3 Easy Ways to Run Your Own Bitcoin Node (2024)

Education

Tofurther improve your Bitcoin self-sovereignty, it’s essential tolearn how touse operate aBitcoin node. Learn how tobest run your own Bitcoin node in2024 with Swan Bitcoin below!

Stephan Livera

May 1, 2024May 1, 20249 min read9 minutes read

Aspart ofthe journey oflearning about Bitcoin, it’s typical that new and no-coiners start bybuying Bitcoin but end upleaving itonthe exchange orbroker platform.

The next step isgenerally learning self-custody, which means withdrawing Bitcoin into awallet where you hold the privatekeys. This istypically aphone wallet for small amounts orahardware signing device (aka 'hardware wallet')…

But tofurther improve your Bitcoin self-sovereignty, it’s essential tolearn touse Bitcoin with your Bitcoinnode.

What isaBitcoin node?

Think ofitasafake Bitcoindetector. ABitcoin node validates Bitcoin blocks and transactions according torules that define what Bitcoin isand how itexists.

Itisalso how you interact with the Bitcoin network, receiving and sending transactions. You either rely onsomebody else’s node oruse your own node touse Bitcoin.

Why should Irun myown Bitcoin node?

You nolonger have totrust that your service provider istelling you the truth about whether you received Bitcoin.

Your node isdoing all ofthat validationinstead. Your privacy will also bebetter when using your own Bitcoin node, asyou are sharing less transactional data with third parties.

Isrunning aBitcoin node just for technicalpeople?

Some people shy away atthis point, thinking that running anode isonly for developers and highly tech-savvy enthusiasts.

And no, it’snot. Running aBitcoin node isfor everyone. There are lots oftools making iteasy todonowadays. The more people who take anactive part inrunning and using their Bitcoin node, the better itis. Bitcoin isdecentralized validation.

Instead ofmillions ofusers relying onone central service provider’s node, Bitcoin becomes more robust when more users arevalidating. Think ofitasmore participants keeping each other honest and having influence inthe direction the protocol goes.

How doIrun myBitcoinnode?

Below, I’ll spell out three relatively easy ways torun your Bitcoin node (Bitcoin Core) and connect your Bitcoin wallet with your Bitcoin node.

Merely running aBitcoin node isoflimitedvalue. The real value comes when you use that node tovalidate your incoming transactions and broadcast your outgoing transactions. You can dothis byconnecting your software wallet with your Bitcoin node.

Method 1: Specter Desktop & In-built Bitcoin Core

Specter Desktop issoftware you can conveniently install onthe laptop ordesktop computer you already use, and the convenient part isitcomes bundled with Bitcoin Core.

Italso works using your existing computer hardware, which costs you $0 additional outlay.

Let’s walk through some ofthe high-level steps.

• Download and install Specter Desktop from specter.solutions.

• Enable the in-built Bitcoin Core installation.

• Ifyou want tosave hard drive space, download time, and set uptime, you can also enable the 'QuickSync' feature. QuickSync will download apruned blockchain snapshot toget started faster with some trust assumptions.

• Wait until your computer has completed the initial sync. This will depend onyour download speed and your computer’s processingpower.

• Add your hardware signing device, e.g. Coldcard.

  See Also

  Where Does the Yield Come From?

• Create aWallet (single signature isOKtoget started).

• Use the 'Receive tab' togenerate aBitcoin address toreceivecoins. Orspend Bitcoin use the Send tab inside your chosen Wallet.

• Every time you close and reopen Specter Desktop, you must wait for your Bitcoin node tore-sync uptothe blockchain’s chain tip.

• This isbecause the blockchain adds anew block every 10 minutes onaverage, and unless you leave your computer onall day, your node will fall out ofsync while itisoffline. Don’t worry; this isnot something toworry about inthis context.

When your Specter in-built Bitcoin node isupand running correctly, itwill look like this:

Method 2: SBC node & connect alaptop ordesktop software wallet

You can operate aBitcoin node onanSBC (Single Board Computer) such asaRaspberry Pi orRockPro64. These are small devices that use less power and can beleft onall the time cheaply.

Various software node packages will help make this processeasy. Some vendors even sell apre-built node device that makes iteven easier.

Example: Umbrel, myNode, nodl, Ronin Dojo, RaspiBlitz, Start9 Embassy

Check out this node guide from Bitcoiner.Guide.

While this kind ofsetup will cost roughly $400 more than Method 1, the benefit isthat your device will beonall the time, staying insync with the Bitcoin network.

You will also benefit from viewing your transactions inyour own mempool explorer, using Lightning, Coinjoin and privacy features, running self-sovereign Bitcoin payment processing, etc.

With this method, you will either buy the device outright orbuild ityourself and flash amicroSD card with the Bitcoin node software.

Ifyou buy the device outright, itwill beasimple process ofplugging itintopower and your router for the internet.

Then, you can access the node from your laptop ordesktop (oreven your phone insome cases), and you can connect your desktop/laptop software wallet toyour Bitcoin node.

Example: You can download and install Sparrow Wallet onyour laptop, and inthe setup connection dialog box, you can copy-paste the information relating toyour Bitcoin node.

InSparrow Wallet onWindows, click ‘File’, ‘Preferences’, then ‘Server.’

You can then paste inyour Private Electrum Server address and port (e.g. 50001), which you should beable tofind inyour SBC node web interface.

Example: OnUmbrel you will find this Tor URL inthe ‘Connect Wallet’ dialog box area.

Once you’ve done this and clicked ‘test connection’, you can see ifSparrow isable tosuccessfully connect toyour own Bitcoin node for transacting. After you create orload upawallet, you will then bechecking your transaction history onyour own Bitcoin node, rather than your service provider’s node.

When transacting, your Bitcoin node will bethe one tobroadcast the transactions. backs your software wallet such asSparrow.With Sparrow Wallet, you can easily plug inyour hardware signing devices (aka hardware wallets) directly via cable, oruse air-gapped wallets via QRcode ormicroSD.

Sosimilar toabove, you will have achieved the goal oftransacting using your own hardware signing device, backed byyour own Bitcoin node.

Method 3: VPS node for those looking toset upBitcoin merchant payment processing, orpossibly for digital nomads

This option isnot for everybody, but itcan bethe right choice depending onwhat you want toachieve.

Inthis case, itworks well for people living nomadically orthose who want toquickly set upanalways online Bitcoin payment processor such asBTCPay Server.

You can use services such asVoltage.cloud orLunaNode tohost your Bitcoin, Lightning orBTCPay Server node.

Using this setup, you are using someone else’s computer, sonote there isasovereignty trade-off.

However, itdoes make iteasy toget started using anode that you control, rather than being entirely dependent onsomebody else for Bitcoin payment processing services.

Example: Ifyou are amerchant and want toset uptotake payment without trusting somebody else.

BTC Sessions walks through aquick example ofusing Voltage tospin upaBTCPay node and accept payment overLightning. You can create awebshop orset uptotake bitcoin donations using the crowdfunding app.

Another example feature when selling services for Bitcoin isBTCPay Server’s payment requests.

Example: You might want tobill somebody $1,000 equivalent inBitcoin, but they might beinadifferent time zone toyou.

You can create apayment request onyour BTCPay Server, apersistent web link that you can send toyourcustomer. When your customer isready, they can gotothe site, and itwill automatically dothe USD toBTC conversion onthe spot and show the correct amount ofsatoshis topay.

Once paid, itgoes into the wallet you specified, and this isall backed bythe node you control.Easy!

Stephan hosted apanel with Swan CTO Yan Pritzker and Bitcoin Educator Anil Patel atPacific Bitcoin Festival 2023. They share and discuss elegant graphical slides tohelp explain the many facets ofBitcoin using simple language and accessibleanalogies. Great toshare withbeginners!

How tosetup aLightning node

Interested insetting upaLightning Node, but you have aton ofquestions!

1. How many channels doIneed?

2. Who can Iset upchannels with?

3. How doIback upand manage myprivate keys?

4. How can Icheck onthe status ofmynode?

5. DoIneed tobeacommand linewizard?

The video below from Lightning Labs walks through the basics ofLightning Node management and node managementtools.

Next steps

None ofthis issotricky that amotivated individual can’t figure itout. Once you achieve some ofthese steps, you will beamazed attheself-sovereigntyyou can achieve with Bitcoin ifyou take the time tolearn.

Other aspects oflearning include:

• Verifyingsignatures.

• Building from software fromsource.

• Manually controlling orconfiguring elements ofyournode.

You can also learn about customizing your Bitcoin node with command-lineoperations…

Example: See the node box video guide series byk3tanhere.

Bitcoin isabout using tools togive yourselffinancial freedom, regardless ofwhat other governments, businesses, orindividualssay.

Using your own Bitcoin node onyour existing PC, adedicated node computer, oraVPS gives you additional functionality. Itreduces the trust you have toplace inother people orcompanies.

Whether you want assistance setting upyour own Bitcoin node,buying Bitcoin, orabout how toopen theultimate assetfor your retirement portfolio, aBitcoin IRA— Swan ishere foryou.

Learn more ontheSwan Signalblog andSwan MediaYouTubechannel.

For more information, please visitswan.com.