Lightning enables you to send Bitcoin payments quickly and cheaply.

It's important to know that using lightning comes with trade-offs. In exchange for faster, cheaper Bitcoin payments, you often sacrifice some security.

In general, Lightning should only be used with small amounts of bitcoin. You should only ever store large amounts of bitcoin in a hardware wallet.

Check out our Hardware Wallet Guide for more info.

Not all Lightning wallets are the same. You can determine which wallet has the right set of trade-offs for you by asking one simple question:

WHAT TRADE-OFF BALANCE IS RIGHT FOR ME?

One of the innovations of Bitcoin is the ability to store it without relying on a custodian, like a bank. Self-custody wallets unlock the full power of Bitcoin.

With a self-custody wallet, you are the only one with the ability to spend or transfer your money. No one can stop you, censor you, or steal from you when you use a self-custody wallet. These are also called non-custodial wallets.

The most sovereign way to use Lightning is by running your own node.

This guide is focused on simple Lightning wallets that don't require your own node.

It's important to know that even using a non-custodial Lightning wallet, you are still trusting the wallet creator not to push a malicious app update and steal your funds.

Custodial wallets are wallets where you are not in control of your money.

These wallets are more similar to the banking system where you must trust a third party to give you access to your money. If your Bitcoin is on an exchange, you are using a custodial wallet.

Custodial wallets can seem convenient, but the custodian has the technical ability to steal all user funds at any time.

Some people prefer custodial Lightning wallets for small amounts of bitcoin because of their ease of use. Just remember: not your keys, not your coins!

CHOOSE YOUR WALLET

With all of this in mind, you can now choose the lightning wallet that has the right trade-off balance for you.