Can you earn passive income by running a Lightning Node?

Prerequisites for running a Bitcoin Lightning Node include an amount of Bitcoin to fund your Lightning channel, fiat money to purchase the hardware equipment(s), and a Lightning-enabled wallet.

Remember that Lightning Nodes are non-mining nodes, which means you are not mining Bitcoin, but are essential to validating Bitcoin blocks. Validator nodes are the most common name for these. MyNode and Umbrel are two of the most popular specialized hardware options for validator nodes. In a few simple steps, you can set up a new myNode device.

To get started, 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 will be asked to enter your product key. You can select this option if you are 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 syncing the Bitcoin Blockchain! Depending on your device and network capacity, this process may take several days. The web interface of the myNode device will show you the current synchronization status. The device will automatically stay connected to the Bitcoin network and display the main app page after the initial sync is complete.

The main myNode homepage will appear once your myNode device is ready. If you are comfortable with Linux, you can connect to your myNode device via SSH. You can connect to the gadget using its IP address or hostname.

Use the default credentials like Username: admin and Password: bolt (changing your password is recommended) 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 myNode main page and click on 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. Write this sentence down as a backup and don’t tell anyone! After writing your seed sentence, click “Continue.” Re-enter your seed phrase on the next page to ensure your backup generated correctly. To create your wallet, click “Create”.

If your phrase is correct, you will be taken to the main Lightning page, where your Lightning Wallet will begin syncing and setting up. The Lightning Wallet should be ready in a few minutes, and you should see a page similar to this: