How to use wallets that enable instant transactions via the Lightning Network.
TL;DR: A Lightning Network wallet lets you send and receive bitcoin payments in seconds, with fees typically below 1% of the amount. This guide compares three open-source, self-custodial mobile wallets: Phoenix (by ACINQ), Misty Breez (by Breez) and Bitkit (by Synonym). They take different approaches to the hardest problem in mobile Lightning, channel management: Phoenix maintains a single dynamic channel resized through splicing, Bitkit opens channels to Synonym’s Blocktank node, while Misty Breez removes channels entirely by holding funds on the Liquid sidechain and swapping to Lightning on the fly. As of 2026, Phoenix charges 0.4% (minimum 4 sats) to send a Lightning payment, while Misty Breez relies on swap fees from Boltz infrastructure.
What is a Lightning Network wallet?
A Lightning Network wallet is a software application that interacts both with the Bitcoin blockchain and with the Lightning Network, Bitcoin’s payment layer. It lets you send and receive payments that settle in seconds with low fees, which makes it the right tool for funds dedicated to daily spending rather than long-term storage.
This guide compares three of the main open-source, self-custodial mobile wallets available in 2026:
- Phoenix, developed by ACINQ;
- Misty Breez, developed by Breez;
- Bitkit, developed by Synonym.
All three give the user full control of the keys, but they solve channel management in very different ways.
Phoenix, Misty Breez or Bitkit: which one should you choose?
| Phoenix | Misty Breez | Bitkit | |
|---|---|---|---|
| Developer | ACINQ | Breez | Synonym |
| Architecture | Mobile LN node, single dynamic channel (splicing) | No channels: funds held as L-BTC on Liquid, swaps to/from Lightning via Boltz infrastructure | Mobile LN node (LDK), channels via Synonym’s Blocktank |
| Send fee (LN) | 0.4%, min 4 sats | Swap fee + Liquid network fee | Routing fees |
| Inbound liquidity cost | 1% of added liquidity, min 3,000 sats (splice-in) | No channel fees; swap fees apply | Channel opening priced by Blocktank |
| Bolt12 offers | Yes | Yes | No |
| Lightning address | No native support | Yes (BIP353 supported) | No |
| Trust assumptions | ACINQ as channel counterparty and trampoline node | Liquid federation + swap provider | Synonym’s Blocktank node |
How each wallet handles Lightning channels
Phoenix runs a real Lightning node on the phone and keeps a single channel with ACINQ’s node. The channel is resized on demand through splicing: when you need more receiving capacity, Phoenix performs an on-chain transaction that enlarges the channel without closing it. To make the most of splicing, consider opening a large channel initially and sending most of the funds to an external wallet through a Lightning transaction: this leaves a channel with enough capacity to receive funds without frequent resizing.
Misty Breez, launched by Breez in April 2025 as the company’s new self-custodial wallet on Liquid (the original Breez app remains active and distributed), takes the opposite route: it removes Lightning channels entirely. Funds are self-custodied as L-BTC on the Liquid sidechain, and every Lightning payment is executed through a submarine swap (L-BTC to Lightning when sending, Lightning to L-BTC when receiving) using Boltz-based swap infrastructure. The result is that there are no channels to open, back up or restore, at the cost of accepting the trust model of the Liquid federation.
Bitkit runs an LDK-based node on the phone and buys channels and inbound liquidity from Blocktank, Synonym’s Lightning service provider. When opening a channel, Bitkit automatically provides inbound liquidity, so you can receive payments right after setup.
Fees compared (2026)
- Phoenix: sending a Lightning payment costs 0.4% of the amount, with a minimum of 4 sats. When the wallet needs to add receiving capacity, a splice-in costs 1% of the added liquidity with a 3,000 sat minimum. Sending on-chain (splice-out) costs only the mining fee.
- Misty Breez: there are no channel fees. Costs come from swaps: Boltz charges 0.1% to swap from on-chain or Liquid to Lightning, 0.25% from Lightning to Liquid, and 0.5% from Lightning to on-chain Bitcoin, plus network fees. Sending to an on-chain Bitcoin address requires a reverse swap with a minimum amount that varies with current fees.
- Bitkit: standard routing fees apply to Lightning payments; channel opening and inbound liquidity are priced by Blocktank at purchase time.
How do you set up a Lightning wallet?
Creating the wallet
- Download and install your chosen wallet: you can find the app on the Google Play Store or the App Store.
- Once installed, open the app and create a new wallet.
- To create a new wallet in Phoenix, click on Get started and then on Create new wallet.
- For Misty Breez, install the app, open it and follow the onboarding. Because the wallet has no Lightning channels, there is nothing to configure: the seed phrase alone is enough to restore it later.
- To generate a new wallet in Bitkit, click on Get started and then on New wallet. If you click on Advanced Setup, you can choose to add a passphrase to your on-chain wallet.
When using a self-custodial Lightning wallet that runs a node on the phone, such as Phoenix or Bitkit, you also have an on-chain wallet to access your funds in case a channel closes. (Link to the LN deep dive).
Backing up the seed and the channel state
The seed or mnemonic phrase is a series of 12 or 24 words that allows you to restore the wallet in case of device loss or app uninstallation. It is crucial to store it in a secure location and never share it with anyone. Write the words down on paper and never save them in digital format; some wallets may ask you to confirm the phrase to make sure you copied it correctly.
For Phoenix and Bitkit, which run a Lightning node on the phone, the channel backup is automatically managed by ACINQ and Synonym, respectively. For Misty Breez the backup model is simpler: because the wallet has no Lightning channels, the seed phrase alone is enough to restore the funds, and there is no channel-state file to store on Google Drive or iCloud.
The original Breez app, which is still active and distributed, follows a different model: it saves a channel-state backup file to a cloud service (Google Drive, Apple iCloud or Nextcloud) or to a personal server. If you use it, secure the cloud account with a strong password and two-factor authentication, and consider encrypting the backup from Preferences > Security & Backup > Encrypt Cloud Backup, saving the 24 words displayed on screen.
To save the seed phrase in Phoenix, click on Backup my wallet and then on Display seed.
To back up your wallet on Bitkit, go to Settings, click on Back up or Restore > Back up your wallet.
How do you receive bitcoin on Lightning?
Invoices, LNURL and Bolt12 offers
To receive payments via the Lightning Network, you must first generate an invoice.
- On Phoenix:
- Click on Receive, and Phoenix will display an invoice in the form of a QR code.
- By pressing Edit, you can request a specific amount of satoshis.
- Share the invoice with the sender by copying it to your clipboard and sending it, or simply show the QR code to the sender.
- In addition to single-use invoices, Phoenix supports the LNURL protocol and reusable Bolt12 offers.
- On Misty Breez:
- A similar process applies: the wallet generates an invoice and the incoming payment is swapped to L-BTC on Liquid. Misty Breez also supports LNURL-pay, Bolt12 offers and Lightning addresses (BIP353).
- On Bitkit:
- To create a LN invoice, you must enable the Receive Instantly option at the bottom.
- Bitkit supports receiving via LNURL-pay and LNURL-withdraw, but it does not offer a native Lightning address.
Important note:
On wallets that use Lightning channels, such as Phoenix and Bitkit, the first transaction is used to open a channel, and a fee may be charged for the opening.
Receiving on-chain
LN wallets also allow receiving bitcoin through an on-chain address: click on Receive and then on Show a Bitcoin address/Receive via BTC address.
Note: the on-chain address displayed is not controlled directly by your wallet. It is a swap address: on Phoenix and Bitkit, funds sent to it end up in a Lightning channel, while on Misty Breez they are swapped to L-BTC on Liquid.
- Fees:
- On Phoenix, you will pay mining fees associated with the swap transaction.
- On Misty Breez, the swap from on-chain to Lightning costs 0.1% plus network fees.
- On Bitkit, there are no fees for receiving bitcoin on-chain, but you can choose to pay a fee for opening a LN channel.
How do you send bitcoin on Lightning?
To send bitcoin from your LN wallet:
- Click on Send.
- Scan or paste the recipient’s invoice.
- Enter the amount of satoshis to send if requested.
- Click Pay.
You can send to a LN invoice, an LNURL request, or a Lightning address, depending on what the wallet supports.
- Fees:
- On Phoenix, sending costs 0.4% of the amount with a minimum of 4 sats.
- On Misty Breez, sending a Lightning payment involves a swap from L-BTC, with the swap fee plus Liquid network fees.
- On Bitkit, standard routing fees apply. These fees vary based on the payment path and the destination node.
What are the privacy trade-offs?
Phoenix and Bitkit operate as mobile Lightning nodes that rely on the developer’s infrastructure for payment routing (ACINQ’s trampoline node for Phoenix, Blocktank for Bitkit). Misty Breez relies on swap providers and on the Liquid federation. In all three cases, the company behind the wallet can observe metadata about your payments: without network-level protections, this may include your IP address, payment amounts and destinations.
To reduce exposure:
- enable Tor in the wallet settings where available;
- connect the wallet to your own Electrum server where supported;
- remember that Liquid transactions in Misty Breez use confidential transactions, which hide amounts and asset types on the sidechain, but the swap provider still sees the swap itself.
How do you restore a Lightning wallet?
If you lose your smartphone or uninstall the app, you can restore your LN wallet using the backup made during setup.
Steps to restore:
- Reinstall the wallet app.
- Select Restore my wallet/Restore from backup.
- On Phoenix and Bitkit: enter the backup seed words and click Import. Your wallet balance should reappear on the main screen after a few seconds.
- On Misty Breez: restoring requires only the seed phrase. Choose Restore and enter the words: funds live on Liquid, so there is no channel state to recover.
Important note: a Lightning wallet must be restored with the same application that created it. For example, you cannot create a wallet on Misty Breez and restore it later on Phoenix.
Frequently asked questions
What is the best Lightning wallet in 2026?
It depends on your priorities. Phoenix offers the most mature self-custodial Lightning experience with predictable fees (0.4% to send, minimum 4 sats). Misty Breez is the simplest option because it eliminates channel management by holding funds on Liquid. Bitkit integrates on-chain and Lightning balances with automatic inbound liquidity.
Do Lightning wallets require opening a channel?
Phoenix and Bitkit do, although the process is automated: the first payment funds a channel with the provider’s node. Misty Breez does not use channels at all; it holds funds on the Liquid sidechain and swaps to Lightning when a payment is made.
What fees does Phoenix wallet charge?
As of 2026, Phoenix charges 0.4% of the amount (minimum 4 sats) to send a Lightning payment, and 1% (minimum 3,000 sats) when it needs to add receiving capacity through a splice-in. Receiving with sufficient liquidity is free; on-chain withdrawals cost only mining fees.
Can I restore a Lightning wallet with the seed phrase alone?
Only partially. For Phoenix and Bitkit the seed restores funds because the channel backup is handled by ACINQ and Synonym respectively. For Misty Breez the seed is sufficient because there are no channels. As a rule, always restore the wallet with the same app that generated it.
What is Misty Breez and what happened to the original Breez app?
The original Breez app is still active and distributed. In April 2025 Breez launched Misty Breez, a new self-custodial wallet built on the Breez SDK – Nodeless, which holds funds on the Liquid sidechain instead of running a Lightning node with channels on the phone.
Are Lightning wallets self-custodial?
Phoenix, Misty Breez and Bitkit are all self-custodial: the user holds the keys. They still depend on the developer’s infrastructure (routing nodes, liquidity services or swap providers) for connectivity and liquidity.
