The Wallet of Satoshi is a Bitcoin Lightning wallet that allows you to send and receive transactions on the base layer and the Lightning Network.
In this article, we will show you how to use the Wallet of Satoshi and set it up on your phone, as well as how to receive and send payments there. This is catered to beginners who want to get started sending some payments with Bitcoin faster and more cheaply.
What Is Wallet Of Satoshi?
The Wallet of Satoshi is a popular Lightning Network wallet utterly different from all Lightning Network wallets.
The application is a custodial wallet. Therefore, when you use a supported Bitcoin or Lightning address, the money goes to the wallet of the company that runs the Wallet of Satoshi.
Other Lightning wallets essentially give you the option of having your keys either on your device or printing them off, and they have a recovery phrase where you can actually keep custody of your assets, but not with Wallet of Satoshi. However, it is by far the easiest to use and set up.
Bitcoin Lightning Network On-Ramps
The first thing to consider with the Lightning Network is on- and off-ramps; there are two pieces to this.
The first is getting some Bitcoin, and the second is getting Bitcoin onto the Lightning Network. If you have it on the base layer (on the Bitcoin blockchain), you will not be able to instantly send it to a wallet very easily. Plus, it will be very expensive, especially with the surge in transaction fees right now.
Some centralized crypto exchanges support the Bitcoin Lightning Network, which means you can buy on the exchange and then withdraw that Bitcoin on the Lightning Network. They do all the background stuff, getting it from the base layer up into Layer 2, so you do not have to worry about that.
Is It Safe To Store My Bitcoin Long Term?
In short, no. This is not safe regarding what would usually be the case with recovery phrases or hardware devices, but it is by far the easiest to use. So, treat this as an e-wallet for Lightning payments, not for long-term storage on your Bitcoin holdings.
Lightning Network Invoice
Next, sending and receiving Bitcoin on the Lighting network differs from how it works on the Bitcoin base layer. On the Lightning Network, you have something called an invoice.
This is how it works: you have a QR code or what is known as a Lightning invoice, which is completely different from a Bitcoin on-chain transaction.
Most of the time, you must request Bitcoin and create a Lightning invoice. The invoice has two bits of information: (1) it has your wallet information, so the Bitcoin goes to your wallet, but it also usually has an (2) amount. You will put the amount you want to receive, and only then will it create an invoice.
Lightning Wallet Reminders
There are many different types of apps and implementations of the Lightning Network and different custodial solutions. Some run their own nodes, and some let you run your own node. So choose the one that is best for you.
Also, the Lightning Network is mostly still experimental, so only put Bitcoin that you are happy to spend.
Lastly, getting Bitcoin from the Lightning Network back to the base layer can be expensive sometimes. You have to use third parties, and most of these applications and exchanges will actually let you swap from Lightning back to Bitcoin.
How To Use Wallet Of Satoshi Tutorial
Download Wallet Of Satoshi On Your Phone
Wallet of Satoshi is available for both Google Play and the Apple App Store.
Setup
Open the application, and your addresses are instantly there. You do not have to deal with seed phrases or anything in particular.
This is a custodial application, meaning all of the Bitcoin here is held and owned by Wallet of Satoshi. So do not put any savings or investment money here; this is just for an easy-to-use Lightning Network wallet.
Register With An Email Address (Optional)
This wallet has no seed phrases, meaning you cannot reload the wallet on a different device if this one gets lost or broken. How you do it with Satoshi’s Wallet is like an exchange, where you can set up an email address.
You enter the email address that you want to use, and they will send you an email with a confirmation. There should be two words that are sent in your email. Input those two words, then you will have ownership of that wallet. So, if your phone gets damaged or lost, you can reload this wallet on a different device. Just download the app again and then log in with your email address.
Receiving Payments
There are two ways to receive Bitcoin into this wallet. If you go down to the bottom left-hand corner of the app and press “Receive,” you can see a Lightning and a Bitcoin symbol.
This is basically a public email address that people can use to send you Bitcoin over the Lightning Network. You can also share the QR code, which people can scan.
Final Thoughts
There are different types of Bitcoin Lightning wallets, and you should use the one that suits your needs. The Lightning Network is still very new, experimental, and primarily custodial. So it is only for coffee money and spending.
