Take control of your digital wealth by running your own Bitcoin and Lightning nodes on Umbrel. This guide introduces the basics of cryptocurrency on Umbrel and shows just how easy it is to become self-sovereign. In just a few clicks, you can verify your own Bitcoin transactions, use the Lightning Network for instant, low-fee payments, and interact with the global financial system—without relying on banks, centralized services, or custodial wallets.

Running your own Bitcoin and Lightning Network nodes empowers you to participate directly in the decentralized financial system. A Bitcoin node allows you to independently verify transactions and blocks, ensuring the integrity of your interactions with the Bitcoin network. The Lightning Network, a second-layer protocol, facilitates faster and more cost-effective transactions by enabling off-chain payment channels.

By operating both nodes, you gain enhanced privacy, reduced reliance on third parties, and the ability to support the network’s robustness.

What is a Bitcoin Node?

A Bitcoin node is software that connects to the Bitcoin network to independently verify and relay Bitcoin transactions. By running a full node, your Umbrel downloads and stores the entire Bitcoin blockchain—every block and transaction since the network began.

Running a Bitcoin node allows you to:

Validate transactions and blocks yourself, without trusting third parties
Improve your privacy when using Bitcoin
Help strengthen the decentralized Bitcoin network by relaying transactions to others

In short, a Bitcoin node gives you full control over your interactions with Bitcoin.

What is a Lightning Node?

The Lightning Network is a second-layer protocol built on top of Bitcoin. It allows for near-instant, low-fee transactions by using off-chain payment channels.

A Lightning node manages these payment channels. It allows you to:

Send and receive Bitcoin instantly
Transact with minimal fees, ideal for micro-payments
Stay connected to a global network of nodes for routing payments

When you run both a Bitcoin and Lightning node on Umbrel, you’re not just using Bitcoin—you’re helping power it.

Installing the Bitcoin Node App

To begin, install the Bitcoin Node app from the Umbrel App Store. This app downloads and maintains a full copy of the Bitcoin blockchain, allowing your Umbrel to validate transactions independently.

Below is the Bitcoin Node dashboard, it provides you with real-time insights into your node’s status:

Synchronization Progress: Indicates the percentage of the blockchain downloaded.
Latest Block: Shows the most recent block number your node has processed.
Peer Connections: Number of active connections to other Bitcoin nodes.
Mempool Size: Displays the current size of the mempool, representing unconfirmed transactions.
Hashrate: Reflects the computational power being used to process transactions.
Blockchain Size: Total size of the downloaded blockchain data.

Installing the Lightning Node App

Next, install the Lightning Node app. This app enables your Umbrel to interact with the Lightning Network, facilitating instant and low-fee Bitcoin transactions. It works in conjunction with your Bitcoin node to open and manage payment channels.

Below is the Lightning Node dashboard, which offers a comprehensive view of your Lightning Network activities:

Wallet Balances:
- On-chain Bitcoin Balance: Funds available on the Bitcoin blockchain.
- Lightning Balance: Funds available within the Lightning Network.
- Total Balance: Combined total of on-chain and Lightning funds.
Channel Summary:
- Active Channels: Number of open payment channels.
- Max Send/Receive Capacity: Maximum amounts you can send or receive through your channels.
- Payment Channels List: Detailed information on each channel, including partner node, capacity, and balance distribution.