Secrets to Buying & Spending Bitcoin with Almost No Fees!

how do you most effectively reduce your Bitcoin onchain transaction fees now we all know when it comes to bitcoin with its decentralization and immutability there is no second best but with those accolades come tradeoffs sometimes in the form of high onchain transaction fees today we're going to take a look at the tools that are currently available for you to reduce those fees I am Ben with the BTC sessions this is your daily [Music] session huddled as Bitcoin before we dive in quick shout out to sponsors of the show hodle hudle.com if you are buying Bitcoin and you have a few priorities in mind including peer-to-peer trading instant self- custody and no kyc this is the place to be you can sign up with nothing more than an an email address once you're in simply scroll down choose your currency payment method and amount and you can start browsing offers immediately they also have peer-to-peer lending in which nothing is ever reh hypothecated you can check them out today links are in the show notes down below now of course when you do get your hands on uh some non kyc Bitcoin or otherwise you're going to want to secure it with some of the best hardware on the market now I love everything coin card is doing the cold card markv is my go-to Hardware of choice and I have their other goodies as well like the tap signers SATs cards block clocks open dimes and I've pre-ordered a whole bunch of the cold card Q which should be coming soon so if you want to pre-order that or pick up anything else I mentioned head over to coin kite.com you can use code BTC sessions for 5% off everything in the store backups of course are also very important you want your seed phrase to be secure from the elements things like fire water and corrosion and the seedor has one of the most robust and beautifully designed options on the market it has a disc and capsule design and the cool thing about this is it's incredibly robust but it's also uh able to be swapped out so if you have a new seed that you need to replace you don't need to replace the whole thing you can just swap out the discs and it is equally secure they have a starter pack that comes with everything you need for either one or two seed phrases and all the links are down below so that you can get the lowest shipping based on where you are shipping it to you can check them out today so cedor links are down below uh nunchuk they have you covered with your assisted multisig needs what this is is a multisig wallet that you can set up on your mobile device using your Hardware of choice things like tap sign or cold card and plenty of other options once it's set up they hold one key and you hold the rest uh and it has baked in inheritance planning so that your SATs can get to your next of kin if anything should happen to you and one of my favorite Parts about it is that the entire thing is no kyc you don't need to give up your private information in order to set it up and have it work for you so check them out today nunchuck doio I've also got a full tutorial on it if you give it a search and finally shout out to start n your Sovereign Computing solution what do these guys do they have plug-and-play solutions to host your digital life including Bitcoin and your personal data so you can uh basically get a variety of different devices everything from starter entry level to what I'm running which is the start 9 server pure when you have a device and plug it in uh you can access it directly from your browser and what you'll see is the ability to run things like Bitcoin core lightning Network mempool dospace join Market you can Al also host your data like files passwords photos they have ai programs that you can run in a self- sovereign way you can also host Noster clients and relays and plenty of other options uh they do have a reduction in price for the start9 server pure and if you use my code which is BTC sessions with a plus sign at the end of it specifically for the pure you'll get a further 18% off so go check them out start n.com and with that let's dive into the tutorial so let's start off with some prerequisites what are you going to need to know in order to successfully navigate this tutorial well I'm going to be using a variety of tools here and I'm going to start off by saying that every single one of these tools apps websites whatever it may be I have an individual video for each one of these so they will all be linked in the show notes down below if I happen to gloss over some things and you need a deeper dive they are all right down here and there will be Parts where I kind of start off with applications that are kind of already set up like wallets that already exist and so if if you need that how do you set up a wallet type thing then yes that's what the links down below are for so let's take a look at what I am going to be using today uh so I'm going to be using an exchange that is here specifically in Canada called bull Bitcoin so I'm going to be pulling some money off of bull Bitcoin of course this does not apply to my American friends uh but what I need you guys to have is I need you to find an exchange that does not have withdraw fees if your exchange has withdrawal fees when you go to remove Bitcoin from it you are doing Doing It Wrong an efficient exchange will batch withdrawals to multiple customers all at the same time and will eat that onchain fee because it's negligible in the context of paying multiple people at the same time if you're getting dinged with fees find a better exchange if you're in the US I know that strike and cash app both offer uh zero withdrawal fees I think Swan as well and I'm sure there's a plethora of others but please look around make sure you're not getting dinged there because that's going to to be key in avoiding onchain fees of course now we are going to be utilizing the liquid Network in this example uh with a few different apps here and the first one is going to be Sid swap you can get this on desktop I will be using it on desktop in this video but I do quite like the mobile interface in fact I kind of prefer it so uh it would be cool for you to use mobile um but it's totally up to you as well we're also going to be using a service called bolts this is allows you to swap between liquid Network and lightning Network seamlessly quickly and very very cheaply uh now you can just use Sid Swap and kind of stick it there and that that is just your liquid Network wallet um but I do kind of prefer using for regular day-to-day and for saving and and using Hardware uh I prefer blockstream green for that purpose for the liquid Network specifically uh so that's what I'm going to be using here I'm also going to be using a Blog stream Jade though I'm not going to be diving deep into the inner workings of how to use it um you will see me referring to oh I'm securing my liquid Bitcoin with a hardware device and that is the blockstream Jade videos link down below um when I'm using lightning I will be using a self custodi lightning wallet it is called Phoenix wallet I love it I think it works great and um you're not trading off by being with a custodian but there are tips and tricks to utilize pH Phoenix in the most efficient way so that you're not paying a bunch of onchain fees every time that you receive you can kind of unboard and onboard in one Fell Swoop and we'll get to that when we get to it but Phoenix is what I'm using just be aware that initial transaction into Phoenix there's going to be an onchain fee uh and then finally and this is kind of like a little extra bonus but this is what I'm going to be using as an example in this video um I'm going to be using Sparrow wallet as an example of my long-term savings wallet and even though I won't explicitly be using it in the video you can assume that I'm using my cold card for the uh security mechanism for the the security device uh to keep my funds uh or the keys to my funds offline so if you're curious about that again uh cold card that's what I would be using in that situation so there's a bunch of stuff here again all videos linked down below and um yeah and there's parts of it that you may not necessarily need to use uh if you don't want to have multiple Hardware devices and everything uh the Jade also allows you to secure regular onchain Bitcoin and you can do that through blockstream green so you can kind of have it all in one place if you prefer but that is totally up to you anyways we're going to jump now to just a quick explanation of the tradeoffs between onchain fully custodial and the stuff in between which I would say is lightning and liquid Network depending on how you're using them so let's do a little discussion on that okay so this section I just want in the context of fees versus security okay so let's um let's first start off with the polar opposite ends of the spectrum so um we'll say the worst possible thing that you can do is just leave your funds sitting on an exchange because you're giving up all your self- sovereignty at any point your funds could be stolen or frozen you could be locked out of an account whatever it may be you have no real control there you have an IOU okay so most bitcoiners know that not your keys not your coins on the other polar opposite end of the spectrum you have full self- custody and security with Hardware okay and this is my example of sparrow wallet with a cold card great you have full custody of your coin coins they are onchain your keys are secured offline by a hardware device like a cold card or whatever it may be that's kind of your gold standard and maybe you're going the further extra step of some sort of multisig or whatever that's besides the point here's your two ends now the middle space is filled out by these these in between options okay lightning Network um many will be obviously familiar with it's becoming quite ubiquitous and it kind of comes in a couple different flavors there's a of course the custodial lightning wallet option and people tend to like that because onboarding is very easy there's zip when it comes to onboarding fees for that you're not paying onchain fees because the the custodian the person running that wallet already has a lightning node and establish channels and everything but it's important to be cognizant that what what are you really doing there if you move from an exchange and then you eventually get into a a lightning wallet that's custodial it's important to realize that you've not really traded you've you've not really improved materially from the custodian that you were with previously at the exchange you're just at a perhaps less accountable custodian um but there may be less information and and kyc required to operate that wallet but there is also jurisdictional risk with that so in this example we're going to be using a full self custody wallet known as Phoenix there are others out there this just happens to be the one I'm using today um and with the uh responsibility of self- custody also comes uh the fact that your phone is effectively running a lightning node and so when you initially set it up and start receiving transactions there will be onchain fees to set up a lightning channel to you however you can do that in a very efficient way in the way that I'm going to outline here so that you only incur that fee maybe once maybe twice if you get a lot of uh uh inbound transactions and your balance builds but we're going to try and optimize that the best we can okay so that's lightning oh one last thing about lightning actually I wanted to mention the trade-off with lightning also is that it cannot be secured by Hardware the very nature of the network necessitates that it be a hot wallet that is on an Internet connected device so that is kind of the the trade-off there low fees you know quick transactions Works quite well especially for for me Phoenix works like an absolute dream but I can't secure it with Hardware okay so let's jump to liquid Network a lot people are a lot less familiar with liquid and there are trade-offs to be had but there's also some benefits so it's up to you to decipher whether the tradeoffs in this example are worth it so the liquid network is a Federated multisig there are 15 entities Geographic geographically dispersed these are all companies around the globe in different countries all over the place and they hold the keys to a an 11 of 15 multisig this multisig is where Bitcoin goes in and every time that Bitcoin goes into the multisig there is liquid Bitcoin created one to one so every Bitcoin in the multisig is represented by liquid Bitcoin anytime Bitcoin leaves the multi- liquid Bitcoin is destroyed these are known as pegin and Peg outs okay adding to the liquid Network removing from the liquid Network what is the risk here with this of course this is on a spectrum again we had our our best and worst we had you know you're sitting on an exchange that's the worst you're trusting one entity with your coins you have full self custody on chain secured by Hardware that's the best nobody can tell you no you own the coins on chain and it's irrefutable liquid is somewhere in that middle Gray Zone it's it's not nearly as good as self- custody of course we know this but it is notably better than sitting on a single exchange why because of the Federated multisig model 11 of the 15 uh multisig signers 11 of the 15 out of that Federation would have to simultaneously collude to rug pull and break that Peg between Bitcoin and liquid Bitcoin okay um now I I'm not advising people sit in liquid Bitcoin indefinitely but as a midterm stacking mechanism to reduce fees it could be a viable option and this is what I'm starting to look at and I'm starting to use a bit more regularly so what are the benefits with that tradeoff of the Federated multisig model well the benefits are number one fees are incredibly low all right you're going to be paying maybe a couple hundred SATs for a transaction number two the transactions are actually quite a bit quicker uh you have one minute block times and after 2 minutes every transaction is fully confirmed on top of that the transactions are also shielded meaning that uh the amount and the asset transacted are blinded to the public the public can see that a transaction took place but they do not know the amount that has been sent or received and then finally you can secure liquid with hardware and this is what we're going to do in this example um so you don't have to worry about having a large amount of funds sitting in a hot wallet so what you can do is you can swap into liquid you can let it build up a little bit transactions are super cheap back and forth wherever you want to move them and once it gets to a threshold where your uncomfortable with it sitting in liquid you can swap to onchain bitcoin into your cold storage on top of this you can also easily swap to lightning Network so if you want spending cash daytoday you can do that with again negligible fees so those are your benefits with the tradeoff of a Federated multi so I hope that you'll take that into consideration as we go through this if you want more info on liquid and all of the tools that I'm going to be using again I will have links down below for you to check out with that let's dive into the actual tutorial itself and we're going to be starting from the exchange which is efficient batches transactions and is eating that onchain fee for me okay so here I am on bull Bitcoin I'm already logged in I have funds available in my account I have 100 Canadian dollars here and I would like to buy some Bitcoin and I want to withdraw it but I want to do it in a way where moving forward Ward my fees are going to be negligible if I want to you know put it into Cold Storage if I want to get day-to-day spending cash whatever it may be now I will say that bull Bitcoin is already set up so that all of the additional hops that I'm about to do here um are not necessary why is that well because they have the option to withdraw directly to lightning or directly to liquid I mean these guys were prepped and ready for high fee environments so hats off to them thank you bull Bitcoin for being awesome but I digress there's a good chance that a lot of you watching this don't have these options on your exchange you may have the lightning option because that's becoming a little bit more uh frequent but you likely don't have the liquid option yet there are exchanges that offer liquid you can peek around for those if you want to uh kind of streamline this whole thing and uh and and go from there but nonetheless uh this is what we're going to deal with we're going to with withdraw regular a regular Bitcoin transaction from The Exchange and have it swap directly into the liquid Network for us how are we going to do that we're going to do that with something called Sid Swap and I've got it on my desktop right here I'll pop over to it really quick so this is Sid swap again it's um I I I prefer the interface uh when I am sitting on my mobile but uh for the time being this will work just fine the important thing is whether you're on desktop or whether you are on uh your mobile down at the bottom of the screen there's going to be a few tabs and you're looking for the peg in/ pegout button okay the other thing I'll say is that this wallet is already set up it's just like setting up a regular Bitcoin wallet uh you're going to get um 12 or 24 words you're going to write them down you're going to keep them safe and that's your backup to your Sid swap wallet so that's that if you want more info video down below okay so I'm going to go to the peg in Peg out option this allows me to go from onchain Bitcoin to liquid Bitcoin and vice versa there's a tab for each boom boom back and forth awesome okay so the peg in all I'm going to do I'm going to hit the peg in button this is going to provide an onchain Bitcoin address that I can send Bitcoin to as soon as there are I believe two confirmations uh then I will receive liquid Bitcoin into my Sid swap wallet so again all I need to do is copy this address and then send Bitcoin to it we're going to do that directly from the exchange which is covering the onchain fee to do so H awesome um it's important to note there is a conversion rate uh it sits around 99.9% so you're paying 0.1% or oneth of a percent for the conversion that's negligible especially when you're in a high- fee environment to be able to move around uh very cheaply from here on in so I've copied this address important to note the last few digits 5sc so that when I paste it I know it's the right one great so I'm going to go I'm going to buy Bitcoin uh I'm not going to swap to anything different here we're doing an onchain withdrawal from bull Bitcoin all they ask is hey my f accounts already funded I'm going to put in my Bitcoin address 5cc looks good I'm going to hit create by Bitcoin order and uh and then how much am I buying i' specified $100 so the full amount okay create buy order okay worth awesome it says confirm Bitcoin purchase you're going to get this much Bitcoin so around 108 189,000 SATs uh I'm going to confirm the purchase okay and it says hey uh you're going to be part of our batching system uh there's a scheduled transaction time in which this transaction will go out to the address that I've designated which is Sid swap as soon as it hits there two confirmations and I should have my liquid Bitcoin so I got a little bit of time to wait I got an hour and a bit here so we will jump back in after I've received that and we have our liquid Bitcoin sitting in Sid swap Flash Forward later in the day uh bull Bitcoin has now sent out uh the Bitcoin to the designated address and if we peek over here back on Sid swap we can actually see that it has gotten a couple confirmations and we should now have our liquid Bitcoin sitting in our wallet here and uh if I just go home I can see hey I have a balance 189,190 185% so I was spending a total of 0.15% uh in order to swap into Bitcoin which again less than 210 of a single percent to uh avoid fees moving forward or avoid uh high on chain fees moving forward pretty good so I now have this in a hot wallet it is sitting here on my uh computer and uh and and this is a hot wallet and by the way this is a US dollar denominated uh I was pulling from an Canadian exchange yes the Canadian exchange rate is that bad uh but nonetheless I have my liquid Bitcoin sitting here so at this point I'm now in a medium that allows me to move around very very very uh quickly and for low fees now at this point I may want to move uh this into something a bit more secure secured by Hardware so we're going to take a look at doing that next all right so I now have open blockstream green and um this is kind of my preferred liquid wallet of choice you can also manage on chain Bitcoin here as well and I currently have plugged in a blockstream jade which is a a hardware device you can use to of course secure Bitcoin but also to secure liquid Bitcoin so that you uh don't have to have it sitting in a hot wallet which I will contend is a a good choice for a medium level stack and what I mean is you can build up a bit of a stack uh in the method that we saw swap in into liquid let it build up secure it with Hardware in the interm and then move it off when you see fit for various purposes and we'll get into that later so let's just take a quick look at what it's like to send a liquid transaction over to my Hardware now so I've got both wallets open underneath I've got uh I've got Sid swap open still so here in bloom green and again I've got videos on this down below if you need uh some more indepth uh coverage there's a little receive button in the bottom right so I'm going to hit that that's going to bring up a QR code for me um so if you're on mobile you could just scan it otherwise I can just hit copy to copy that address I'm going to make note of the last few digits as well zj4 okay cool and then I'll jump back over to Sid swap I'll click on my liquid Bitcoin I want to send it somewhere I want to send it to the address I just copied uh zj4 looks good and I'm going to send over the max amount because I want it to sit in my uh I want it to sit secured with my blog stream Jade so I'm going to hit review okay here's my overview of what I'm sending um and it looks like the network fee is going to be a whopping 137 SATs how will I ever financially recover from this we're going to hit sign and broadcast and off it shall go uh over to blockstream Green where I can secure it with my jade so I'll just EXO to this QR code we should see it pop up here momentarily into my wallet as an unconfirmed transaction and you'll notice that this process is effectively the same as what you do with onchain Bitcoin you get a receive address and you can just send to it at any point I don't need to uh be monitoring uh I don't need to be online I don't need to do any of that stuff and there we can see the unconfirmed transaction coming in and it will just be there and uh yeah it's it's unlike lightning in that you don't need to have a note online or anything like that it's just there um so what we're seeing right now is it will take one minute for a confirmation of this transaction after 2 minutes it is fully confirmed and irreversible on the liquid side chain on top of this the transaction itself is shielded to the public so nobody could actually see what amount this was if I wasn't obviously filming it for you right now so if I go and I say View and Explorer it will actually show me and I just got to pull it across my screen here it will actually show me the transaction on the liquid side chain but we don't get any information about what was actually spent um so we don't know exactly you know how much money was spent we see the fee we don't see anything else we don't even know if it was actually liquid Bitcoin being transacted or if it was uh you know stable coin or something like that because that's possible on liquid but that's besides the fact um yeah so so that's what the public ceas and we can see we already have a confirmation here and uh after two confirmations again transactions fully irreversible but for all intents and purposes we have our funds in secured by our Hardware wallet on blockstream green with the blockstream Jade in a minute um at a cost of 100 and some mod sets pretty awesome in this section I now want to dive into um when you want to move out of liquid for different purposes and the first one we're going to highlight is what if you want day-to-day spending cash in a lightning wallet that is self custodial and I'm going to focus on self- custodial because again we're trying to yes avoid fees but also number two we're trying to be as self- Sovereign as possible obviously there's a trade-off with liquid in the Federated model but it's for me an acceptable trade-off in in the interm um in order to avoid those onchain fees but let's also again try to stay self- Sovereign with uh with this in terms of lightning so um what I'm going to be doing is I'm going to be swapping seamlessly between liquid and lightning and I'm going to send it to a lightning wallet I have on my phone now the the wallet I have on my phone is Phoenix wallet at the time of recording this is kind of my default goto lightning wallet and it is self- custodial and with that you need to be aware that when you send transactions to Phoenix especially for the first time it needs to establish Lish a lightning channel to you and that incurs an onchain fee however there's an efficient way you can go about this so that you don't incur more onchain fees repeatedly and the mechanism through which that you'll do this is you let your liquid balance build up okay you want to get to a threshold whatever that threshold may be um should be in and around what you're comfortable with having as uh spending cash in your wallet or maybe beyond that maybe double the amount that you're used to or that you would be comfortable with as spending cash in a hot wallet on your phone and the reason that you're going to go a bit beyond that is you're going to send that much in a swap mechanism that I'm going to show you how uh to Phoenix wallet you're going to incur an onchain fee for that but this is going to establish a large lightning channel to Phoenix and that gives you lots of liquidity and then with the remainder the part that you're uncomfortable with sitting in a lightning wallet a hot wallet on your phone you're going to swap back to liquid again for a very minimal fee and then you're going to have that sitting in your cold storage until you want to actually move it into savings or whatever else you want to do with it but nonetheless we're we're being conscious and we're being efficient in our way of setting up inbound liquidity and outbound liquidity to our our Phoenix wallet so let's see how we're going to do that we're going to utilize something called bolts this is bolts. exchange bz. exchange it allows you to swap between lightning Network and liquid Network and vice versa so you can you can swap and just switch around just with the little arrow here uh but basically you're going to go to the site you're going to um choose your direction for us we are going from liquid into lightning now I will say that my my uh Phoenix wallet already has a large channel to it so you know the inbound liquidity is is already kind of set up and good to go for me but for you the first time you do this you're going to want to have a a a good chunk of change that you're all going to send over and then we'll look how to swap back to it afterwards okay so I am sending liquid I am receiving lightning so how much would I like to send over well in this instance as an example let's let's do a million sets Okay at the time of recording this video I think that's I don't know 360 bucks or something like that you may want to do more you may want to send over like 2 million sets or 5 million sets or whatever it is whatever you send over that's going to be the size in and around the size of the channel That will be established with your uh lightning node via Phoenix okay and it's all automated in the background okay so this is is a million SATs that I would like to send over keep in mind that the max amount is uh 25 million SATs as a quarter of a Bitcoin uh you can swap easily here which is awesome you can also send uh small amounts like you know like 1,200 SATs or something which is also pretty cool um nonetheless okay million SATs what do I need to do now it says you can uh paste a bolt 11 lightning invoice a lightning address whatever so if you are on a custodial option that will work just posting a lightning address but I'm going to do an invoice and it says the amount I need to do the in invoice for which is 998 854 SATs okay so again I'm not going to show this uh specific maybe I'll I'll quickly just uh bring up full screen but I'm just hitting on on Phoenix there's a receive button at the bottom I'm going to hit that again if you need more guidance in and around Phoenix watch the video down below uh on the invoice screen there is an option to edit the invoice the amount so I'm going to hit the edit button there and I'm going to type in the exact amount I see 998 854 998 854 and then there's a button that says create invoice I'm going to hit that now that gives me my QR code and there's a copy button where I can copy that invoice I'm going to get that over to my computer so that I can paste in that invoice here uh on bolts and I usually just send it to myself through you know telegram or some sort of messenger whatever you have handy so I'll do that really quick we'll be right back all right here we are I've now pasted in my invoice which I've got over here uh I'm going to go ahead I'm going to say create Atomic Swap and so this is now going to bring up a QR code so if I did have I was still sitting on Sid swap on my mobile then I could scan here you can also get blocks from Green on mobile and man there if you want but nonetheless we're doing this on the computer so it does give us options to copy the address and the amount so I'm going to copy the address let's pop over here to blockstream Green I'm going to hit send I'm going to paste in that address and now I need uh the amount I'm going to copy the amount it does co uh copy the amount in SATs so you may need to manually change uh your um your liquid wallet uh to be denominated in SATs and not uh not liquid Bitcoin just be aware of that um but nonetheless mine's already changed so I'm sending over a million SATs which is actually around 380 bucks right now uh so I'm going to hit review it says hey you're sending this much uh to this address does that look good to you I'm going to say yes I'm going to hit send and then right now um because this is linked to my blog stream Jade it's just asking me to confirm on the device like you would with any uh regular Hardware wallet you can check out the Jade video and the links but I'm approving it right now and we can see that transaction is now sent and so what's going to happen is in a moment we'll see there we go transaction is now in the mempool and so it's waiting for confirmations before it will send a lightning transaction directly to my Phoenix wallet and so I should see that pop in momentarily um and we'll see what that looks like when it does okay and I can now see in Phoenix I just received a transaction for the amount designated [Music] [Music] 98854800 again you're going to want to establish that big inbound Channel first which will just be automatically subtracted in Phoenix itself and then after that you'll be able to spend out as you see fit with just regular lightning transaction fees and speed which is great okay so let's say that now that I sent over that million SATs to my lightning wallet um that was beyond my threshold I wanted to establish a large Channel but I don't want all of that sitting there I want the ability to receive more transactions and I want to put part of that back into uh my savings with my blockstream jade well we can do a swap back to liquid we will retain the lightning channel that we had so we've got now the ability to transact on lightning and we're not going to be incurring onchain fees anymore to receive okay so let's set that up we're back in bolts we decided to do a new swap I've used the little arrow in the middle to swap back so that we're going from lightning to liquid and I've designated I'm going to send about half of what I sent uh to my lightning wallet back to liquid okay the fee that I'm incurring here is 428 SATs that's the network fee on on uh uh with liquid and then the bolts fee for the service of swapping is 0.25% so you know negligible okay I'm going to jump over to my blocks from green or whatever liquid wallet I'm using I'm going to hit receive even though you can't see the the button you get the point um and I'm going to grab I'm going to grab an address here I'm just going to copy it I'm going to jump back and paste it in okay so there's my my address I'm going to hit create Atomic swap that's going to bring up a lightning invoice for me and so I'm just on Phoenix I'm just hitting the send button which automatically opens up the camera I'm going to scan what I have right here and it gives me the invoice for 500,000 SATs I'm hitting pay right now and off it should go and so there we go and it says the swap already happened so it's it's instant with lightning so when I jump back I should EXO of this and I should see an incoming transaction and very quickly here there there it is 498,000 SATs then some odd SATs so I swapped back from lightning to liquid even faster doing it with uh with lightning as a sender because lightning is instant and I get my liquid Bitcoin more or less instantaneously into my jade it's now secured by Hardware so just to review what we just did I sent over a million SATs to Phoenix this established a large channel to my lightning wallet so that I can then you know use it I can spend and I can receive and then I swapped half of it back or whatever you designate I swapped a bunch of it back to liquid so I could skure it and now I've got liquidity going in and out I'm not going to really have to worry about onchain fees at this point with my lightning wallet because I've got that big Channel and I it won't be a problem moving forward okay so let's say that you've been using liquid you've been stacking with liquid and you're securing it um you know in in either a hot or a cold wallet with a jade or something like that but you've reached a threshold where you're now thinking to yourself okay I think it makes economic sense and for me I'd be more comfortable if I had my stuff on chain secured with Hardware not on the liquid Network anymore but like the main Bitcoin chain and this makes economic sense to me to pay that onchain fee put in cold sour for the extended future okay great what are you going to do now well if you're on blockstream green you're going to want to get back over to Sid swap if you're already sitting on Sid swap then you're already where you need to be uh but nonetheless I'm going to go ahead I'm going to send over let's say 2 million SATs to Sid swap so I've got them both open here I'll just go to Sid swap I'm going to hit uh receive up top top right on it's it's a lot more obvious on the mobile version but nonetheless you're going to hit receive and I'm going to generate an address I'm going to copy that address jump back over to blog room green I'm going to hit the send button I'm going to paste in the address we're going to say how much we'd like to send so two 2 million SATs it's about 760 bucks at the time recording this video I'm going to hit review okay you're sending this address this amount that looks good I'm going to hit send and then on my block stream Jade which I have again videos down below I'm just going through I'm approving it I say that looks good off it goes that is now sent great blockstream green we don't need you anymore we're going to jump over and we should see yeah already here's an incoming transaction we're just going to wait 2 minutes for it to be fully confirmed and then we're going to figure out how to Peg out directly into our Hardware wallet uh on another wallet we're going to go into Sparrow wallet secured by a cold card all right so we have our two confirmations we have 2 million SATs sitting here uh in Sid swap great so we now want to Peg out so that we can get these 2 million STS into cold storage and they're going to sit there for the an extended period of time we don't need day-to-day quick cheap transfers we just want this is our savings okay so what I'm going to do is I'm going to get the Bitcoin wallet that I want to send to okay and so I'm pulling up this is an example wallet but uh one that I use for tutorials but um we're going to pretend that this is my SP wallet linked to my cold card because that you know that's a a solid setup that I really like okay so um and if by the way if you're curious about cold card Sparrow wallet again videos for everything linked down below if you're unfamiliar nonetheless you're getting it into the wallet that you want to save in I'm going to hit receive I'm going to copy an address I'm going to uh give it a label I'll say liquid uh Peg out okay I'm going to copy this address so I just need a a Bitcoin address that I'm sending to I'm going to jump over to Sid swap I'm looking for the peg in andout button again okay and now I'm going to hit the tab over to Peg out I'm going to paste in my address here and I can see it looks the same that looks good how much am I pegging out I'm going to Peg out all of it otherwise you could type in a specific amount but I'm typing that in uh this is in lbtc not in SATs so that's why it's a decimal nonetheless okay I'm sending this much out I should receive an onchain transaction for 198,00 7 8,727 SATs okay um it shows that the fee suggestions uh it's going to be around 46 uh 46 SATs per bite onchain so I am incurring an onchain fee in order to get this into my cold storage so this is why we let it build up to a certain point until and on onchain fee makes sense economically uh for us to do so okay I'm going to hit the peg out button this is a hot wallet so it should just Auto send and so we can see lbtc going out uh BTC will be headed into my sparrow wallet in fact I should get a notification um relatively quickly from Sparrow wallet itself as it updates and sees that onchain transaction coming in so we'll just give it a second here as we're going through uh and just to note also over on Sid swap here it does give you a transaction ID that you can audit and you can check um and so I believe it will wait for the two confirmations the the two minutes uh to trigger that um but then as soon as it does we'll see it come through in Sparrow so we'll just jump ahead when that happens all right and so we got a notification here Sparrow wallet incoming uh 1.98 million sass coming into the wallet we can see it here and then uh back here we said it did show completed I clicked outside of it but nonetheless we got our swap so we moved from liquid into onchain Bitcoin that would be then secured by my cold card and viewable in Sparrow wallet and we did that um by uh only incurring that onchain fee when we were ready when we had built up enough Bitcoin to make economic sense instead of sending little pieces of 50 and 100 bucks here and there um much better in my opinion for onchain fees uh to do it this way so I want to finish off here by adding uh just a few tips and tricks um that I think are important to know through this process number one um we of course we sent into to Phoenix um via a swap uh from liquid and we established a large Channel Now Phoenix does something called uh uh splicing so that when you receive a transaction that goes up above the total amount of the capacity of the channel connected to you you'll incur another onchain fee to uh increase that capacity that inbound capacity um however the inverse is true if you were to send out onchain from Phoenix and uh so what I'm getting at here is if you want that large channel to to remain then it might not be the best idea to send out from Phoenix onchain because you're actually shrinking the size of your lightning Channel that's available to you so if you don't want to do that don't send out onchain from Phoenix because your lightning channel will shrink and if you go to receive again a higher amount that goes above that new low lower balance you're going to hit with another onchain fee so be cognizant of that you can go in the settings and see the size of your channel there uh if you like um up next uh I wanted to mention that there are a lot of exchanges that do deal with the liquid Network and so um there's a whole bunch of them that you can you can look at uh and if I can pull it up here um really quick so this is liquid. net and they do have a list of uh various entities that do have support for liquid so if you're curious and you want to see if you have a place where you can withdraw directly to get liquid and and not do as many Hops and do the Sid swap thing then there may be some options in there for you and then finally I wanted to mention that all of the wallets that I was using today whether it be the blockstream jade blockstream green just like the hot wallet that I have um Sid swap uh Phoenix literally everything fun fact all of the seed phrases from those were generated from a cold card that I have using something called bip 85 and what that did is it makes it so that I don't have to keep all of these different seed phrases separately written on paper or in steel or whatever um I can just have a singular cold card and of course like a steel backup for that cold card and at any point point if I were to delete Sid swap or the green or my jade went kaput or whatever um rather than having to fish around for the seed phrase I just have a little a little list of okay account number one from the cold card is for this Wallet account number two is for this so I can go and I say oh crap I deleted Sid swap but there's money in there um I go back to my cold card go to the bip 85 section and say uh what was account number five and it'll give me my seed phrase and I can recover cover so I I thought that was just an interesting little tidbit not directly related to uh the point of this video but if you're curious about that I will link down to how bip 85 works as well if you want to investigate something similar so to wrap up with final thoughts here um number one find an exchange that allows you to withdraw with zero fees where they'll cover the onchain fee because they're being efficient and batching transactions or better yet Perhaps find an exchange where you can withdraw with lightning or encourage your exchange to support lightning and liquid and all of that stuff I think it's a a great option and helps a lot when it comes to fees there is another way to go about this if you just have access to lightning which is not as uh there's still there's more trust involved with it you could let a balance on an exchange build up and then directly withdraw to Phoenix and get that large Channel and then hold it the trade-off there being that you're going to sit on the exchange for longer and then secondly once it gets to Phoenix you don't have that cold storage option that you have with liquid okay so be cognizant of that nonetheless I I don't mind the tradeoff with the Federated model uh in the interm and it's going to be up to the individual but what is your threshold where you might be okay with uh using liquid if it gives you the ability to have cheap fees and it gives you the ability to secure with Hardware um and then you can always swap back to onchain Peg out whenever you see fit um and then finally of course the name of the game is your long-term savings on chain secured by Hardware I still think that is the gold standard and what we should all um uh you know aspire to but if on the pathway there you want to be as efficient as possible and you don't want to be bleeding SATs this might be a great option for you I'm curious to hear what you guys think what do you think of this flow of with the existing tools that are there what would you love to see change with these tools to make them more accessible and easier or do you have a preferred method that maybe isn't this that can help you along the way as well I would love to hear what you guys are doing in the comments uh with uh being as efficient as possible with onchain fees while still retaining self- custody as best you can please let me know I'd love to hear from all of you thank you guys so much for watching as always please do like subscribe and share this video all those things help a ton that little like button is just below please tap it share this on whatever socials you may be on and with anybody that you think May benefit from being able to utilize the low fees with these various tools and then finally please do subscribe on I'm on the war path to get 100,000 subscribers and if you can help me by simply subscribing yourself uh that would be a huge help along that road and I hope to get there in the next year or so uh outside of that if you really liked this you can do a couple things you can hit all the previously mentioned sponsors uh hoddle hodle coin kite cedor nun chug and start 9 they're all down below and if you really liked what you saw and you love the tutorials but maybe they're not quite scratching that itch and you need some extra help you can go to my website BTC sessions. CA and there you can book me for oneone sessions so that I can help you along with anything that I did here and anything else maybe setting up Hardware some of the basics around that nodes lightning all of that can all be booked for 101's and I can help you through so that you can level up quicker anyways with that I am out have yourselves a wonderful day or evening wherever you may be see you guys next time for your daily session huddle the [Music] Bitcoin

Channel: BTC Sessions

Views: 21,786

Keywords: bitcoin, btc, btc sessions, bitcoin canada, btcsessions, bullish bit, why are we bullish, lightning session, Bitcoin, BTC, Buy Bitcoin, Bitcoin Fees, Lightning Network, Liquid Network, Bull Bitcoin, SideSwap Wallet, Blockstream Green, Blockstream Jade, Phoenix Wallet, Boltz Exchange, Sparrow Wallet, Coldcard Wallet, Bitcoin Tutorial, Bitcoin Guide, Low Fee Bitcoin, Bitcoin Savings, Efficient Bitcoin, Bitcoin Wallets, Bitcoin Security, Minimize Bitcoin Fees

Id: 5kNMJd-Ts2c

Length: 52min 7sec (3127 seconds)

Published: Mon Nov 27 2023