What is a Bitcoin node and how to run one?

Bitcoin doesn’t run on trust in a single authority. It runs on thousands of independent computers checking the rules for themselves. Those computers are called Bitcoin nodes.

Read on for the details of how they work and whether it’s possible to run one yourself.

What exactly is a Bitcoin node?

A Bitcoin node is a computer that connects to the Bitcoin network to verify and relay transactions and blocks. It follows Bitcoin’s rules independently, checking that new data is valid before sharing it with others.

Nodes don’t create new bitcoins and they don’t decide prices. Their role is simpler; by verifying information for themselves rather than trusting a third party, nodes help keep the Bitcoin network decentralized and resistant to manipulation.

Therefore, Bitcoin works because thousands of nodes around the world are constantly checking that everyone is playing by the same rules.

Bitcoin node definition: What does a node do?

At its core, a Bitcoin node acts as an independent verifier. It checks that transactions and blocks follow Bitcoin’s consensus rules before accepting them as valid.

When a transaction is broadcast to the network, nodes examine it for basic correctness:

• Are signatures valid?
• Are the inputs already spent?
• Does it comply with protocol rules?

Valid transactions are then relayed to other nodes across the network.

Nodes also verify new blocks. When a miner proposes a block, nodes independently check its contents before adding it to their copy of the blockchain. If a block breaks the rules, nodes reject it, regardless of who produced it.

This verification role is what allows Bitcoin to operate without a central authority. 

What is a Bitcoin full node?

A Bitcoin full node verifies the network’s rules for itself. It independently checks transactions and blocks against Bitcoin’s consensus rules: valid signatures, no double-spends and blocks that follow protocol limits. 

Most full nodes also keep a full copy of the blockchain data, but verification is the defining feature. Beyond being a database, a full node is also a rules enforcer.

By contrast, lightweight clients (often used in wallet apps) do less verification on their own. They rely on full nodes for deeper checks, which is faster and less resource-intensive, but less independent.

There’s also a middle option: pruned nodes. The table below summarizes the differences between the three types.

Bitcoin node vs. miner: What’s the difference?

People mention Bitcoin nodes and miners in the same breath, but they serve different roles in the network.

A node verifies. It checks transactions and blocks against Bitcoin’s rules and rejects anything that doesn’t comply. 

A miner proposes. Miners assemble transactions into blocks and compete to add those blocks to the blockchain by expending computational effort.

Crucially, miners don’t decide the rules. Even if a miner produces a block, it only becomes part of the blockchain if nodes accept it as valid. In that sense, nodes act as referees, while miners are participants trying to make a valid move.

This separation is deliberate. Mining provides security through competition and cost, while nodes preserve decentralization by ensuring that Bitcoin’s rules are followed, regardless of who is mining.

Pros and cons of running a Bitcoin node

Running a Bitcoin node isn’t about earning rewards or gaining influence over the network. For most people, it’s a choice over independence and control. 

Running your own node can be a hefty investment, so understanding what nodes offer and what they require helps set realistic expectations.

How to run and set up a Bitcoin node (what’s actually involved on a high level)

Running a Bitcoin node requires significant and consistent commitment to resources and uptime. Once set up, a node mostly runs quietly in the background, but getting there requires some preparation.

1. Choose how you want to run the node

Most people run a node in one of two ways:

• On a personal computer, which is easier to start but less reliable if the device is turned off often.
• On a dedicated device (such as a small server or single-board computer), which is designed to stay online continuously.

The choice affects reliability, not how the node verifies Bitcoin’s rules.

2. Make sure you meet the basic requirements

Before installing anything, confirm you have:

• Enough storage to hold blockchain data, with room for growth over time.
• Stable, uncapped internet, as nodes continuously send and receive data.
• Consistent power, since frequent shutdowns slow syncing and reliability.

3. Download Bitcoin node software from official sources

Most users run ‘Bitcoin Core’, the reference implementation of a Bitcoin node. Software should always be downloaded from official project websites or repositories to reduce the risk of tampered files.

4. Verify the software

Verification checks help ensure the software hasn’t been altered. While this step can be skipped by beginners, it’s strongly encouraged if you’re comfortable following official instructions.

5. Install and configure your node

Installation typically involves:

• Choosing where blockchain data will be stored.
• Selecting whether to run a full or pruned node.
• Setting basic network preferences.

No advanced configuration is required to start verifying the network.

6. Sync the blockchain (expect this to take time)

Initial sync is the most demanding phase. Your node must download and independently verify every block from Bitcoin’s history. Depending on hardware and connection speed, this can take days, not hours.

During this time, the node may appear idle while it verifies data. This is normal.

7. Keep the node updated and running

Once synced, the node requires minimal attention:

• Keep the software updated when new versions are released.
• Allow the device to stay online as much as possible.
• Monitor storage growth periodically.

Optional setup choices

• Enable incoming connections to allow other nodes to connect to yours, strengthening the network.
• Connect your wallet to your node to reduce reliance on third-party servers for transaction data.

These steps are optional but commonly chosen by more experienced users.

Does running a Bitcoin node make money?

In most cases, it doesn’t. Running a Bitcoin node doesn’t generate income or rewards simply for being online.

This is a common point of confusion, as nodes are conflated with miners. Miners earn block rewards and transaction fees by proposing new blocks. Nodes do neither. Their job is to verify and relay data, not to produce blocks or compete for rewards.

A standard Bitcoin node doesn’t receive payments for validating transactions or keeping the network running. There is no built-in compensation mechanism for node operators and running one doesn’t increase the amount of BTC you hold.

There are some exceptions, but they are indirect at best. For example, a business might run a node to reduce reliance on third-party services and improve privacy. These benefits can lower operational risk, but they are cost savings, not income.

Bitcoin separates verification (i.e., nodes) from incentives (i.e., mining). Most choose to run a node for independence and trust reasons rather than profitability.

Learn the ins and outs of Bitcoin 

Running a Bitcoin node is one way to engage directly with the network, but understanding how nodes fit into the broader system is also a good-to-know.

On Crypto.com, you can explore Bitcoin basics, learn how transactions move across the network and understand how wallets and nodes interact – all through step-by-step educational guides.

What you can explore on Crypto.com:

• Learn how Bitcoin nodes help validate and relay transactions.
• Explore Bitcoin basics and wallet guides.
• Set up an account to access 400+ cryptocurrencies and easy funding methods (where available).
• Keep learning with clear explainers in the Crypto.com Learn Hub.

Get started with Crypto.com

FAQs about Bitcoin nodes

What is a Bitcoin node?

A Bitcoin node is a computer that connects to the Bitcoin network to verify and relay transactions and blocks. It checks that data follows Bitcoin’s rules before accepting it, rather than relying on another party’s version of events.

What’s the difference between a Bitcoin node and a full node?

All full nodes are Bitcoin nodes, but not all nodes are full nodes. A full node independently verifies all transactions and blocks against Bitcoin’s rules, often while storing blockchain data. Other nodes may rely on full nodes for deeper verification.

Bitcoin node vs miner: what’s the difference?

A Bitcoin node verifies rules and data. A miner proposes new blocks by competing to solve cryptographic puzzles. Miners can earn rewards if their blocks are accepted. Nodes don’t earn rewards; they decide whether blocks are valid.

Why run a Bitcoin node?

People run Bitcoin nodes to verify the network independently, reduce reliance on third-party services, and improve privacy. Running a node also helps support Bitcoin’s decentralization, even though it offers no direct financial incentives.

How do you set up a Bitcoin node?

Setting up a Bitcoin node typically involves choosing a device, installing official node software such as Bitcoin Core, configuring storage and network settings and allowing time for the initial blockchain sync. A stable internet connection and sufficient storage are essential.

Is running a Bitcoin node profitable?

In most cases, no. Running a Bitcoin node doesn’t generate income or rewards. Nodes verify and relay data but do not receive block rewards or transaction fees, which are reserved for miners.

What are some common beginner issues when running a node?

New node operators may underestimate how long the initial sync takes, run out of storage space or experience slow performance due to unstable internet connections. Power interruptions and frequent shutdowns can also delay syncing and reliability.

What are some good maintenance habits when running a node?

Good habits include keeping the software up to date, ensuring enough free storage space, monitoring internet connectivity and allowing the node to stay online consistently. Periodic checks help keep the node running smoothly over time.

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