Lightning Network Integration for Crypto Exchanges

The Lightning Network is a way to move Bitcoin faster and cheaper, it helps to scale the Bitcoin network and allows exchanges to offer a superior user experience. Many of the largest crypto exchanges have integrated Lightning network payments including Coinbase, Binance, Kraken and many others. The benefits of Lightning are plentiful, especially lower fees for sending transactions and instant settlement. Bitvora’s solution stands apart from competitors because it offers the simplest solution that will minimize not only integration resources but also maintenance.

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How the Lightning Network is unlocking opportunities for Crypto Exchanges

Instant Deposits

Basic Bitcoin on chain payments typically take at least 10 minutes to confirm, but this can be wildly unreliable; sometimes taking up to an hour to be confirmed on the blockchain or requiring intervention to increase the fee. With the Lightning Network, payments can be delivered instantly and become spendable, without any potential hang-ups or additional steps needed for your customers or users. Your customers can deposit Bitcoin onto your platform and be credited instantly; no more waiting before they can start trading.

Lightning Fast Withdrawals

Withdrawals will also settle instantly, meaning you can offer your customers an amazing user experience, where their Bitcoin is in their external wallet in seconds. Not only can you reduce customer wait times and support tickets but you can also draw in new users who prefer to use your exchange to get their money faster and with less anxiety from waiting.

Micropayments

Micropayments aren’t possible on traditional payment processors because of the high base fee. The Bitcoin lightning network allows you to send payments of less than $0.01. No longer do you have to worry about managing UTXOs, payments are completely fungible and easy to manage.

Minimize Costs

Operating a crypto exchange comes with many risks and challenges, you shouldn’t have to be saddled with paying potentially high network fees to manage and send Bitcoin payments. With the lightning network, you have more control and certainty about transaction fees. Accepting payments with Bitvora is as low as 0.3% for Lightning payments, which gives you the freedom to not worry about the volatility of Bitcoin’s fees and the impact on your bottom line. Whether the market is hot and Bitcoin fees are sky-high, is no longer a concern when you use the Lightning Network.

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