pull down to refresh
11 sats \ 11 replies \ @Solomonsatoshi 13 Nov \ on: Introducing Subaccounts in Alby Hub lightning
Using custodial LN wallets in comparison Albys network fees are considerably higher than coinos.
For example 555 sats sent from coinos LN wallet - zero fees charged.
whereas to send a 1 sat payment (for a comment on SN) from Alby wallet cost 1 sat network fee while a 2100 sats payment from Alby incurs a 17 sats fee.
Why are Albys network fees so much higher than coinos?
Why are Albys network fees so much higher than coinos?
Routing fee... duh
If you want it to be cheaper then make your own path by opening a LN channel to your endpoint to minimize hop
reply
I am no tech person and coinos does all that routing for me for much cheaper than Alby.
Why does Alby charge so much more in network fees than coinos?
reply
reply
But I am talking about my custodial Alby wallet.
That's what I am using.
Why are the Alby network fees so much higher- like for like?
reply
Oh thought you were comparing running own node vs custodial.
My bad.
Good question. Some variation is expected, but not sure about Alby specifically. Could be many factors. Maybe they have less channels, less efficient routes. Also depends who or what you zap.
It's a fair question, but the answer is likely multifactorial. It's less straightforward than comparing spread rates / prices / fees at exchanges for example where it's just a business decision from the top down.
reply
Speaking of spreads looking at the Alby platform option of topping up your account it takes you via another provider to buy sats and it looks like about 1% fee over market rate.
It was hard to exactly calculate the margin in part because price is now quite volatile.
Alby looks like a very professionally presented platform but also definitely more expensive than some of the alternatives.
There's sure to be a place in the market for many different styles of wallet and more competition is healthy.
reply
Maybe coinos are attracting people?
reply
Maybe Alby are overcharging?
reply
Maybe. It's the market working, people decide!
reply
Yes that's exactly why I raise the issue of the network fees being charged so that we can have an informed market where we can choose which provider to use.
From my own experience Alby did have better liquidity on certain routs but coinos is far cheaper in terms of network fees.
So I am using both, but mostly coinos as the network fees are negligible in comparison.
reply