What is Lightning Network?
Lightning Network adds a layer to Bitcoin’s blockchain and enables users to create payment channels between any two parties on that extra layer.
Note: Bitfinex supports deposits of Bitcoin via Lightning Network.
How to deposit Bitcoin via Lightning Network at Bitfinex
To deposit Bitcoin via Lightning Network, you will firstly need to generate an invoice.
- To do it, log in to your Bitfinex account.
- Then, go to the Bitcoin (Lightning Network) deposit page.
- Enter the amount you wish to deposit; you can also use the measuring tool above to drag the figures.
Note: Invoice amount must be greater or equal to 0.000001 BTC and smaller or equal to 5 BTC.
- Here, select the wallet you want the funds to be deposited to. You can always transfer the funds between your wallets at any time.
- And finally, click the Generate Invoice button.
- Well done! Now you have created an invoice, and you need only copy the displayed invoice using your Lightning Network wallet or scan the QR code to complete the transaction.
- Once your deposit is detected (this might take 2-3 mins), you will see a “Deposit is complete” message pop-up, and your deposit will be visible on your Deposits page.
How to convert between LN-BTC and BTC?
To withdraw Bitcoin using Lightning Network, you will need to convert BTC to LN-BTC. This is a free process and is only used when making withdrawals from Bitfinex.
You can use Bitfinex’s currency conversion tool that can be found on the Wallets page. This enables you to instantly convert BTC to LN-BTC and vice versa.
How to withdraw Bitcoin with Lightning Network
To withdraw Lightning Network Bitcoin (LN-BTC), you will need to:
- Generate an invoice in your receiving wallet.
- Paste the invoice into the corresponding field on the LN-BTC withdrawal page.
- Select the wallet that the funds will be taken from.
- Click on Request Withdrawal.
Note: Once the connection is established, your withdrawal will be sent.
If you have any questions, you can always contact Bitfinex Support for assistance.