Lightning top-up with Alby

This article serves as a guide to setting up Pocket's Lightning top-up service, which allows you to buy sats directly into your Lightning node.

This setup is tailored for Bitcoin enthusiasts seeking direct involvement in the Lightning Network through their personal Lightning node, ideal for those with a more advanced understanding of the subject.

Requirements

To use this guide, you need your own Lightning node linked with the Alby browser extension. The official Alby guide explains how to install the Alby browser extension and link a Lightning node. If you don't have your own Lightning node yet, consider options like Umbrel, MyNode, or RaspiBlitz. Alternatively, you can use Voltage to manage a Lightning node in the cloud.

1. Start the Lightning top-up service

Open the website widget.pocketbitcoin.com to access the Lightning top-up service.

Click on "Set up now" to start the process.

2. Verify your email address

Enter the email address you want to sign up with.

Click on "Continue" to proceed.

You have now received an email from us with a confirmation code. The next step is to confirm that you have access to the email address provided by entering the 6-digit code you received. Click on "Continue" to proceed.

3. Select wallet

In the next step, you need to specify which Lightning wallet you want to receive your Bitcoin in. As you want to use Alby for this, select the "Alby Extension".

Click on "Continue" to proceed with the process.

You must now link your Lightning node with Pocket.

Click on "Connect" to continue.

Alby should now open in a pop-up window in your browser. If this is not the case, make sure that all the requirements for using this guide are met.

If your Alby extension is not already unlocked, you will be asked to enter your Alby password.

Then click on "Unlock" within the Alby extension to continue.

Once the extension is unlocked, you must confirm that interactions between the website widget.pocketbitcoin.com and the Alby extension are desired.

To do this, click on "Connect" within the Alby extension.

You will now be asked to sign a message inside the extension. This is necessary to link your Lightning node with Pocket. Payouts are only possible to your linked Lightning node.

Click on "Confirm" within the Alby extension.

If everything has worked as expected, the extension will close automatically and you will see that your Lightning node is now connected to Pocket.

Click on "Confirm" to continue with the process.

4. Select your currency

Next, you have to select your desired currency. Currently, you can choose between Swiss Francs and Euros.

Select one of the two options and then click on "Continue".

5. State your bank account

Now you just have to enter your bank account. To do this, enter your desired IBAN address from which you will make your transfers to Pocket.

Then click on "Continue".

6. Review your order

Check all your entered details in the next step.

Make sure that both your email address and your IBAN are correct, otherwise you won't be able to make any bitcoin purchases via Pocket.

Now you just have to accept the terms and conditions by clicking on the switch.

Then click on "Get payment details".

7. Execute a bank transfer

On the confirmation screen that appears, you will be shown Pocket's payment details.

Next, it's up to you to set up a simple bank transfer or standing order to Pocket. To do this, simply set up a new payment in your online banking. All the necessary information, such as IBAN, reference number, BIC and our address, will also be sent to you by email.

You also have the option of paying with a QR code. To do so, click on "QR-Bill". Important: After scanning the code, check whether the reason for payment is set correctly.

After you have explored everything, you can click on "I got it".

8. Buy Bitcoin

Congratulations, you have successfully set up an order through the Lightning top-up service and are now ready to buy bitcoin directly to your Lightning node.

In your inbox you will find the confirmation email with all the information about your Lightning order.

9. Payout email after the bitcoin purchase

As soon as we receive your payment, your money will be converted into bitcoin. After the exchange, you will receive an email in which you must manually start the payout of your Bitcoin to your Lightning node.

Click on the "Initiate payout now" button in the email. You will then be redirected to a new page.

10. Payout with Alby

If your Lightning node is well interconnected within the Lightning Network through existing Lightning channels and you have sufficient inbound liquidity, then the withdrawal can be processed through an existing Lightning channel.

10.1 Payout through existing channel

To initiate this process, click on "Withdraw".

Now, Alby should automatically open in a browser pop-up window and offer to receive the purchased amount of Bitcoin.

Click on "Confirm" in the Alby extension so Pocket can initiate the payout.

If the withdrawal was successful, your purchased amount of Bitcoin will be displayed in the Alby extension.

If the withdrawal did not succeed, you may need to request a new Lightning channel first.

10.2 Payout through new channel

If your Lightning node did not have a suitable channel, you will see the error message "No route found." In this case, Pocket allows you to proceed with the withdrawal by opening a new Lightning channel.

Click on the "Open new channel" link to proceed.

Now, Alby should automatically open up in a browser pop-up window and offer to request a new Lightning channel from Pocket.

Click on "Confirm" to request a new channel.

Pocket is now opening a new Lightning channel directly to your Lightning node. Since this requires a Bitcoin on-chain transaction, it will take some time. The so-called funding transaction typically requires 3 confirmations. By clicking on the "Funding transaction" link, you can view the transaction in a blockchain explorer and track how many confirmations it has received.

Once the channel is open, your purchased Bitcoin amount will appear in the Alby extension.

Done

Your Lightning node is now topped up.

You can top up your Lightning node with more Satoshis at any time by making a new payment to Pocket and entering the same reference number, i.e. the same reason for payment, in the transfer. After each payment you will receive a payout email and can repeat the process from step 9.

Your Lightning node is permanently linked to your payment reference. Withdrawals are only possible to your Lightning node. Even if an unauthorised person gains access to your email account, they will still not be able to steal your sats.

Thank you for your trust.