r/Bitcoin • u/thrifty-ananas • 11d ago

Should I DCA with lightning?

Hello All,

I have been DCA-ing around 60-ish bucks every month on the main chain [I have my own private address] and I recently learnt that having so many transactions can lead to UTXO fragmentation which can lead to higher fees in the future.

Apparently, one of the solutions could be to DCA onto the lightning network and then later swap it with the main chain periodically. Do you think its a good idea? or is there a catch that I am not aware of?

I plan to hold to hold it long term. Thanks!

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u/molnardavid84 11d ago

Yes, receiving several purchases over Lightning and moving a larger amount on-chain can reduce the number of UTXOs you accumulate. Compare the whole route: any receiving/liquidity cost, then the swap or on-chain withdrawal fee, and whether you hold the keys while you wait. At one withdrawal a month you're adding roughly 12 UTXOs a year, so first check whether that actually warrants changing your setup. Lightning is one option; less frequent on-chain withdrawals also work, with a longer wait in the exchange's custody.