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How Do I Get Started with a Self-Custodial Lightning Network wallet?
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How Do I Get Started with a Self-Custodial Lightning Network wallet?

Gustavo Flores Echaiz

By Gustavo Flores Echaiz2025-01-27

Looking to sell Bitcoin in Mexico or pay directly to a bank account through Swapido, but don’t have a Lightning Network Wallet yet? This guide is for you.

The Lightning Network is a “layer two” decentralized protocol that enables instant and low-fee Bitcoin transactions—ideal for everyday use. Think of it as Visa or Mastercard, but for Bitcoin payments, If you’d like more background, learn how the Lightning Network works.

In this article, we’ll walk you through getting your Bitcoin ready to spend over the Lightning Network if you currently have Bitcoin on-chain. If you have USDT or another cryptocurrency, see our other blog post for that process.

Here’s the brief outline:

  1. Download a Wallet: Phoenix
  2. Fund your Lightning Network Wallet
  3. Pay a Bank account in Mexico with Lightning and Swapido

Ready? Let’s dive into each step.

How to Download a Lightning Network Wallet

Using the Lightning Network requires a Lightning-enabled wallet. There are two main types:

  • Custodial wallets: A third-party service manages your private keys (easier to set up but less control).
  • Self-custodial wallets: You control the private keys (more secure, but slightly more complex to use).

Phoenix – Non-Custodial

We recommend Phoenix if you’re looking for a user-friendly, self-custodial Lightning wallet. Only you have access to your funds, and you’ll need to back up a 12-word seed phrase. If you lose both your device and your seed phrase, there’s no way to recover your wallet.

Setup Steps

  1. Download Phoenix on iOS or Android.
  2. Open the app.
  3. Tap “Next” twice, then tap “Get started.”
  4. Tap “Create new wallet.”
  5. Tap the Settings Icon (top-left).
  6. Tap “Recovery Phrase.”
  7. Read the instructions, then tap “Display Seed.”
  8. Write down your 12-word seed phrase and keep it safe.

That’s it—your wallet is ready to receive funds.

Alternatives

  • ZBD.gg: Great option for users in the US, where Phoenix is unavailable.
  • coinos.io: A web-based custodial wallet—no mobile app needed.
  • Prefer Custodial? See our other blog post for a guide with Wallet of Satoshi (WOS).

How to Fund Your Lightning Network Wallet

If you already have Bitcoin on-chain, you can easily move it into your Phoenix wallet. Below, we’ll walk you through the steps.

Steps to Fund Phoenix Wallet with On-Chain BTC

  1. Tap “Receive.”
  2. Swipe right (or tap the bottom-right arrow) to display an on-chain address.
  3. Copy the on-chain address shown in the app.
  4. Send your on-chain Bitcoin to that address.

After 3 confirmations (usually around 30 minutes, depending on network conditions), your BTC will be available in Phoenix and ready to spend on Lightning.

You’re now ready to use Swapido. Continue to the next step to learn how to pay with Lightning.

How to Pay a Bank Account in Mexico with Lightning and Swapido

In this section, we’ll show you how to use your newly installed Phoenix wallet to pay a Lightning Network invoice and send pesos to a bank account in Mexico using Swapido.

If you haven’t set up your Swapido account or completed ID verification, check our other guide for those steps first.

Steps to Pay a Bank Account Using Swapido

  1. Go to app.swapido.com/en and log in.
  2. Enter the amount of pesos you want to pay out.

You can skip steps 3-8 if you already have a recipient saved.

  1. Click “Create New Recipient.”
  2. Enter the recipient’s full legal name (or your own, if sending to your bank account).
  3. Choose between CLABE (bank account number), debit card number, or phone number.
  4. Enter the number associated with the option you chose in the previous step.
  5. (Optional) Add a tag if you want to label this recipient for future reference.
  6. Click “Create Recipient.”
  7. (Optional) Add a memo for the payment; this memo will appear on the recipient’s bank transfer details.
  8. Click “Create Swap.”
  9. Click “Open in wallet” on the new page.
  10. Click “Wallet of Satoshi” on the sliding modal. This will open Phoenix.
  11. Tap “Confirm” on Phoenix.

That’s it! You’ve successfully created a Lightning Network wallet, funded it, and paid a bank account in Mexico—using Phoenix. Congratulations!