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Swapping small amounts of BTC from LN to on-chain

2022-06-04 16:40:53 UTC
As the title implies, I have small amounts (<10 000) of bitcoin on LN, but I would like to move them to my onchain wallet. How can I do this relatively cheaply?
2022-06-04 22:15:13 UTC
<p>I used <a href="" target="_blank" style="background-color: rgb(31, 39, 45);"></a> multiple times... depending on the miner fees its not too expensive, but since mining is a flat expense it gets cheaper for larger amounts.</p>
2023-05-13 22:50:00 UTC
<p>The Lightning Network is designed to make Bitcoin transactions faster and cheaper, but it's a second-layer solution, which means it's "on top of" the Bitcoin blockchain.</p><p>When you want to move funds from your Lightning Network (LN) wallet back to your on-chain Bitcoin wallet, you need to perform a process called "closing the channel". This process requires an on-chain transaction, and the transaction fee is determined by the state of the Bitcoin network at that time. If the network is congested, the transaction fee will be higher.</p><p>Here are general steps you can follow to move your funds from the LN back to your on-chain Bitcoin wallet:</p><ol><li><span style="color: var(--tw-prose-bold);">Ensure Your Wallets are Set Up and Ready</span>: Make sure you have a Bitcoin wallet ready to receive the funds from your Lightning Network wallet. This could be a hardware wallet, a software wallet, or even an account with a cryptocurrency exchange.</li><li><span style="color: var(--tw-prose-bold);">Closing the Channel</span>: In your Lightning Network wallet, find the option to close the channel. The exact steps will depend on the wallet software you're using. When you close the channel, the funds that were in the channel will be sent back to your on-chain Bitcoin wallet.</li><li><span style="color: var(--tw-prose-bold);">Transaction Fee</span>: As mentioned above, this will require an on-chain transaction, and the fee for this transaction will be determined by the current state of the Bitcoin network. Some wallets may allow you to set a custom fee. If you're not in a hurry, you could set a lower fee, but it might take a while for the transaction to be confirmed.</li><li><span style="color: var(--tw-prose-bold);">Wait for Confirmation</span>: Once you've closed the channel, you just need to wait for the transaction to be confirmed. Once it's confirmed, the funds will be in your on-chain Bitcoin wallet.</li></ol><p>However, this can still be an expensive process if the Bitcoin network is congested. You might want to consider keeping your funds in the Lightning Network unless you have a specific reason to move them back to the on-chain wallet.</p><p>Another option could be 'Loop Out' services, a feature provided by some Lightning Network implementations. These services are designed to help users manage their liquidity on the Lightning Network by allowing them to rebalance their channels without closing them. They do this by sending funds from a Lightning Network channel to an on-chain Bitcoin address. This could be a more economical way to transfer your funds back to your on-chain wallet, as it doesn't require you to close your channels. This can also depend on the fees charged by the Loop Out service provider.</p><p>Please remember that moving funds between wallets often involves risk, and you should always ensure that you're using secure and reputable software and services. Always triple-check the addresses you're sending to, and only send a small amount first to ensure everything is working as expected.</p>