Phoenix Wallet Review
Phoenix is a Lightning, non-custodial bitcoin wallet that enables you to send, receive, and store bitcoin. It is open source, which means that anyone can review and contribute to the code.
Phoenix is a bitcoin non-custodial wallet that allows you to send, receive, and store bitcoin. It is an open source wallet built on top of the Lightning Network to enable instant and low-cost transactions. It supports Electrum server and Tor for advanced users.
How Phoenix wallet works
To begin using Phoenix bitcoin wallet, you must first download the app and create a new wallet. It is available on both Android and iOS. After installing the wallet, you need to back up your wallet with a 12-word seedphrase in case your phone is lost, broken or stolen. To do this, you need to click the settings gear icon on the bottom left, click recovery phrase and click display seed.
You need to save the seedphrase somewhere safe. If you lose your seedphrase and your phone, you have completely lost your funds.
You can easily send and receive bitcoin after setting up your wallet by scanning QR codes or using Lightning invoices. The app also includes a bitcoin-to-fiat currency converter, which allows you to see the value of your bitcoin holdings in your local currency. Please note that the Android version of the application has a restricted selection of fiat currencies to show your balance.
Phoenix is primarily intended for conducting transactions through the Lightning Network. It serves as a native Lightning wallet, effectively operating as a Lightning node that runs on your phone. In the channel details page, the app displays the balance and capacity for each channel. However, you can use the “swaps” feature to send and receive bitcoin on-chain. This approach helps to keep transaction fees low and provide a seamless experience for users who primarily use the Lightning Network.
Phoenix wallet fees
Phoenix wallet splicing: Splicing is a technology introduced by Phoenix wallet that allows you to dynamically resize your Lightning channels without having to close and reopen them. This new technology has reduced Phoenix wallet fees. When you open a Lightning channel, you have to pay a fee. Splicing allows you to add or remove funds from your channel without incurring this fee.
In July 2023, the Phoenix wallet introduced a new fee structure following the implementation of the splicing feature. The previous 1%/3000 sat fee on inbound liquidity has been replaced. Now, when adding liquidity to the Lightning Network, the fee is based on the mining fee for the on-chain transaction. The wallet will inform you in advance if an incoming Lightning payment incurs a channel management fee. This allows you to have better control over fees when receiving Lightning payments.
The beta version with new fees is currently available for Android users. You can apply for the beta version by emailing [email protected].
|Operation||Fees before splicing||Fees after splicing|
|Sending via Lightning||0.05% – 0.5%||0.4%|
|Receiving via Lightning||no fees||no fees|
|Sending on-chain||mining fees||mining fees|
|Receiving on-chain (swap-in or Lightning with insufficient liquidity)||1% with min 3000 sat||mining fees (+ 1000 sat one time)|
Because Phoenix runs natively on Lightning, if you are receiving on chain bitcoin, you should look to use an on chain wallet to avoid having to pay fees associated with swaps.
Pros and cons of Phoenix wallet
On the positive side, Phoenix Wallet features a user-friendly interface, making it accessible to newcomers in the Lightning Network space. Phoenix LNURL feature simplifies Lightning Network interactions. Additionally, the wallet is non-custodial, thus reducing the risk of losing funds to hacks or internal mishandling. Phoenix wallet is also open-source, contributing to its transparency and trustworthiness. The wallet is available on both Android and iOS platforms, catering to a wide range of users.
However, Phoenix Wallet does have some drawbacks. While Phoenix Wallet’s interface is easy to use, newcomers may find it challenging to understand the complexities of the Lightning Network. New users may find its fee structure challenging to grasp, which could lead to confusion or unexpected costs.
Is Phoenix wallet safe and legit?
Phoenix wallet is considered a safe and reputable bitcoin wallet. Developed by ACINQ, a well-known company in the Bitcoin community, Phoenix Wallet is an open-source, non-custodial wallet. Its open-source nature allows the community to review its source code for potential vulnerabilities, while being non-custodial ensures you have complete control over your private keys and funds. The ACINQ team actively maintains the wallet, providing regular updates and security patches. Additionally, the wallet has received positive feedback from the Bitcoin and Lightning Network community.
More information about Phoenix Lightning wallet
|Replace by fee (RBF)|
|Operating System (OS)|