Buy Bitcoin On The Lightning Network
If Bitcoin is going to expand to more users, it needs to scale, but the blockchain has severe limitations in speed and memory storage. Assisting the Bitcoins scaling process, the lightning network was established as a second layer that lives on top of the Bitcoin main chain.
The lightning network allows users to lock Bitcoin into a different ecosystem, with its other rules, separate wallet addresses and making different trade-offs. Bitcoin users can use the lightning network exclusively to buy, sell and transfer Bitcoin faster and cheaper without the need to touch the main chain, making it an attractive solution for smaller payments and instant payments.
As mining fees continue to rise on the Bitcoin main chain, it makes the lightning network a far more attractive option for daily and more minor Bitcoin activity.
While these two networks exist separately, you can permanently remove Bitcoin from the lightning network back to the main chain or move main chain Bitcoin to the lightning network as you see fit.
How to buy Bitcoin on the lightning network?
If you want to use the lightning network, you will need Bitcoin that already exists on the lightning network or lock Bitcoin into the lightning network yourself by creating a channel. While creating a channel isn’t the hardest thing to do, some people want to avoid technical walkthroughs and enjoy instant access to the asset and the network.
If you’re one of those who want to avoid the complexity, your best bet would be to use exchanges that already support the lightning network. These exchanges would allow you to trade your fiat or stablecoins for Bitcoin, and then instead of extracting your Bitcoin to the main chain wallet, you send it to a lightning enabled wallet.
Not all exchanges support the lightning network, and you need to enquire with your prefered service provider before you attempt to take custody of your Bitcoin.
Note: Do NOT try to send Bitcoin to a lightning address/Lightning Invoice; you will lose your money forever.
How to take custody of bitcoin on the lightning network?
Once you’ve purchased Bitcoin on the lightning network, you can instantly remove it to a wallet of your choice. You will need to set up a lightning enabled wallet for your desktop or mobile device and generate a lightning invoice to transfer your Bitcoin to your wallet.
Note: If you’re using a custodial lightning wallet, it will be a simple transfer that should go through with very few hiccups, if any. If you’re using a non-custodial wallet, you will need to have a channel set up with liquidity so you can accept the payments.
What if I can't buy Bitcoin directly on the lightning network?
Since Bitcoin that exists on the lightning network is treated as a separate type of Bitcoin, you’ll find that not all Bitcoin exchanges support the second layer networks.
Although the lightning network continued growth, many countries still do not have local services to trade your fiat, stablecoins or Bitcoin and move it to the lightning network. In cases where your access to the lightning network is limited, there are several swap services that allow you to trade your Stablecoins or Bitcoin for Bitcoin already on the lightning network
Where can I buy Bitcoin on the lightning network?
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