On-Chain, Lightning, and Acquiring Bitcoin

An on-chain transaction is a payment recorded directly on the Bitcoin blockchain. Common characteristics include slower confirmation times (typically around 10 minutes per block), higher fees during periods of network congestion, very high security and final settlement once confirmed, and best suited for large transfers, savings, and final settlement. The Lightning Network is a second layer built for faster Bitcoin payments, especially for small everyday purchases. Lightning is different from on-chain: on-chain uses an address and records the transaction on the blockchain; Lightning typically uses an invoice and is designed for fast settlement. Key Lightning concepts: an invoice is a payment request for a specific amount, invoices often expire and are usually paid once, and network mismatch is a common mistake (do not send on-chain Bitcoin to a Lightning invoice). Before you send or receive: confirm network (on-chain or Lightning), confirm amount, confirm recipient, and if it is new or a large amount, test with a small amount first.