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Web Wallet Guide

Understanding Risks & Benefits

Web wallets (also called custodial wallets) are Lightning wallets hosted on a server you don't control. Before using one, it's crucial to understand both the advantages and the risks involved. Knowledge is power — make informed decisions about your sats!

⚠️ The Risks

🔐 Not Your Keys, Not Your Coins

  • The operator controls the private keys
  • You're trusting a third party with your funds
  • If they disappear, your sats go with them
  • No way to recover funds independently

🏴‍☠️ Server Compromise

  • Hackers could target the server
  • Database breaches expose user data
  • A single point of failure for all users
  • You rely on operator's security practices

🚫 Censorship & Restrictions

  • Operator can freeze your account
  • Transactions can be blocked or delayed
  • Terms of service may change anytime
  • Potential regulatory pressure on operators

📡 Availability Issues

  • Server downtime = no access to funds
  • DDoS attacks can disable the service
  • Maintenance windows block transactions
  • Internet required at all times

👁️ Privacy Concerns

  • Operator sees all your transactions
  • IP addresses may be logged
  • Transaction history stored on servers
  • Potential data sharing with third parties

💀 Operator Risk

  • Operator could be malicious (exit scam)
  • Business failure = service shutdown
  • No legal recourse in most cases
  • Unknown technical competence

⚠️ GOLDEN RULE: Never store more than you can afford to lose in a web wallet! ⚠️

✅ The Benefits

🚀 Instant Setup

  • No complex installation required
  • Works immediately in any browser
  • No blockchain sync needed
  • Ready to receive sats in seconds

📱 Access Anywhere

  • Use from any device with a browser
  • Switch between phone, tablet, desktop
  • No app installation needed
  • Bookmarkable for quick access

🎓 Beginner Friendly

  • No technical knowledge required
  • Simple, clean interfaces
  • Great for learning Lightning
  • Low barrier to entry

💸 Low/No Fees

  • Often free internal transfers
  • No channel opening costs
  • No on-chain fees for setup
  • Predictable fee structure

🔧 Zero Maintenance

  • No node management required
  • Operator handles all updates
  • No channel balancing needed
  • No hardware to maintain

⚡ Reliable Routing

  • Well-connected nodes = better success
  • Professional liquidity management
  • Instant payments most of the time
  • No failed payment troubleshooting

🎯 Who Should Use Web Wallets?

Web wallets are tools, not vaults. Use them wisely for the right purposes. They're excellent for specific use cases but should never be your main storage.

👶 Beginners

Perfect for learning how Lightning works without the complexity of running a node.

💰 Small Amounts

Ideal for daily spending money — coffee, tips, small purchases under $50.

🧪 Experimenters

Great for testing apps, services, and Lightning features before committing larger funds.

🎁 Receiving Tips

Convenient for content creators receiving small donations and zaps.

💡 Pro Tip: Use web wallets as your "hot wallet" for spending, keep savings in self-custodial solutions!

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