You can choose to fund your bitcoin account via an on-chain deposit or by paying an off-chain, via lightning. If you are unsure which to pick, please read the summary of the two deposit methods below:

On-chain transactions are bitcoin transactions that are recorded directly on the blockchain and often have higher transaction fees. The larger the fee you pay, the greater the incentive the miner has to process your transaction over the list of other pending transactions. The advantage of on-chain transactions is security and finality.

The lightning network was created to enable instant micro-transactions at an extremely low cost. The average transaction time on the bitcoin blockchain can be around 10-60 minutes depending on the fees but the lightning network transactions are near-instant as they happen off-chain. Lightning network transactions are cheaper and faster than on-chain transactions but have smaller transaction amount limits. This makes the lightning network perfect for micropayments.

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

  • Instant

  • Micropayments

Here are some useful articles below written by CoinTelegraph and Investopedia for a more comprehensive explanation: CoinTelegraph, Investopedia

Other useful links:

How to complete an on-chain deposit

How to complete a lightning network deposit

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