Lightning or on-chain: which one should you use to get paid?
Short answer. Use Lightning for invoices, tips and everyday payments: the money arrives in seconds. Use an on-chain Bitcoin address for large amounts that you plan to keep. Also use it to move savings to a hardware wallet. Kute shows both on the same Receive screen.
Bitcoin has two ways to move. On-chain payments go into the blockchain, the public record of every Bitcoin payment. A new block, a group of payments, comes about every 10 minutes. People usually treat a payment as final after a few blocks. Lightning is a fast payment network on top of Bitcoin. Payments move between wallets in seconds, and they do not wait for a block.
Side by side
| Lightning | On-chain | |
|---|---|---|
| Speed | Seconds | About 10 minutes per block, often longer to be final |
| Fees | Small routing fees | A miner fee that depends on how busy the network is |
| Best for | Invoices, tips, paying people | Large amounts, savings, hardware wallets |
| How you share it | A Lightning address or a one-time invoice | A Bitcoin address |
| In Kute | [email protected], or a Lightning invoice | The Bitcoin address on the same Receive screen |
What other wallets charge for each
Fees differ a lot between apps, and many charge differently for Lightning and on-chain. Here is what two popular Lightning wallets publish (checked 20 October 2026):
| Wallet | Lightning | On-chain |
|---|---|---|
| Phoenix | Send: "0.4 % + 4 sat". Receive: "0 (no fees)", or "1% + mining fees" when Phoenix needs more room to receive | Mining fees. Deposits need 3 confirmations before they move to Lightning |
| Wallet of Satoshi | Variable routing fees; receiving has "no platform-specific fees" | "1.95%" plus the miner fee (self-custody) |
| Kute | The app shows fees before you confirm. The Kute fee applies to conversions | You pick fast, medium or slow, with the fee for each shown first |
When to pick Lightning
- You send invoices and want to be paid the same day.
- The amount is small or medium.
- You want one address you can reuse. See what a Lightning address is.
When to pick on-chain
- The amount is large and you will keep it as savings.
- You want it to go straight to a hardware wallet. Hardware wallets in Kute hold on-chain Bitcoin. See hot wallet vs hardware wallet.
- The payer can only send on-chain, as some exchanges do.
You do not have to choose up front
The Receive screen in Kute shows one QR code with a Bitcoin address and a Lightning option. The payer's wallet then uses the option that it supports. If you know what you want, switch the QR to Bitcoin only or Lightning only.
Ready to try it? Follow how to receive a Lightning payment as a freelancer.
Questions people ask
Both are Bitcoin. Lightning suits everyday amounts. For large savings, many people prefer on-chain Bitcoin on a hardware wallet.
Sources
- Phoenix FAQ (ACINQ), checked 20 October 2026
- Wallet of Satoshi Disclosure Document v1.23, checked 20 October 2026
- Kute FAQ, kutewallet.com
- Kute app documentation: Bitcoin and Lightning, October 2026
This post explains how things work. It is not advice about what to do with your money. Features and fees can change; the app shows the current fee before you confirm.