This combined course covers both Lightning wallets and operating a Lightning node. You will learn how Lightning works for daily payments, how wallet custody models differ, and what it takes to run a reliable node with proper liquidity and backups.

This course focuses on using Lightning wallets safely and effectively. You will learn how Lightning works, how wallet custody models differ, and how to choose the right setup for your use case.

Stage 1.1: What is Lightning?

The Lightning Network is a payment layer built on Bitcoin that enables instant, low-cost payments by moving most activity off-chain while still settling to Bitcoin as the final base layer.

Stage 1.2: Payments and channels

Lightning uses payment channels and routing across a network of nodes. Your wallet either connects to a service provider or a node you control to route payments.

Stage 2.1: Wallet types

Wallets can be custodial, semi-custodial, or fully self-custodial. Your choice affects privacy, reliability, and control over funds.

Stage 2.2: Safety checklist

Learn how to protect your wallet with backups, recovery options, spending limits, and a sensible amount allocation between Lightning and on-chain storage.

Advantages

• Instant payments with low fees
• Great for small everyday transactions
• Reduces on-chain congestion for small transfers

Disadvantages

• Custodial wallets may reduce sovereignty
• Liquidity and routing can fail for large payments
• Operational complexity is higher than on-chain

This course explains what it means to operate a Lightning node, how to manage channels and liquidity, and what ongoing responsibilities come with routing payments.

Stage 1.1: Node roles

A Lightning node can be private (for your own wallets), public (routing for others), or merchant focused. Each role has different liquidity and uptime requirements.

Stage 2.1: Hardware & uptime

Running a reliable node requires steady uptime, good connectivity, and a secure environment. A small dedicated device and backup power improve reliability.

Stage 2.2: Liquidity planning

You will need inbound and outbound liquidity to receive and send payments. This course covers channel funding, rebalancing, and fee strategy.

Stage 3.1: Channels and backups

Learn how to open and close channels safely, handle force closes, and keep backups so you can recover from hardware failure.

Stage 3.2: Monitoring

Monitoring your node helps you spot downtime, channel issues, and liquidity bottlenecks before they affect payments.

Advantages

• Greater privacy and sovereignty
• Higher reliability for payments
• Potential routing fee income

Disadvantages

• Requires maintenance and uptime
• Capital tied up in channels
• Operational complexity vs. wallets