So you can change Lightning to Bitcoin or pay a Lightning invoice with Bitcoin.
You have Lightning balance and want to change it to Bitcoin? Want to pay a Lightning invoice but only own Bitcoin?
We present the different providers where you can change Lightning to Bitcoin and how you can pay Lightning invoice with Bitcoin.
To run your own Lightning Node, on-chain Bitcoin is required. These on-chain Bitcoin are then used to open various channels and provide the corresponding liquidity.
This liquidity is now tied up in the various channels and can be used for receiving and sending Lightning payments.
Now it may be necessary to have Bitcoin credit again instead of Lightning. Perhaps to change those Bitcoin back into Euros or Dollars or to pay in a store with Bitcoin because Lightning is not yet accepted.
Likewise, a store or online store may only accept Lightning payments, but you only have Bitcoin.
Bitcoin per channel closing
One possibility is to simply close some channels again. After closing, the respective channel partners receive the credit again as Bitcoin credit.
Pay Bitcoin with Lightning
Instead of closing some channels, however, you can also buy bitcoin with your Lightning credit.
This process is equivalent to changing Lightning credits into Bitcoin credits. This has the advantage that the channels continue to exist.
This results in my total out-bound liquidity decreasing and my in-bound liquidity increasing accordingly.
How do you change from Lightning to Bitcoin?
The procedure is almost identical for all providers.
- Lightning Amount specified to be changed
- Specification of the Bitcoin address to which the Bitcoin are to be credited.
As these transactions take place via the blockchain, corresponding network fees are incurred. However, these fees would also have been incurred if you had closed your channel.
For the service of switching, these switching service providers charge a fee that varies by about 1%, depending on the provider.
The respective view then shows what you send and receive in return. The returned amount then includes the respective fees (network fee and exchange fee).
Where can you change Lightning to Bitcoin?
There are numerous providers who offer a switch between the different cryptocurrencies.
Accordingly, the currency pair Lightning => Bitcoin must be selected from the various providers.
The main difference is the conditions.
We tested with the featured providers how much Bitcoin we get back when we exchange 1,000,000 Sats (=0.01 BTC).
The fees were identical.
The best known providers are:
Boltz
Credit: 994418 Sats (0.01 Bitcoin Lightning = 0.00994418 Bitcoin)
Fees: 5,582 Sats
Website: https://boltz.exchange/
FixedFloat
Credit: 994418 Sats (0.01 Bitcoin Lightning = 0.00994418 Bitcoin)
Fee: 5,582 Sats
Website: https://fixedfloat.com/
How can I pay a Lightning invoice with Bitcoin?
With the above providers, we have shown how to change Lightning credits to Bitcoin. However, Bitcoin can also be exchanged for Lightning credits at all of these providers.
But how do I proceed if a store or online store only accepts Lightning payment and I only have Bitcoin?
The simplest solution is to install a Lightning Walleton your smartphone. There are some Lightning-only wallets that use Lightning exclusively. But some Lightning wallets, such as the Blue Wallet, have an internal switching function. You can load the Lightning Wallet with Bitcoin funds and then convert it to Lightning funds and pay with Lightning.
Lightning Conductor
On Lightning Conductor’s website, you can use Bitcoin to pay for a Lightning Invoice. The service is called: BTC -> LN
In the Lightning Invoice field the Lightning invoice is copied, which is to be paid with Bitcoin.
In the Return BTC Address field, enter your own Bitcoin address to which the Bitcoin will be sent back if the payment does not work.
We will then be shown a page with a QR code to which we can make the payment.
After we have made the payment, we need to click on View Status.
We get to an overview page, which shows us the respective status of the payment.
In addition, the respective status can be displayed. The test transaction performed for our test can be found at: https://lightningconductor.net/receipt/2137
Summary
Closing Lightning Channels is not mandatory if you need Bitcoin.
A good alternative is to exchange Lightning Outbound Liquidity for Bitcoin funds.
This way, the channels are preserved and you can dispose of the credit. You save the fees for closing a channel.
This “saving” is lost, however, as you have to pay a small fee to change.
If it was intended that the channel would be reopened at a later date, then network fees would have been incurred again. The sum of the network fees should then be higher than the switching fees.
But when choosing the right switching service provider, you should compare in advance, as the fees do vary considerably.
