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Setting Up a Lightning Wallet

Learning Objectives

By the end of this lesson, you'll understand:

  • Why you need a Lightning wallet for Nostr
  • Different types of Lightning wallets available
  • How to choose the right wallet for your needs
  • How to connect your wallet to Nostr clients

Why Do You Need a Lightning Wallet?

A Lightning wallet enables you to send and receive zaps - instant Bitcoin payments that are a core part of the Nostr social experience. Zaps allow you to:

  • ⚡ Tip creators for great content
  • 🎯 Show appreciation with micro-payments
  • 💰 Monetize your content by receiving zaps
  • 🚀 Boost signal on important posts
  • 🤝 Support the ecosystem with value-for-value interactions

Zaps vs Traditional Social Media

Instead of "likes" that cost nothing, zaps let you put real value behind your appreciation. Even small amounts (1-100 sats) create meaningful economic signals.

Wallet Options

For Beginners: Custodial Wallets

Alby (Recommended for Web Users) - Browser extension for seamless web integration - Easy setup and user-friendly interface - Built specifically for Nostr and Lightning - Get started with Alby →

Wallet of Satoshi (Mobile) - Extremely simple mobile wallet - Great for beginners on iOS/Android - No technical setup required

For Privacy-Conscious Users: Non-Custodial Wallets

Phoenix (Mobile) - You control your own keys - Automatic channel management - Good balance of simplicity and control

Breez (Mobile) - Built-in Lightning node - More advanced features - Self-sovereign Bitcoin storage

For Advanced Users

Zeus (Mobile) - Connect to your own Lightning node - Full control and privacy - Requires technical knowledge

Self-Hosted Solutions - Run your own Lightning node (Umbrel, Start9) - Complete sovereignty - Technical setup required

Wallet Comparison

Wallet Type Difficulty Best For Platform
Alby Custodial Easy Web Nostr clients Browser Extension
Wallet of Satoshi Custodial Very Easy Mobile beginners iOS/Android
Phoenix Non-custodial Medium Privacy-conscious mobile Android
Breez Non-custodial Medium Balanced mobile experience iOS/Android
Zeus Non-custodial Hard Advanced users with nodes iOS/Android

Understanding Custodial vs Non-Custodial

Custodial Wallets (Easier)

Pros: - ✅ Very easy to use - ✅ No technical setup - ✅ Reliable connectivity - ✅ Customer support

Cons: - ❌ Company holds your Bitcoin - ❌ Can freeze your account - ❌ Privacy implications

Non-Custodial Wallets (More Control)

Pros: - ✅ You control your Bitcoin - ✅ Better privacy - ✅ No counterparty risk - ✅ True ownership

Cons: - ❌ More complex setup - ❌ You're responsible for backups - ❌ Higher technical barrier

Getting Started

Step 1: Choose Your Wallet

  • New to Bitcoin? Start with Alby (web) or Wallet of Satoshi (mobile)
  • Want more control? Try Phoenix or Breez
  • Advanced user? Consider Zeus or self-hosted solutions

Step 2: Set Up Your Wallet

For detailed setup instructions, visit the wallet's official resources:

Step 3: Fund Your Wallet

Start with a small amount ($5-20 worth of Bitcoin) to learn: - Buy Bitcoin directly in some wallets - Send from another wallet or exchange - Use your Lightning address to receive payments

Step 4: Connect to Nostr

  1. Add your Lightning address to your Nostr profile
  2. Test with small zaps to yourself or friends
  3. Start zapping content you appreciate

Lightning Addresses

A Lightning address looks like an email address (e.g., yourname@getalby.com) and makes it easy for others to zap you. Most modern wallets provide Lightning addresses automatically.

Best Practices

Security

  • ✅ Start with small amounts while learning
  • ✅ Keep recovery phrases offline and secure
  • ✅ Use strong, unique passwords
  • ✅ Enable 2FA when available

Usage

  • ✅ Begin with small zaps (1-100 sats)
  • ✅ Zap content you genuinely appreciate
  • ✅ Set spending limits in your wallet
  • ✅ Monitor your balance regularly

Troubleshooting Common Issues

"Wallet not connecting to Nostr client"

  • Refresh the page and try again
  • Check if wallet extension is enabled
  • Try a different browser or incognito mode
  • Ensure you're using a compatible client

"Can't receive zaps"

  • Verify your Lightning address is correct in your profile
  • Test by sending yourself a small zap
  • Check if your wallet is online and synced

"Zap failed to send"

  • Check your wallet balance
  • Ensure recipient has a valid Lightning address
  • Try a smaller amount first
  • Check your internet connection

Next Steps

Now that you understand Lightning wallets:

  1. Choose a wallet that fits your needs and experience level
  2. Set it up using the official resources
  3. Fund it with a small amount to start
  4. Add your Lightning address to your Nostr profile
  5. Practice sending and receiving zaps
  6. Explore different Nostr clients and their zap features
Setting Up a Relay →

Quick Quiz

Test Your Understanding

  1. What's the main difference between custodial and non-custodial wallets?
  2. Which wallet is recommended for beginners using web-based Nostr clients?
  3. What is a Lightning address and why is it useful?
  4. How much Bitcoin should a beginner start with?
Answers
  1. Custodial wallets hold your Bitcoin for you (easier but less control), while non-custodial wallets give you full control of your Bitcoin (harder but more secure)
  2. Alby browser extension is recommended for web users due to its seamless integration with Nostr clients
  3. A Lightning address is like an email address for Bitcoin payments, making it easy for others to zap you directly from your Nostr posts
  4. $5-20 worth (20,000-80,000 sats) is plenty for beginners to learn with hundreds of small zaps