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Phoenix is opening a channel slightly bigger than what are you depositing, I could say with a 10% more. With the new version v0.2.0 that comes with the new LN feature named channel splicing. That means from now on you will not have to deal anymore with lots of new small channels for each payment received.

If there’s not enough inbound liquidity, Phoenix will increase the size of your initial channel, but that will still imply an onchain fee. You can setup that fee anyways in Phoenix settings.

So I suggest to start using Phoenix with a big channel, like 1-3-5M sats. Your commit fees will be insignificant comparing with the size of the channel and will not affect you too much. Also instead of paying 4 times (or whatever many times you deposit small amounts) min 3000 sats fees, you will pay only once.

If you start spending from that channel, do not spend all the balance at once, because Phoenix will close it. If you leave some sats, like 1-5% in the channel and make another refill from another LN wallet / source, with an amount bigger than you channel capacity, Phoenix will resize the channel and you will pay an extra fee. If you receive less than channel capacity, will be no fees involved.

So try to size your initial channel capacity to your personal needs for spending. Spend and replace in the limits of the channel will not occur anymore fees and the experience using this wallet app will be smooth.

For each payment you are doing, this wallet is using quite high fees, compared with other nodes. Yes, somehow they have to cover their expenses and support the dev team. Nothing is for free in this world.

This wallet also have integrated swaps onchain ←→ LN channels, so you could practically use it as a personal swap, you could pay instantly onchain with your LN funds and vice versa.

It is very good option for newbies, that just started with LN and don’t know too much about a node management, but still could have a self custody of their funds. Even if you lose your mobile device, you can use the seed words and recover your funds in an Electrum wallet or on another mobile device with Phoenix.

Please also read more of my guides about multiple wallets:
https://darth-coin.github.io/wallets/wallets-en.html

Thanks for the detailed breakdown, this is really helpful for someone just starting with Phoenix and LN! Overall, your recommendation to start with a big LN deposit to get a solid initial channel makes a lot of sense for minimizing fees and maximizing usability, especially for new LN users. So I will go for that!

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The mistake that many new users are doing is they will use ONLY one LN wallet that some infliuencer say to use it. Wrong approach.

Please read "Choose wisely your LN wallets" #583496 don't use only one, use multiple ones. Each wallet have its own particularities and use cases.

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I agree, using multiple wallets for different purposes is the way. Much to learn still!

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