Advice on Channel Size for Lightning Network

Hey there, looking to set up a Lightning channel with 20k sats. Found a peer willing to go for it, but their fee is 1,000,000 msats. Anyone have links for checking the min. funding and fee rates? What’s the best amount to open a channel?

1,000,000 msats is actually 1,000 sats. Maybe you’re mixing it up with the node's min relay fee of 1000 sat/kvB? That’s the standard minrelayfee for Bitcoin nodes. You’ll need to factor in on-chain fees too. If you're sticking with 20k sats, just be aware you might be short for the fees.

For that little amount, I’d suggest a custodial LN wallet. It’s easier to use low-fee altcoins through instant exchanges. Honestly, trusting a third party with small amounts isn't a big deal. It's a pain to deal with channels and on-chain fees.

Totally agree with you, LoyceV. For 20,000 sats, MUUN or Wallet of Satoshi could work well. If you’re going above that, check out the phoenix wallet. They give you a seed phrase to back up your funds and handle channel management automatically. Just ensure you meet their minimum funding requirement.

I doubt Phoenix has issues with smaller transactions, as long as you cover the initial 1000 sat fee for the first channel. It’s been a minute since I last used it, but I think your channel can grow larger than that first transaction, so no need to set up a new channel for future payments.

He should definitely pay with LTC or DOGE. 20k is kinda weak for LN. I did a thread before about using NICEHASH and KRAKEN for LN payments. Let me dig it up. I remember sending from NiceHash to Kraken and back, with screenshots. Was around 2023.