Wallet of Satoshi is a popular Lightning Network wallet that allows users to send and receive bitcoin instantly with low fees. This FAQ covers everything you need to know, from basics to advanced tips, in simple terms.

What is Wallet of Satoshi?

Wallet of Satoshi is a non-custodial Lightning Network wallet that enables fast, low-cost bitcoin transactions. It is designed for beginners, offering a simple interface and easy setup.

The wallet supports both on-chain bitcoin and Lightning Network payments, making it versatile for everyday use. It is available as a mobile app for iOS and Android, and it does not require users to manage their own node, as it uses a lightning service provider (LSP) to handle technical details.

How does Wallet of Satoshi work?

Wallet of Satoshi works by connecting to the Lightning Network, a layer-2 solution that enables instant transactions. When you receive bitcoin via Lightning, it is held in a channel managed by the wallet's service provider, but you control your funds with your private keys.

To send payments, the wallet finds a route through the network, and transactions are settled in seconds with minimal fees. The wallet also supports on-chain transactions, which are slower and more expensive but are used for opening or closing channels.

Is Wallet of Satoshi safe to use?

Yes, Wallet of Satoshi is generally considered safe, as it is non-custodial, meaning you have full control of your private keys. However, it is important to note that the wallet uses a lightning service provider, which adds a layer of trust.

You should always back up your recovery phrase and enable additional security features like biometric authentication. While the wallet has a good reputation, no wallet is 100% risk-free, so it's wise to keep only small amounts on your mobile wallet for daily spending and store larger amounts in a more secure wallet.

What are the fees for using Wallet of Satoshi?

Wallet of Satoshi charges a small fee for Lightning transactions, typically around 0.4% of the transaction amount, which is competitive compared to other wallets. On-chain transactions have standard network fees, which vary with network congestion.

The wallet does not charge a separate fee for receiving payments, but sending payments incurs the fee mentioned above. For example, sending $10 would cost about $0.04, making it ideal for microtransactions.

How do I set up Wallet of Satoshi?

Setting up Wallet of Satoshi is simple: download the app from the App Store or Google Play, open it, and follow the prompts to create a new wallet. You will be given a 12-word recovery phrase that you must write down and store securely.

After backing up your phrase, you can start using the wallet immediately. There is no need to create an account or provide personal information, which ensures privacy.

Can I buy bitcoin directly in Wallet of Satoshi?

No, Wallet of Satoshi does not have a built-in fiat on-ramp, so you cannot buy bitcoin directly with a credit card or bank transfer. However, you can receive bitcoin from exchanges or other wallets.

To add funds, you can transfer bitcoin from a centralized exchange like Coinbase or Binance, or receive Lightning payments from friends or services that support Lightning. This keeps the wallet simple and focused on payments.

Wallet of Satoshi vs. other Lightning wallets: which is better?

Wallet of Satoshi is best for beginners due to its simplicity and ease of use, while other wallets like Phoenix or Breez offer more advanced features like channel management and splicing. The choice depends on your needs.

  • Wallet of Satoshi: User-friendly, non-custodial, uses LSP, good for small payments.
  • Phoenix: More control over channels, but requires more technical knowledge.
  • Breez: Includes a point-of-sale feature and is also user-friendly.

If you want a simple, hassle-free experience, Wallet of Satoshi is excellent. If you need more control or higher limits, consider other options.

What are the pros and cons of Wallet of Satoshi?

Wallet of Satoshi offers several advantages: it's free to download, easy to use, supports both on-chain and Lightning, and has low fees. However, it also has some downsides.

Pros:

  • Simple and intuitive interface
  • Non-custodial, you control your keys
  • Low fees for Lightning transactions
  • Fast payments

Cons:

  • Not open source, which may concern some users
  • Relies on a lightning service provider
  • No desktop version
  • Limited to smaller amounts for lightning payments due to channel capacity

Overall, it's a great choice for beginners and everyday use, but for larger amounts, consider a more robust wallet.

Is Wallet of Satoshi open source?

No, Wallet of Satoshi is not open source, meaning its code is not publicly available for review. This is a common concern among privacy-conscious users, as open source allows for independent security audits.

However, the wallet has a good reputation and has been operating since 2019. If open source is a priority for you, you may want to consider alternatives like Phoenix or Breez, which are open source.