In this post, we will explain how to set up a multi-currency Exodus wallet and use the lightning network without running a full node.
The Downfall of Digital “Cash” in Daily Use
One of the common criticisms of digital assets like bitcoin is that the network consumes a lot of energy.
This is why our modern payment processing systems use batching with settlement. This means "closing out your bar tab" later than when the original transaction happened.
Imagine paying for everything in cash and how cumbersome that can be. That’s what you’re doing when broadcasting a bitcoin transaction.
When a credit card holder swipes for their groceries or a restaurant bill, no money changes hands in that instant.
It takes days or weeks for the financial institution to credit a merchant and the cardholder has a deadline to “pay the bill”, typically 30 days or incur interest added on.
How to Get Started Using Exodus
Getting started on Exodus is quick, free and easy, here's how to begin:
- Navigate to https://www.exodus.com/
- Install the multi-currency wallet for your operating system.
- Write down the 12 word recovery phrase and keep it secure and private.
- Next, to deposit some BTC click the BTC tab and request (this will show your BTC address)
- Send from your desired source using the BTC address shown in Exodus
Note: Exodus is a closed source, self-custody software wallet, so users are responsible for managing your credentials and transactions properly.
This means backup your wallet and always double check transactions. (No one can help if you send the wrong amount or lose access to it.)
Next, we will cover a clever way to save costs using Bitcoin using the Lightning network, a protocol which reduces fees and makes Bitcoin more usable for small transactions.
How to Use The Lightning Network (without running a node)
If you're a high volume user, it makes more sense to batch payments in this same way on the bitcoin network to avoid paying high fees on transactions. Enter the Lightning Network.
A current limitation of using lightning network is it requires running a lightning node which is for advanced technical users.
If you're like us and still want to benefit from the technology without the technical skill, there is an option, a custodial lightning wallet.
Exodus works with a third party, Wallet of Satoshi, to maintain access for everyday users.
Consider it like a Cash App or PayPal, where you maintain a small balance in the wallet as needed.
The current limit is $200 without any Know Your Customer (KYC) which typically requires you showing an ID or Passport.
Note: The lightning wallet is only available on the Exodus mobile wallet.
This is because the lightning network is meant for reducing fees for small value transactions (which are almost always done with mobile).
Steps to get started using the Lightning Network on Exodus
- Install the Exodus wallet on your mobile device from your preferred app store
- Import your pre-existing wallet by entering the 12 word phrase you wrote down earlier (now you have both a mobile and desktop wallet set up)
- Deposit to lightning wallet from BTC wallet (it will look like a usual BTC transaction sent)
- Once confirmed, you will have a positive balance in your Exodus wallet
- Use your hot-wallet as needed for low fee smaller transactions
Congrats, you now have a brand spanking new wallet with BTC lightning network access!