Not your key not your coin. Not your node not your coin.
Introduction before starting the story:
A few months ago, I invested in a Raspberry Pi 4 + SSD setup. In total, I spent about \(200 (excluding an additional \)50 for a backup power supply to ensure the safety of the Bitcoin and Lightning Node from power outages or potential system damage due to electrical issues), totaling $250.
it’s consumes no more than \(0.4-\)0.5 per month in electricity.
And here are the benefits of running a Bitcoin & Lightning Node, which serves as a starting point for me to share and encourage everyone to invest in running a Bitcoin Node. Previously, I didn’t see many benefits, but I decided to run a Bitcoin Node to support a more decentralized system.
I’m just an ordinary person. Normally, I engage in Dollar-Cost Averaging (DCA) for Bitcoin, ranging from about \(30 to \)100 each month. My experiences with exchanges like FTX have made me cautious about leaving Bitcoin on exchanges (Not your key, not your coin). So, before this, I found ways to transfer Bitcoin out of exchanges most cost-effectively, initially using Kraken (with a withdrawal fee of 1,000 sats) before switching to the current rate (30,000 sats).
These images are the withdrawal fees for On-Chain Bitcoin transactions.
I incurred costs in the P2P process (using Binance) before transferring USDT to Kraken and withdrawing it to my wallet, totaling \(1 per transaction. If I buy Bitcoin in increments of \)30, this means the transfer fee amounts to 3.33%, which is quite high.
This was the latest solution: Binance now supports Bitcoin withdrawals on Lightning (with a withdrawal fee of 100 sats), prompting me to run a Lightning Node on my Raspberry Pi alongside the Bitcoin Node.
I delved into understanding the Lightning Node and realized the need for Inbound Liquidity (to enable our Lightning Node to receive sats). Consequently, I decided to lease a channel with Blocktank, costing about 6,092 sats for 12 weeks (leasing Inbound Liquidity of 0.01 btc). If anyone can find a way to obtain incoming liquidity by networking or opening channels, that would be a way to save on costs.
Benefits I’ve gained are as follows:
The withdrawal fee has decreased from 5,000 - 30,000 sats per transaction to just 100 sats, resulting in savings of \(1-2 per withdrawal, now costing only \)0.02.
Previously, my regular DCA was \(30-\)100 per transaction (5,000-30,000 sats). Now, having a Lightning Node allows me to break down my DCA amount to as low as $10 per week (with a 100 sats withdrawal fee).
Therefore, I can save {{text}}.5 per withdrawal from exchanges each time, considering I withdraw 133 times. With the combined $200 for the Bitcoin and Lightning Node setup, I can save money. If you’re trader, the option of holding funds in Lightning during downtime is intriguing, not requiring consistent long-term holding.
Questions you might want to know to feel more confident:
Q: If my Raspberry Pi 4 fails, will my funds be stuck in the Lightning Node forever? A: No, if you have your secret word correctly recorded. When the Node closes for a certain period, it might force close the channel, which moves Bitcoin from Lightning to On-Chain. You can still access your wallet using the recorded Secret Word and transfer Bitcoin back to your Cold Wallet as before.
If readers have made it this far, thank you for reading through, and if you’d like to support content like this, feel free to zap some sats. Thank you very much.
**
Not your key not your coin . Not your node not your coin
**