Question to all lightning node runners. What part of your bitcoin do you use to open channels? Do you use all your bitcoin for this? How do you decide how much to leave in cold storage and not locked in lightning network channels?
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5 sats \ 0 replies \ @TheBTCManual 6 Dec
I have 1 channel open and it's like 0.1% of my stack and even then I'm like why am I doing this to myself, lol but I want to learn so i've already zero'd that balance in my head if I fuck it up royally somehow
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134 sats \ 2 replies \ @DarthCoin 6 Dec
As I explained in this guide: not just be your own bank, but also think like a bank.
https://darth-coin.github.io/beginner/be-your-own-bank-en.html
Use the 3 levels method: HODL, cache, spend
A LN node is only a transition / cache level. Do not use all your stash into a LN node, but enough to manage the other operations.
LN channels are NOT "locked", but the way around, are liquidity necessary to make day to day payments.
I will say it again:
- onchain is doing TRANSACTIONS, final settlements, long term holding, large amount.
- LN is doing PAYMENTS, instant spending, small amounts, short terms.
I personally do not have a certain amount rule to keep in a LN node. I run multiple LN nodes and the amounts are moving up/down depending on the needs.
I live off my BTC so I need to have enough liquidity in each of them.
As advice for somebody that start now, I would say to not keep more than 30% of your total stash in a LN node. Now depends also if you run a public routing node or just a private spending node. For a public routing node, you would need more liquidity allocated.
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21 sats \ 1 reply \ @BallLightning OP 6 Dec
I am asking about public node (I don't have a lot of money, so it's just a curiosity). Since for routing it seems like the more money you have providing liquidity, the better in every way (fee income, increasing the ln resilience, more available routes for payment, higher transaction amounts possible, more channels are possible increasing ln connecticity... everything).
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33 sats \ 0 replies \ @DarthCoin 6 Dec
Yes, if you dedicate your time, effort and money into public routing, then you would end up having more % in your LN node than in cold storage. You must be aware and keep a balance anyways. Not that you can get a crashed node, that's not a real problem, funds can be recovered anyways. The problem is that you could end up with stuck liquidity that is not "producing" anymore income.
Is yes and no... Depends how you manage that liquidity. You can have also very good income from fees with lower liquidity, but enough to offer proper routing. If you can replace quickly depleted channels than you don't need hundreds of BTC in a LN node.
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0 sats \ 4 replies \ @justin_shocknet 6 Dec
Lightning node's are hot wallets, never put your whole stack in there.
Capacity depends on your use-case, if you're a merchant just receiving payments you may just decide to pay 10-20k sats for inbound capacity from an LSP and not actually tie up coin.
For spending, you probably want the channel open costs to be a small percentage of what you spend in a given period... so what do you spend sats on? how much is that? how frequently is that? Then determine what multiple makes the investment in a channel economical? 10x, 100x, 1000x?
Routing is a business, that's a whole other animal...
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17 sats \ 3 replies \ @BallLightning OP 6 Dec
I was talking about routing node and unfortunately I forgot to mention that :(
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0 sats \ 2 replies \ @justin_shocknet 6 Dec
I'd say find another way to earn sats then, its a lot of risk and management for little to gain.
Routing is something that's ideally a by-product of another business, another business that just happens to be running a public Lightning node. Think of a business you'd like to receive sats for first, then stand a node for that business to receive payments and grow your network organically.
The best mental model for routing fees are that they aren't meant to be earned, but simply to make the network function. Breaking even on fees you've earned vs. fees you've spent making payments is what makes Lightning transactions effectively free.
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0 sats \ 1 reply \ @BallLightning OP 6 Dec
First I don't have a lot of money, so running my routing node is out of the question. Second, nobody can prevent anyone from running their own routing node. Third, most of the lightning network currently is composed of nodes that are dedicated to lightning, not just as a byproduct. Fourth, if people start routing ONLY as a byproduct of their business, than the question still stands. How much money will the business keep in it's channels? Will they have onchain funds at all?
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0 sats \ 0 replies \ @justin_shocknet 6 Dec
tf does that have to do with anything? who said otherwise?
The lightning network requires lightning nodes, yea duh... the known capacity of Lightning is predominately businesses that accept Lightning payments and therefore run a node. The routing fees they earn are a by-product of that other business running a node.
What are it's goals?
Does the business necessitate it? Do they have a treasury or not?
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0 sats \ 0 replies \ @random_ 6 Dec
#430794
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