Excerpt
I give you my recommendations on how to stack small amounts of bitcoin despite the high fees. I explain a good strategy where you start by storing your bitcoin on a (self-custodial) Lightning wallet and then either swap it into Liquid or on-chain bitcoin for long-term storage or use the liquidity to open a channel on a self-custodial Lightning wallet. Find out how to proceed and which tools and wallets you should use in this video!
Transcript
The third part of this question is: Your recommendation please for small amount transactions and small amount purchase (high fees). This will be an important point in the future as the block rewards decrease constantly. Thanks a lot. I’m not sure what the block rewards decreasing has something to do with it other than that the scarcity of bitcoin increases and there will be hopefully or maybe more demand for bitcoin which lets the price go up, but other than that it’s true that the transaction fees have been rising in recent months in 2023 and so my recommendation to stack small amounts of bitcoin and send a small transaction is basically that if you can’t afford to let’s say at least acquire bitcoin in a value of let’s say $400 US then you should start with a Lightning wallet or a Liquid wallet, you can even use a custodial Lightning wallet but you need to know the tradeoffs, it’s custodial. And you can stack sats there until you have reached at least $200 to $400 US and then you swap it either into bitcoin for long-term storage or into a self- custody Lightning wallet to open a channel. For instance, you open the Phoenix wallet, you send I don’t know , I say 200,000 satoshis or 400,000 satoshis to it to open the channel and then you send 80% of these satoshis back into your on-chain storage or to Liquid where you have the possibility for cold storage, for long-term saving and then you have an channel open with enough inbound liquidity to stack sats again, to get, to receive sats and bitcoin inside of this channel and then when you reach the point again, you swap it out into Liquid or bitcoin on-chain. If you’re doing that with Phoenix be aware, don’t send the satoshis from the wallet directly to a Bitcoin address. So, the wallet offers you the opportunity to send to a Bitcoin on-chain address, don’t do that because it will reduce the size and the liquidity of your channel. Send the Lightning bitcoin with boltz.exchange to on-chain bitcoin or Liquid. So that’s my recommendation to stack small amounts of bitcoin.
