Step-By-Step Guide to Trade via Lightning

Buying LN-BTC

Step 1: Accept offer

• Browse the offers page and select your desired Lightning offer to view its details.

1. Enter the exact amount of BTC you want to buy

2. Select a payment method from the seller's available options for this contract.

• Click the [Accept offer] button.

Step 2: Engaging in contract

• You are now on the contract page.

• On this page:

1 - The chat window with the seller is now available.

2 - You can see the Price of Bitcoin, the Amount you will buy, and the Amount you pay in fiat.

• Review the contract details and message the seller via chat that you are ready to trade.

• Click the [Accept contract] button.

• To generate the Hodl Hodl escrow address and start the contract, enter your Payment Password and 2FA code, then click [Confirm payment password and start contract].

Step 3: LN-BTC deposit

At this stage, you are waiting for your counterparty to confirm their payment password.

• Next, wait until the seller deposits Bitcoin into the multisig escrow address.

• ⚠️ Critical Warning: While the deposit is processing, you will be warned with the following message: “Bitcoin deposit is being made. Do not send any money!” Do not send fiat until this clears.

• The status will update automatically in real-time, confirming that the seller sent Bitcoin to escrow.

Step 4: Payment transfer

• Once the deposit to the escrow address is confirmed, you will be presented with the payment method details provided by the seller.

• Use the provided details to make the fiat payment to the seller.

• Once sent, click the [I've sent the payment] button.

Step 5: Payment confirmation

• Next, you will be presented with a pop-up asking to provide the Lightning Bitcoin address where you want to receive your LN-Bitcoin.

💡 Tip: We support Lightning addresses, LNURL, and Lightning invoices.

• Once you enter your Lightning Address details, click the [I've sent the payment] button to confirm.

• Now, wait for the seller to verify and confirm they received the fiat payment.

⚠️ Note on Invoices: In case you enter a standard Lightning Invoice, remember they have an expiration time. If it expires, you will be asked to provide a new one or use a different Lightning address type/format.

Step 6: Release escrow

• Once the seller confirms the payment, your LN-BTC will be automatically released and sent to the Lightning address you specified in the previous step. No further action is required on your part!

Step 7: Contract completed

• The contract is completed. You can leave feedback for the seller at this final stage.

Selling LN-BTC

Step 1: Accept offer

• As a Seller, find a buyer on the offers page and engage with your chosen Lightning Contract.

• Once you select your desired Lightning offer, you will see the chosen offer details:

• 1 - Enter the exact amount of LN-BTC you want to Sell
• 2 - Select a payment method from the Buyers available options for this contract

Click the [Accept offer] button.

Step 2: Engaging in contract

You will be shown a summary with all details of the contract you are about to start.

Review the contract details and message the Buyer in the chat that you are ready to trade.

Click the [Accept contract] button.

To generate the escrow address and start the contract, enter your Payment Password and 2FA code.

Click the [Confirm payment password and start contract] button.

Step 3: LN-BTC deposit

Next, you will be asked to deposit your Lightning Bitcoin to escrow. You will be prompted with a QR code & a Lightning Invoice address.

• You can either scan the QR code with your mobile Lightning wallet or copy the Lightning invoice address and paste it manually into your wallet.

• Verify the exact amount and address, then execute the transfer. Hodl Hodl automatically detects incoming transactions.

Step 4: Payment transfer

• Once your deposit transaction has been confirmed, the contract enters the “Payment Transfer” stage. At this point, you must wait for the Buyer to make the payment.

• The buyer will be presented with the payment details you provided and will send the fiat funds to you using the agreed method.

• Await confirmation from the buyer that the payment has been sent.

Step 5: Payment confirmation

• Crucial Step: Check your actual bank or payment account to manually verify that you have successfully received the funds.

• Once you physically confirm the arrival of the payment, get ready to initiate the release.

Step 6: Release escrow

• Click the [Release LN-BTC] button.

• Fill in your payment password and click the [Payment received, release LN-BTC] button to officially confirm the release.

Step 7: Contract completed

• The contract is successfully completed.

• You can leave feedback for the buyer at this final stage.

How to Create a Lightning Offer

To create your offer, you can click the “Create offer” button located above the offer list, as well as on the “My Offers” page.

Step 1: Choose Your Offer Type & Network

• Direction: At the top of the screen, select whether you want to Buy BTC or Sell BTC by clicking the corresponding tab.

• Network: Under the Bitcoin network options, click the Lightning network button.

💡 Note: Your offer is now configured for LN-Bitcoin.

Step 2: Set Your Price

Choose how your trade price will be calculated:

• Floating rate: The price automatically adjusts based on a global exchange rate. Select your preferred exchange (e.g., Binance) and fiat currency (e.g., USD) from the dropdowns.

• Fixed rate: Set a specific, unchanging price for your trade.

• Add margin: Click this option to add a percentage premium above or discount below the market rate.

• Applicable rate: Displays the real-time final price based on your settings.

Step 3: Set the Trade Amount

Choose how much Bitcoin you want to trade:

• Fixed amount: Set an exact, static amount for the trade.

• Amount range: Define the minimum and maximum limits for a trade.

• Use the toggle switch to input your desired amounts in either USD or BTC.

• Click Advanced settings for additional options.

Step 4: Select Payment Methods

• Select payment methods – Configure how you want to send or receive payment:

1. Click "Select payment type" drop-down

2. Choose a payment method from the available options

3. Click "Add new payment method" to include additional options (up to 10)

💡 Tip: Adding multiple payment methods increases your chances of finding a trading partner.

Step 5: Configure Offer Settings (Right Panel)

Available hours – Define when your offer is active:

• Check "24 hours access" for round-the-clock availability

• Check "Workdays only" to disable the offer on Saturdays and Sundays

• Set specific time windows if needed

⚠️ Note: An offer is automatically disabled if you have not been online for 10 days.

Location – Select "Global" or choose specific countries where your offer will be visible.

Payment window – Set the time limit for the buyer to complete payment (e.g., 90 min).

Offer description – Add details about your offer terms, conditions, or instructions for traders.

Step 6: Final Options & Review

• Enable offer after creation: Toggle ON to make your offer immediately active and public (or check the "Enabled" box at the bottom). Toggle OFF to save it as a draft.

• Make offer private: Toggle ON if you only want this offer accessible via a direct link (hidden from the public offer list).

Review the Summary Box (Right Side): Verify your Price, Amount, and Payment methods.

• Click [Create offer to buy/sell BTC] to publish.

• Click [Cancel changes] to discard.

Further Reading

• Trading Bitcoin Security Guide
• What Is the Bitcoin Lightning Network: how to use it and why we need it
• How to spend bitcoin in your everyday life
• Best ways to store bitcoin