Although Phoenix Wallet is on your phone, the risks of losing funds by getting hacked are very low, unless you are specifically targeted by a highly skilled attacker. The most common causes of people losing their bitcoin are the following:

• Someone finds your backup.

  • This person is often someone in your close surroundings.

• You leave your phone open unattended with Phoenix wallet unlocked.

• Your phone stops working or you lose it and you are missing your backup.

• You brag about your holdings and someone attempts to take them from you through coercive means.

Be careful how you store your seed phrase, this is crucial for the recovery of your funds, but is also a target for someone wishing to steal your funds.

There are dozens of Lightning Network wallets available on the market and you can compare their features and functionalities using the Veriphi Lightning Wallets Features Comparison Table. LN Wallets range from giving you complete control but being quite hard to use, to being fully-custodial and super easy to use. However, there’s a middle-ground that we found that offers both ease-of-use and sovereignty using Partial Nodes, the major examples being Phoenix and Breez.

We have selected Phoenix Wallet since it’s a fully released app, whereas Breez is still in open beta mode. Phoenix is available on both Android and iPhone platforms.

Phoenix is a free and open-source, non-custodial Bitcoin wallet with native Lightning support developed by ACINQ.

Read about the benefits of self-custody

Phoenix Wallet benefits and limitations

• ✅Good security with password and biometrics

• ✅Easy backup and recovery

• ✅Very simple to use

• ✅Beginner friendly

• ✅Reputable and renown

• ✅Setup time: 30 minutes

• ❌Less secure than hardware wallet

What is this all for?

• Buying Bitcoin from a non-custodial exchange over the Lightning Network.

• Ability to transact with Bitcoin on mobile instantly.

• Pay as little in fees as possible for micro-payments

• Transact easily using the QR code capabilities.

There are 2 security mechanisms that prevent you from accidental loss or theft of your Bitcoin:

1. Biometrics on Phoenix Wallet

2. Seed Backup recovery code

If you lose your Phoenix Wallet

• The Seed Backup allows you to recover your Bitcoin wallets

If someone steals your mobile device

The biometrics protects unauthorized access to your Phoenix Wallet and seed, should it fall into the wrong hands.

• One of the following devices:

  • iPhone, iPad or iPod touch with iOS 13.0 or later

  • Android device

• Paper and pen for the wallet backup process

• 30 minutes of your time

• An internet connection

1. Download Phoenix Wallet from the App Store for iOS users or the Google Play Store for Android users.

2. Open the application.

   • You will be presented with a Welcome screen, followed by a technical explanation of how it works, and finally a message on the importance of backing up your funds. Read it all carefully.

3. Select Create new wallet.

This guide will cover, in order:

• Installing the mobile application

• Creating a backup

• Creating a Bitcoin wallet

• Biometrics and advanced security options

• Receiving Bitcoin payments

• Sending Bitcoin payments

By the end of this guide, you will have a Lightning Bitcoin wallet installed on your mobile device which lets you receive, send and store bitcoins. Your wallet will be encrypted using biometrics, and you will have proper backups in case your phone is damaged, lost or stolen.

This is perfect if you want to spend and receive Bitcoin regularly or rapidly and store them securely.

⛔️ THIS IS THE MOST IMPORTANT PART. TAKE A MINUTE TO READ ALL THE INSTRUCTIONS FIRST. DO NOT SKIP. ⛔️

The next step involves creating a paper backup of your Bitcoin wallet, which you will need to recover access to your Bitcoin if your phone is damaged, lost or stolen.

The backup consists of a series of 12 words generated randomly by the Bitcoin wallet.

These words allow you to recover access to your Bitcoin wallet in case anything happens to your phone.

Before creating your paper backup, please read the 3 rules below carefully.

You have to write down your backup and store it in a secure location.

1. Get a pen and a piece of paper.

2. Click on the gear icon in the bottom left.

3. Select Recovery phrase.

4. Select Display seed.

5. Write down each word in the order it is listed in.

6. Triple check to make sure.

7. Triple check to make sure.

8. Triple check to make sure.

9. Find a secure way to store it. Get creative!

   • You can do two backups and store them in different places.

You now have a Bitcoin wallet!

Phoenix Wallet is a safe method for using Bitcoin if you are not using a hardware wallet or a "multisignature" custody setup.

• The wallet is open-source and has been reviewed independently to make sure there is no malware or backdoor.

• The developers cannot have access to your Bitcoin wallet.

• The private keys that control the Bitcoin are encrypted on your phone. To spend money, you must decrypt your device with your biometrics.

• Phoenix Wallet protects you well against non-hacker people that gain access to your phone.

• Phoenix Wallet is more vulnerable to malware and hackers than hardware wallets.

• Phoenix Wallet lets you create backups easily and securely which let you recover access to your money if your phone is damaged, lost or stolen.

To send Bitcoin over Lightning, first make sure that you have an available balance. Then, follow these steps:

1. Hit Send.

2. Scan the recipients QR code using your device's camera.

   • You can also paste the recipient's invoice, enter it manually or upload an image of the QR code using the other options displayed on the screen.

3. Confirm the transaction.

For LNURL (withdrawal):

Someone that wishes to send you funds can create an invoice through which you can claim funds by scanning a QR code or entering its voucher code. To do so:

1. Scan the sender's QR code with Phoenix by hitting Send. The camera function will open. Use that to scan the QR code that is provided to you.

   • Alternatively, you can copy the voucher code and then paste it on Phoenix by hitting Send, then Manual Input.

2. Once the payment is received, it will appear in the transactions history and will also appear in your available balance.

For BOLT11:

1. Hit Receive.

2. Share the QR code that is displayed or use the copy or share icons to provide the sender with your Lightning address.

   • You can also create an invoice by hitting the edit icon. This allows you to enter a custom amount and a description that you can then share with the sender.

3. Once the payment is received, it will appear in the transactions history and will also appear in your available balance.

Phoenix Wallet offers several advanced options that will greatly improve the security and privacy of your wallet.

To begin, click on the gear icon in the bottom left of the main screen.

Security:

1. Select App access and then toggle the Require Face ID option.

   • Accessing the wallet will require your biometrics.

2. Toggle the Advanced security option.

   • With this turned on, accessing your seed through the app requires your biometrics.

   • You can only receive payments if the app is running and that you have unlocked it at least once.

Privacy:

To connect to your own Electrum server:

1. Select Privacy under Advanced section.

2. Select Electrum server.

3. Select Modify.

4. Toggle the Use a custom server button.

5. Enter your node information.

6. Hit Save.

To avoid payment correlation using the collection of timestamp metadata:

1. Select Payments backup.

2. Toggle on the Randomize upload delays option.

✅ DO's

• Write down your 12 words clearly and in the correct order.

• Store your backup in a secure location.

• Triple check that all of the information is correct.

• Be in a private, safe location with no one else around.

• Take your time to go through the steps.

• Use the biometrics security feature.

❌ DONT'S

• Use a public network or computer for the generation of your wallet.

• Store your backup in a location that can be easily accessed by others.

• Keep your backup out in the open.

• Brag about your Bitcoin holdings.

• Forget to write down your Bitcoin backup.