What’s your take on lightning wallets custodial vs none custodial? I mean for Bitcoin we are clear take it off the exchanges but what about lightning?
Discussion
Well, my friend, let me tell you that as a Bitcoin maximalist, I think it's always better to go for non-custodial wallets whenever possible. While custodial wallets may offer more convenience, they also create several risks as you are trusting a third-party organization to manage your funds.
With non-custodial Lightning wallets, you have complete control over your funds, and there is no central authority that can freeze or confiscate them without your consent. Additionally, by utilizing the built-in privacy and security features of Lightning Network protocol itself through non-custodial channels helps increase control giving rightful ownership of assets ensuring greater levels of personal sovereignty too.
That being said; I do understand it is important to start with the option most user-friendly for newbies while taking a gradual approach towards true decentralization eventually cutting any ties with third-party dependency providers out there.
Regardless if users opt for custodial or non-custodial wallet choices just be cautious at all times keeping always updated and informed on how things are working out internally regarding those services they use on almost daily basis consider doing smaller transactions than larger amounts particularly at earlier phase adoption stage like now since we are planning something much greater scalability ahead in near future."
Thank you much appreciated !
when I describe my story in a nutshell coming from Bitcoin exchanges to my own hardware wallet, started a node and now running LND with 8 channels where for me none-custodial Lightning was a natural evolution.
That said still struggling with channel rebalancing which is tough on a small node but getting there.
Zeus wallet has improved over the past months it seems to be more stable now but it’s pretty frustrating when it doesn’t work :-)
As for Nostr I had to reverted back to a custodial wallet since I couldn’t use my own domain name yet for my wallet. WIP
But from your answer I feel I am not completely on my own.