Traders can make withdrawals or deposits starting from 0.000001 BTC, equivalent to around USD 5. The maximum limit for each transaction is 0.05 BTC, equivalent to around USD 2,450.
In recent days, cryptocurrency exchange OKCoin officially announced the activation of transactions on the Bitcoin (BTC) Lightning Network. Users of the exchange already receive support to make almost instant deposits and withdrawals through their node.
According to OKCoin, the fees for transactions in the second layer of Bitcoin will be up to 99% lower. Furthermore, the sending and receiving of funds by users will be more immediate. In January, the company said that it was working on a solution to provide an alternative for traders.
On its website, OKCoin established the minimum and maximum amounts that users can trade. The minimum amount for transactions on the Lightning Network is 0.000001 BTC or 100 satoshis, that is, around 5 US dollars. Meanwhile, they set the maximum amount to withdraw or deposit at 0.05 BTC, that is, around USD 2,450.
“On the other hand, BTC transactions on the Lightning Network are confirmed in just a few seconds. Besides, the fees cost an average of less than USD 0.01,” said the company.
A transaction on the Bitcoin Network can take between 10 minutes and a few hours, and even several days. That will depend on the status of the mempool or the number of transactions awaiting confirmation. The Bitcoin Network (on-chain transactions) processes up to seven transactions per second, they explained.
Depositing and Withdrawing Funds with Lightning
Users should use a guide that OKCoin posted to know how to make deposits and withdrawals using the Bitcoin Lightning Network. They must log in and complete their identity verification to add funds to the platform. After that, they must go to “Assets”, press “Deposit” and select Bitcoin.
“After selecting BTC, users must select the Lightning Network as the deposit method. Then, they must select the account into which they would like to deposit the funds and enter the amount of BTC to deposit. When they are ready to start trading, they must select the Spot account or another trading account,” according to OKCoin.
Users must generate and take the invoice that the exchange provides to paste it into the wallet or app from which they are sending the funds. Regarding withdrawals, they must generate an invoice from the wallet into which they want the exchange to send the BTC.
After generating the invoice, traders must go to “Assets” and select the “Withdrawal” option from the menu. Next, they must choose BTC as the cryptocurrency to withdraw from and select the Lightning Network as the withdrawal method.
OKCoin is among the exchanges that have announced their support for these types of transactions. Exchanges that have approached the Lightning Network with their nodes include Kraken, Paxful, and Bitfinex.
The Lightning Network is a decentralized instant micro-payment network that the Bitcoin blockchain uses. The objective is to start a channel of transactions not recorded until the last payment between both parties is complete.
By Alexander Salazar
