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43 sats \ 4 replies \ @DarthCoin OP 27 Apr \ parent \ on: Bitcoin Beginner Saloon #3 bitcoin_beginners

Good question. But you didn't mention: private or public LN node? This is an important aspect when you choose the size of an UTXO / channel.

A TLDR will be:

  1. For public nodes, at least min 3M sats/channel. No maximum. More is better for public nodes.
  2. For private nodes, a min 300k sats and a max 3M sats / channel is enough. Or at least size the channel for how much you are willing to spend in a certain period.

These limits are NOT about the value in fiat of the channels or payments, but about efficiency of making payments.

What is the smallest amount you would recommend holding onchain

A LN wallet should NOT hold onchain almost anything. You only keep in onchain a single UTXO of max 100k sats, required for when you get a force closed channel in a high fee period and you are stuck with a low fee closing tx. So you can bump it easily from the same wallet.

If you want to read more details:

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22 sats \ 3 replies \ @chris21million 27 Apr

Ah yes I should have been more specific, it really links to my original question

If you are holding in cold storage on chain, what is the minimum UTXO size you recommend, seeing as 50k as per your table is too small and 100M could be considered too large

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43 sats \ 2 replies \ @DarthCoin OP 27 Apr

You asked about using Zeus as LN wallet, not onchain cold storage...
Are two different things.
A LN wallet should NOT be used for long storage, only for sporadic or daily routine payments. DO NOT put into / open LN channels if you do not use them!

For onchain holding, I've explained in more details in that guide I mentioned before:

  • think about how often you will open new LN channels in the future, then size them accordingly
  • think about how much you will want to move out of long cold storage, someday in the future. So create many different sizes UTXOs for each of these oacassions. So when you will have to move out, move only the UTXOs that are appropiate of that use amount.

Spreading your stash into many pieces is important. Pieces means not only one wallet with multiple UTXOs, but also multiple (types) wallets with multiple UTXOs, multiple sizes.
Spread is good also for the so called "5$ wrench attack"... it works like a plausible deniability case.

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1 sat \ 1 reply \ @chris21million 27 Apr

Correct, I should have explained in more detail

Thanks Darth

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43 sats \ 0 replies \ @DarthCoin OP 27 Apr

Is ok, additional questions and explanations will make others to read here and learn.

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