"I've been thinking about what's the best strategy for you if you're going to be saving in Bitcoin little by little and I think you need to download a new wallet."

Back in Christmas I gave my nephew his first sats and set him up with a Mutiny wallet to receive them. Today, I had him migrate from Mutiny to Phoenix, with all the troubles associated, so that he can buy extra liquidity, at least for a year.

The problem

Last December I sent my nephew his first 100,000 sats. He setup a Mutiny wallet and after the channel setup fee, he ended up with around 95,000 sats.

He is curious about Bitcoin and yesterday he asked me if I could help him turn into Bitcoin some cash that his grandparents had sent him. The idea seemed simple, my sister gives me the cash and I send him the equivalent amount in sats.

But...he only had 64,000 sats of inbound liquidity. I tried sending him 60,000 sats with no luck.

He had an inbound liquidity problem. It's already hard to find people who will pay you in Bitcoin for mowing the lawn. Let's not make it even more difficult with Lightning channel management.

So I decided to move him over to Phoenix so that he could buy liquidity.

The move

The move was cumbersome and I hope he doesn't need to do something similar again:

1. Close the Lightning channel on Mutiny and pay the closing fees
   • The 95,000 sats now sit on-chain and can't be sent to Phoenix
2. Download Phoenix
3. Send me a Lightning invoice from Phoenix
4. I send him a lump sum of sats from my Mutiny wallet to his new Phoenix wallet
   • The money from the grandparents
   • 95,000 sats to match what he has on-chain at his Mutiny wallet
   • Some extra to cover for the Lightning channel setup fee and to buy extra inbound liquidity
5. He then pays approximately around 15,000 sats to add 1 million sats of inbound liquidity
6. He sends me the 95,000 sats from his Mutiny wallet to an on-chain address on my Mutiny wallet
   • I'm not thrilled, but this is the price of orange pilling a relative

The silver lining

The silver lining is that my nephew now wants to learn about on-chain and Lightning, how they work and how they're different.

I see a Bitcoiner in the making 😁

In summary:

Mutiny is a good wallet for established Bitcoiners and Nostr users. For a new Bitcoiner getting started, Phoenix is the way to go.

Notable notes

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nostr:note1enteftxmfdn4wecsjkjh6fayg8yva9xtln5src45y0ylxaul6cjscwf80q

Recommendations

Karnage

Karnage is the #1 Nostr UI designer. If you're using Nostr today, you're using his (or her) designs.

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— Alejandro

This newsletter is for educational purposes. It does not represent financial advice. Do your own research before buying Bitcoin.