pull down to refresh
0 sats \ 5 replies \ @SwapMarket 23 Sep \ parent \ on: Can I Use Coinos as a Swap Exchange as an Alternative to Boltz? bitcoin_beginners
I communicate with Adam and I tell you what majority of flows are doing, not yours. Going L1 to LN is easy and cheap by opening a channel. Going back is harder and more expensive. Inbound liquidity is a valuable commodity in lightning, that is why people sell channels.
You claimed that.
'all large balances get withdrawn to L1.'
Simply not true.
I can see how conversion back onto the L1 would tend to be more expensive as it requires a transaction to the L1 blockchain although fees on there are now very low.
It looks like Coinos charge fees based on close to what it costs them and operate on low margins which is good for customers compared to the very high fees/margins most other LN wallets charge.
I could not believe the fees charged on some LN wallets. Usury comes to mind!
Coinos is exceptional in charging very low LN fees and that makes spending sats a lot more viable.
While custodial is inherently requiring some trust in a third party operating your own node and wallet is not for everyone and also comes with some risks.
reply
Conversion of LN back to L1 requires closing the channels, and this looks bad for a node stats. And you can't get inbound capacity this way. Try running a lightning node for a couple of years and you will get idea of the flows. Coinos charges 0.4% for BTC withdrawals, on top of chain fees.
reply
Yeah I get that- still Coinos fees are overall waaaay lower than any other wallet I have seen.
Don't want to have to manage channels and nodes- just want to spend and sent sats and Coinos makes that easy.
I can deposit BTC into Coinos from L1 for free (excluding miner fees which are really low now anyway) and transfer via LN to other platforms and the only charge is I think 0.1 %. Incredibly good value.
Don't know what other wallets charge to transfer from LN back to L1- are any less than 0.4%? I doubt it.
reply
No, 0.5% is market standard. But if you don't care to KYC your L1, Kraken lets you withdraw for 1500 sats. Coinos are not chasing profits right now, but growing market share. Their fees can be higher in the future.
reply
So for anything less than 300,000 sats Kraken would still be more than 0.5%.
Coinos appear to not do any KYC which is a bonus, and as long as their fees are the lowest and their service the best I have found, they totally deserve to grow market share imo.
There's got to be a good market potential for an easy to use censorship resistant LN wallet that can work on any browser and has the lowest fees around.
reply