Bitfinex allows you to not only deposit and withdraw via the Lightning Network, but also purchase Lightning channels via Bitfinex's integration with Blocktank.
What is Blocktank?
Blocktank is a Lightning Service Provider (LSP) by Synonym that aims to provide easy onboarding to the Lightning Network. With Blocktank, your Lightning node will have a reliable and uninterrupted connection to the Lightning Network. This allows you to send and receive Bitcoin payments instantly, with low fees and without relying on third-party custodians.
How to withdraw as a Lightning channel
1. Log in to your Bitfinex account.
2. Then go to the Wallet page and select Lightning Channels.
3. Accept the Terms of Service.
4. Select your Spending Balance, this will be the amount you want to be able to spend once the channel opens.
Note: The amount you enter represents the current US dollar equivalent value of the Bitcoin in your spending balance. Due to market fluctuations, the equivalent in US dollars can rise or fall.
5. Select your Receiving Capacity, this will be how much you want to be able to receive.
- The amount reflects the US dollar equivalent value of the Bitcoin you can receive at the time of the channel opening.
- To guarantee seamless sending and receiving, we recommend setting your receiving capacity to at least double your spending balance.
6. Once you have selected both your Spending Balance and Receiving Capacity you are presented with the option to either pay the channel opening fee via your Bitfinex wallet or with another wallet of your choice. You are also provided with the option to pay the invoice using either Lightning or on-chain Bitcoin.
- The one-time opening fee covers both a service fee and the on-chain transaction costs, which are handled by Blocktank.
- When paying on-chain via an external wallet, ensure you transfer the precise amount indicated on your screen. Any discrepancies in payment may require you to contact our support team for a refund.
- Your order will be available for payment only for a few minutes. If you don't pay on time, your order will expire and you'll have to create a new one.
7. Once payment has been successfully received you can continue to claim your Lightning Channel. Here you will have 2 options:
- Claiming the channel automatically by scanning the QR with any supported wallet; or
- Manually initiating the channel, in this instance you will need your Node URL which includes your Node ID or IP and port information.
8. Next, keep your node online while the channel opens.
9. Congratulations! You’ve now opened your own Lightning Channel. You will then be able to check your channel orders on the main Lightning Channels section.
Lightning Channel — Frequently Asked Questions (FAQ)
— What are the fees per payment?
Lightning payments sent and received through the channel incur a variable network fee that varies according to the conditions of the Lightning Network. This network fee includes Blocktank's fee of 1% per payment.
— What is the payment success rate?
At Synonym, a team of experts oversees the Blocktank node to ensure it keeps a high uptime and can handle a high volume of payments. However, it's important to keep in mind that the success of your payments relies on various factors intrinsic to the Lightning Network, which Blocktank cannot control.
— How long will my channel stay open for?
If you use your channel regularly, your channel might be kept open for longer than 12 weeks.
For more information, please refer to Blocktank’s Terms of Service.
If your channel fails to open or you have any questions or issues specific to buying Lightning Channels, please contact Synonym, the company operating Blocktank, at email@example.com.
For inquiries regarding regular Lightning deposits and withdrawals and other Bitfinex related topics, please contact Bitfinex Support.