How to Use the Bitcoin Lightning Network to Deposit and Withdraw BTC on Binance
2023-06-30 07:31
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Last updated: 10 May 2024
What is the Bitcoin Lightning Network?
The Bitcoin Lightning Network is a layer-two scaling solution built on top of the Bitcoin blockchain. It aims to enable faster, cheaper, and more scalable transactions by allowing users to create off-chain transaction channels.
What are the advantages of using the Bitcoin Lightning Network?
By enabling most transactions to be processed off-chain, the Bitcoin Lightning Network alleviates congestion on the Bitcoin blockchain, allowing for a higher number of transactions per second.
Bitcoin Lightning Network transactions are near-instantaneous as they don't require confirmation by miners. Payments can be settled within seconds or even milliseconds.
Transactions on the Bitcoin Lightning Network typically have significantly lower fees compared to Bitcoin network transactions. This makes microtransactions economically viable.
The Bitcoin Lightning Network doesn't reveal information about individual transactions on the blockchain, which could protect users’ privacy. Users can refer to their Binance web/app to check past transaction information.
How to deposit BTC via the Bitcoin Lightning Network?
1. Log in to your Binance account and click [Deposit].
2. Click [Deposit Crypto] and choose BTC.
3. You will see the available networks for depositing BTC. Choose [Lightning].
4. Enter the amount you want to deposit. Click [Create Invoice]. Please note you cannot create an invoice without entering a deposit amount.
5. You will see the invoice information. Click [Copy Invoice Number] to copy and paste your BTC deposit invoice to the invoice field on the platform you intend to withdraw BTC from. Please note that the invoice expires in 30 minutes.
6. After confirming the deposit request, your transfer will be processed. Typically, the funds will be credited to your Binance account shortly after.
How to withdraw BTC via the Bitcoin Lightning Network?
1. Log in to your Binance account and click [Assets] - [Overview] - [Withdraw].
2. Choose BTC and [LIGHTNING] as the network.
3. Under ‘Withdraw to’ - ‘Address’ - ‘Invoice’, paste the ‘Deposit Invoice’ number you have created via Bitcoin Lightning Network (see section How to deposit BTC via the Bitcoin Lightning Network? above). Ensure that the Deposit Invoice is valid and not expired (check the expiry time). Under ‘Withdraw Amount’, enter the amount you wish to withdraw. This amount must match the amount expected on your Deposit Invoice. Select which wallet to withdraw from. You will then see the corresponding transaction fee and the final amount you will receive. Click [Withdraw] to proceed.
4. You will be prompted to confirm the transaction again. Please check carefully before clicking [Continue].
If you enter the wrong information or select the wrong network when making a transfer, your assets will be permanently lost. Please make sure the information is correct before confirming the transaction.
5. Verify the transaction with your 2FA devices. After confirming the withdrawal request, please wait patiently for the transfer to be processed.
How to deposit BTC to Binance via the Bitcoin Lightning Network?
1. Log in to your Binance account and tap [Deposit].
2. Tap [Deposit Crypto] and choose BTC.
3. You will see the available networks for depositing BTC. Choose [Lightning Network].
4. Enter the amount you want to deposit. Then, tap [Create Invoice].
5. You will see the invoice information. Tap [Copy Invoice Number] to copy and paste your BTC deposit invoice to the invoice field on the platform you intend to withdraw BTC from.
6. After confirming the deposit request, your transfer will be processed. Typically, the funds will be credited to your Binance account shortly after.
How to withdraw BTC via the Bitcoin Lightning Network?
1. Log in to your Binance account and tap [Wallets] - [Spot] - [Withdraw].
2. Choose BTC and tap [Send via Crypto Network]. Then, choose [Lightning Network] as the network.
3. Paste the invoice you want to withdraw to. Enter the withdrawal amount and you will see the corresponding transaction fee and the final amount you will receive. You can also select which wallet to withdraw from by tapping the 'Available' drop down. Tap [Withdraw] to proceed.
4. You will be prompted to confirm the transaction again. Please check carefully before tapping [Confirm].
If you enter the wrong information or select the wrong network when making a transfer, your assets will be permanently lost. Please make sure the information is correct before confirming the transaction.
5. Verify the transaction with your 2FA devices. After confirming the withdrawal request, please wait patiently for the transfer to be processed.
1. Why can't I see BTC Lightning Network on the withdrawal page?
Currently, BTC Lightning Network withdrawal is only available to Binance.com users. Due to local regulations, Lightning Network is currently not available in some regions..
2. I am a Binance.com user. Why can't I see the [BTC Lightning Network] option on the withdrawal page of the Binance App?
If you’re using the Binance App, please make sure it is updated to at least v2.67.0.
3. Why is there a limit for deposit and withdrawal on the Lightning network?
This is because the Lightning network is designed for small and frequent transactions which help to solve Bitcoin's scalability issue. Moreover, each payment channel has a maximum capacity. The limit will be displayed on the deposit/withdrawal page when entering the amount.
4. Why are my withdrawals unable to be processed?
Please make sure that the amount in the BTC Lightning Network invoice is not 0 or empty.
5. How to apply for self-service recovery if my funds haven’t arrived?
