramps to buy BTC, spending and control of the funds.

Apps Links and description

ADVANCED LEVEL

This category (I name it EXPERTS) require a high level of knowledge about Bitcoin, LN, liquidity, routing, economy, technology, linux use and hardware.

Also require one important aspect: FUNDING, lots of sats to be used in channels liquidity and routing.

If you are just a beginner that let's say you have some other requirements but you still don't have large amount of BTC to be used in your node LN channels liquidity, you can skip this level from now. Just with some few millions of sats you will NOT do any "good routing", so please is better for you and for the rest of the network that you stay away.

Please don't take me wrong, I don't want to discourage you or limit or exclude you from the Lightning Network, not at all, when you are ready with all requirements you will be more than welcomed to participate. LN needs liquidity, but good liquidity so that the flow of sats will be seamless, fast, cheap and less congestion for everybody.

As much as you want to "help the network", you will NOT help it at all. As I described in this 1st part article about the state of LN, the situation is not so good and new users MUST understand and do an effort and start learning more about these things and in special how this damn LN works, in deep details.

This level IS NOT for users that didn't read at least some LN documentation. I saw many users starting their routing nodes with NO IDEA about how LN works!

So PLEASE start reading, it is very important, it is very serious, this is NOT a game that you start it and you say "ah whatever, I will just ask on the chats and forums how I would do that and that... and see where is going".

If we want to change the finance of the world with Bitcoin and LN, users and in special node operators MUST learn first and be well prepared for this journey.

Important links to LN resources (bookmark them):

A. General information and documentation about the Lightning Network

B. Guides and Video tutorials about the Lightning Network and Bitcoin nodes

More Lightning Network guides I wrote here.

Use cases:

Description

On this level, users will have powerful tools and wallet apps to be able to manage their LN nodes and liquidity.

Also will require a good level of understanding for economy in general.

Why? Because LN is a payment network, is a liquid network that needs to flow in all directions, where and when is needed. Also involved fees for the transport of the sats.

A routing node operator is like a "pipes manager", in charge of opening/closing the flux of water on those pipes that are more suited and prepared for the specific amount of water in the specific direction.

Yes, there are many tools and apps that can do that task in a more automated way, but still the user have to know how to configure it and when to change the configuration.

If a node operator also provide wallets and liquidity for his own family and friends with his node is also a very important aspect to mention that he will have to know very well how to give support for its "customers" and provide the right apps and wallets for that, also watching closer their "spending behavior" and know when and where to move the liquidity needed. This is NOT an easy task as it seems!

Another aspect to mention here: DON'T BE GREEDY!

Just because you run a routing node, it doesn't means you now can charge any high fee you want. In theory yes, you can set whatever fees you want for your traffic, but in the end is a free market and slowly your node will be "avoided" by specific wallets.

So you better concentrate in helping LN adoption now than "getting rich" quick, is all about how to fuck the banksters and not how to fuck each others...

Don't fall into the dark side...

Apps Links and description

See more tools and bundles to manage your LN node here.

See more Lightning Network guides I wrote, here.

CONCLUSION

I wish I could put even more details into each part of this guide, but as you can see, from the multitude of links inserted, most of the aspects were already explained, so please make the effort and read all the links posted.

I am not looking for followers just to visit my blog, not at all, I just want to offer a seamless experience for the new user, to get the idea of studying, reading and learn from others experiences. This is NOT about me, is about our future.

Maybe in few days/week/months I will not be online anymore, retiring alone into the mountains, but at least my writing, experiences, knowledge accumulated during all these 10+ years in Bitcoinlandia, will remain and be read and used by newbies.

This work is for THEM and for their kids, for their future, to be an example to follow and learn from my experiences.

In my closing words, I wish that all BTC/LN users will read this guide and think about it seriously, taking in consideration my advice (based on several years of testing), no matter if you already started but you feel lost, maybe this guide will give you a better view about how this Bitcoinlandia works.

As for new users that you landed for the first time into this guide, please go back and read ALL my guides, from the beginning, I wrote several, for many different situations and levels of knowledge.

Don't be afraid! I know is hard, is fucking hard to understand all these tech terms, but slowly with patience you will get through. I was like you too, many years ago, struggling, BUT I NEVER GIVE UP from learning more and more about BTC and LN.

NOTE: if you read this guide and you have friends and family that still don’t understand it, please take it, translate it or re-write it in their own words. All my guides are “open source” I do not claim or waive any copyright over them. This knowledge is free for everybody.