Getting Started With Blocktank’s Lightning Channel Service on Bitfinex

Navigating the fast-paced world of digital assets requires a platform that’s not just secure, but also versatile and ahead of the curve. That’s why Bitfinex, ever committed to innovation, has collaborated  with Synonym to offer a seamless integration with Blocktank, providing users with an efficient Lightning Channel opening service.

Get Lightning Channels via our Integration with Blocktank & Synonym

Whether you’re a seasoned crypto trader or new to the digital asset space, managing your Lightning Channels and channel liquidity has never been easier. This article will guide you through the simple steps to get started with Bitfinex’s brand new Lightning Channel opening service, ensuring you have all the tools you need to make the most out of your crypto trading experience.

Utilising a Lightning Service Provider (LSP) like Blocktank, is instrumental in ensuring a smoother, more efficient experience when interacting with the Lightning Network, particularly for non-custodial transactions. The Lightning Network itself, while revolutionary in enabling fast and low-cost Bitcoin transactions, can be technically complex to set up and manage. This complexity may involve channel liquidity management, routing, and uptime maintenance, among other considerations.

An LSP takes on the responsibility of managing these complexities, acting as an optimised routing node that maintains well-funded channels, reliable uptime, and efficient routing paths. This makes it easier for users to send and receive payments without worrying about the technical nuances of channel states, liquidity, or other backend challenges. For non-custodial users, who retain control of their own private keys and therefore their own funds, using an LSP means they can enjoy the advantages of the Lightning Network without compromising on security or control.

In essence, an LSP serves as a critical infrastructure layer that democratises access to the Lightning Network’s capabilities, making it more accessible to casual users and experts alike.

Using Bitfinex’s Lightning Channel Service to Gain Access to Liquidity

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.

Notes:

• 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.

Notes:

• 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.

Want to try it out for yourself? Head over to your Bitfinex account and follow the steps we’ve outlined above! Be sure to reach out to our team on Discord or Telegram to share your first impressions getting connected to the Lightning Network with Blocktank! 

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