👋 I am new to the world of cryptocurrency, so I apologize in advance if my questions seem basic or silly.
Recently, I purchased approximately 0.02 BTC (Bitcoin) using my savings. However, I discovered that the CEX I used is overselling their services. They charge me a fee of 0.0005 BTC just to withdraw my funds to the Bitcoin network, and I find this fee to be too high for my preferences (for comprising, Binance charges a fifth of this amount for the same service). Unfortuantely, for geopolitical reasons, my choices are limited to not-very-good CEXs.
My primary goal is to store my Bitcoin in a non-custodial wallet. Given the high withdrawal fees from the CEX, I believe that utilizing the Lightning Network might be a better solution for me. However, I am facing two main issues:
I am currently searching for a wallet that has low fees, both for depositing my Bitcoin and for making future withdrawals or transactions. I understand that opening a Lightning channel often requires an initial deposit, which can be costly. Here are some wallets I’ve explored so far:
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Electrum: I initially considered using Electrum, but to open a channel, I need to make a prior deposit. This means I would have to transfer Bitcoin from my CEX to Electrum, which is problematic because of the high withdrawal fees I mentioned. I don’t know if there is a workaround to deposit some BTC there.
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Muun: I used Muun and found that they charged me no fees when I deposited 10,000 Sats from the CEX. However, sending Bitcoin from Muun is quite expensive. For instance, sending around 10,000 Sats incurs a fee of 1,000 Sats (10%), which I find to be excessive. Additionally, I’ve come across a lot of skepticism regarding Muun’s safety and transparency for storing large amounts of Bitcoin.
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Phoenix: I also tried Phoenix, but the initial deposit fee is quite steep at around 1%. I’m not sure if incurring such a high fee at the beginning is worth it, especially since subsequent transactions still have significant fees.
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Wallet of Satoshi: I have tried this wallet as well and found that it has the lowest fees and it worked great (at least with 10,000 Sats). However, it is a custodial wallet, and I am not comfortable risking my savings with them.
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Zeus: I am currently considering Zeus as an option, but I have concerns. It appears that Zeus requires a substantial initial deposit (at least 100,000 Sats). Additionally, I’ve heard that you might need to run your own node, which I am unable to do. I am also confused by the information on their website and worry that if I pay 10,000 Sats to open a channel, it may not be the best choice for me. I want to avoid losing money or facing high fees later on.
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Blixt: Lastly, I’ve experimented with Blixt, which seems to have a low fee for opening a channel (520 Sats). However, since it operates differently from other wallets, I am unsure if it is the right decision. Other resources indicate that to securely store a significant amount of money, I should open a channel with a substantial initial deposit. However, I do not see a warning about this on Blixt, which raises my doubts further. It also warns of loosing all my assets because is still in beta, which is frightening.
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Breez: Breez seems to be underdeveloped. I read somewhere that its developer just gave up!
For now, I am thinking of using a wallet to withdraw from CEX with low costs and then transfer assets to a physical wallet. Although, I’m not sure if this is the best!
If I manage to transfer my assets using a Lightning wallet, I am uncertain about how to properly close the channel in order to return my funds to layer 1 (the Bitcoin main network). I believe this process might vary based on the wallet I choose to use.
Could anyone please provide guidance or resources about these wallets and the Lightning Network? I am worried about moving all my Bitcoin into a wallet and later regretting my decisions.
I am aware that I need to educate myself further about cryptocurrency, and I am committed to becoming an advanced user eventually. However, I am currently pressed for time and feeling a bit overwhelmed. Thank you in advance for your help! 🙏