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Lightning Tools

3 min read

Introduction

Practical tools for Lightning Network on Bitcoin: wallets, extensions, automation, and liquidity. The guides below map to the Lightning practice section on 21ideas.org.

Self-Custodial Wallets

Phoenix

Made by ACINQ (Lightning developer). The recommended starting point for most users. Guide: Phoenix wallet.

  • Self-custodial: you hold your keys
  • Automatic channel management: Phoenix opens and manages channels automatically via LSP (Lightning Service Provider)
  • Splicing: rebalances channels without closing/reopening (reduces on-chain fees)
  • BOLT12: newer invoice format with privacy improvements (see BIPs)
  • Tradeoff: pays LSP fees for channel opens; not zero-fee

Mutiny

Web/browser-based Lightning wallet. Runs in the browser but is non-custodial. Guide: Mutiny wallet.

  • Self-custodial: keys in your browser (can back up)
  • LSP for liquidity: automatically provisions inbound capacity
  • Nostr integration: wallet address tied to Nostr identity
  • Web-based: no app store, works on any browser
  • Tradeoff: browser-based wallets have security tradeoffs; experimental

Self-Hosted / Account Systems

LNbits

Self-hosted Lightning account system with plugin ecosystem. Guide: LNbits.

  • Runs on your own server or a trusted instance
  • Plugins: LNURL server, Lightning address, shop plugin, tipjar, NFC payments, Nostr Wallet Connect (NWC)
  • Good for: merchant setups, educational Lightning experiments, running wallets for friends/family
  • Requires a Lightning node backend (LND, Core Lightning, etc.); see running a node

Browser Extensions

Alby

Browser extension for Lightning + Nostr. Guide: Alby and Nostr.

  • WebLN: connects web apps to your Lightning wallet
  • Lightning Address: send to user@domain format
  • Nostr signing: signs Nostr events in the browser
  • Nostr Wallet Connect (NWC): allow web apps to request payments from your wallet
  • Works with: LNbits backend, Alby Hub (self-hosted), or cloud service

Bots and Automation

ZapGram

Telegram bot for Lightning payments. Guide: ZapGram.

  • Receive/send Lightning payments via Telegram
  • Group tipping
  • QR code generation
  • Good for: communities using Telegram who want Lightning integration

ZapPlanner

Tool for recurring Lightning payments. Guide: Lightning subscriptions (ZapPlanner).

  • Set up recurring payments to any Lightning Address
  • “Streaming sats” — scheduled micropayments
  • Good for: supporting creators, recurring donations, subscriptions

Liquidity Management

Lightning Liquidity Guide

For users running their own Lightning node. Guide: Lightning liquidity management. Covers:

  • Inbound vs. outbound liquidity: why you need both
  • Loop In/Out (submarine swaps): move funds between on-chain and Lightning
  • Lightning Pool: buy/sell channel capacity
  • Circular rebalancing: rebalance channels using your own funds
  • Balanced channels: best practice for routing nodes

Cleaning Bitcoin Through Lightning

If you have KYC-tainted on-chain Bitcoin and want to reduce surveillance, you can use Lightning (guide):

  1. Load KYC Bitcoin into Lightning via a channel open
  2. Route payments through Lightning (off-chain, not traceable on the blockchain)
  3. Receive fresh UTXOs via submarine swaps back to on-chain

This doesn’t achieve the same privacy as a Whirlpool-style CoinJoin, but reduces the trivial traceability of on-chain spending.

Choosing a Wallet

Use CaseRecommended Wallet
First Lightning walletPhoenix
Privacy-focusedPhoenix + own node backend
Web/Nostr integrationAlby extension
Self-hosted infrastructureLNbits
Telegram communityZapGram
Recurring paymentsZapPlanner
Running a routing nodeCore Lightning / LND + Ride the Lightning

Sources

Graph View

Backlinks