You can choose to fund your bitcoin account via an on-chain deposit or by paying off-chain, via lightning. If you are unsure which to pick, this summary should help. πŸ‘‡

  • On-chain bitcoin transactions are recorded directly onto the blockchain. They often have higher transaction fees and the larger the fee you pay, the more likely your transaction is to be confirmed on the blockchain quickly. The average transaction time on the bitcoin blockchain can be around 10-60 minutes depending on fees and how busy the network is. The advantage of on-chain transactions is security and finality and they are also useful for larger payments.

  • The lightning network was created to enable near-instant micro-transactions at an extremely low cost. So lightning transactions are cheaper and faster than on-chain transactions. This makes the lightning network perfect for smaller payments or even micropayments of just a few sats.

In summary:

On-chain transactions:

  • Higher Transaction fees

  • Final settlement on the blockchain

  • Longer processing times

  • Larger transaction amount limit

Off-chain (lightning network transactions):

  • Lower transaction fees

  • Near -instant

  • Good for micropayments

πŸ“š Want to learn more about using Bottlepay to deposit bitcoin? πŸ‘‡

Still want to learn more? πŸ€“ Here are some useful articles below written by CoinTelegraph and Investopedia for a more comprehensive explanation.

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