Can you earn passive income running a Lightning node?
The prerequisites to run a Bitcoin Lightning node include an amount of Bitcoin to fund your Lightning channel, fiat money to buy the hardware equipment(s), and a Lightning-compatible wallet.
Remember that Lightning nodes are non-mining nodes, which means you aren’t mining Bitcoin but are vital to validating Bitcoin blocks. Validation Nodes are the most common name for these. MyNode and Umbrel are two of the most popular specialized hardware options for validation nodes. In just a few simple steps, you can set up a new myNode device.
To begin, download the myNode image for your device type and follow the instructions on the download page to flash it to an SD card. After that, turn on the device and connect an external SSD. You’ll be asked to type in your product key. You can select that option if you’re using the Community Edition. Otherwise, enter the product key that was emailed to you or that you can find on the bottom of your device.
The device will then start synchronizing the Bitcoin Blockchain! Depending on your device and network capacity, this process could take several days. The web interface of the myNode device will show you the current synchronization status. The device will automatically keep connected with the Bitcoin network and display the main application page once the initial sync is completed.
The primary myNode home page will appear once your myNode device is ready. If you are comfortable with Linux, you can connect to your myNode device through SSH. You can connect to the gadget using its IP address or hostname.
Use the default credentials as Username: admin and Password: bolt (it is recommended to change your password) to start using all the features myNode has to offer. The next step is to create a Lightning wallet on your myNode. Go to the main myNode page and click the “Lightning Wallet” button to create the wallet. After that, click “Create Wallet” to get a seed phrase.
This phrase is crucial, and anyone who knows it can access your money. Make a note of this sentence as a backup, and don’t tell anyone! After you’ve written down your seed phrase, click “Continue.” Re-enter your seed phrase on the next page to ensure your backup was generated correctly. To make your wallet, click “Create.”
If your phrase is correct, you will be redirected to the main Lightning page, where your Lightning wallet will begin syncing and setting itself up. The Lightning wallet should be ready in a few minutes, and you should see a page similar to this: