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0 sats \ 8 replies \ @Solomonsatoshi 13 Nov \ parent \ on: Introducing Subaccounts in Alby Hub lightning
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?
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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?
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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.
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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.
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Maybe coinos are attracting people?
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Maybe Alby are overcharging?
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Maybe. It's the market working, people decide!
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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.
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