# On-chain Balance

2\. [What is an On-chain balance?](#what-is-an-on-chain-balance-and-why-do-i-have-one)

2\. [How to deposit funds to the On-chain balance?](#how-to-deposit-funds-to-my-on-chain-balance)

3\. [How to redeem/withdraw funds from my On-chain wallet to somewhere else?](#how-do-i-redeem-the-funds-from-my-on-chain-balance-to-another-on-chain-wallet)

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## What is an On-chain Balance and why do I have one? 

A lightning network channel is a special type of on-chain bitcoin transaction. 

* When opening a channel, you are transferring bitcoin from your **On-Chain Balance** to top up your **Spending Balance.**
* When a channel is closed, the bitcoins that were on your **Spending Balance** will be relocated to your **On-Chain Balance**.

<figure><img src="https://content.gitbook.com/content/WIUBf3ZZaBGu2ee6Y8lU/blobs/W42kFAQEnoT4sFwudYJS/image.png" alt=""><figcaption><p>Your on-chain balance can be found in the Node section of your Alby Hub</p></figcaption></figure>

{% hint style="info" %}
Your on-chain wallet can be restored anytime by a 12-word recovery phrase available it the Settings of your Alby Hub.
{% endhint %}

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## How to deposit funds to my On-chain Balance

1. Go to the "Node" section, click on "Advanced", then click on "Deposit Bitcoin"
2. The QR code shown is your On-chain wallet, you must send bitcoin to that on-chain address from another on-chain wallet.&#x20;

{% tabs %}
{% tab title="1. Deposit Bitcoin" %}

<figure><img src="https://content.gitbook.com/content/WIUBf3ZZaBGu2ee6Y8lU/blobs/Qjca9Krh4U8C1rUouW6I/Screenshot%20from%202025-01-16%2023-56-08.png" alt=""><figcaption><p>Click on "Avanced" then "Deposit Bitcoin"</p></figcaption></figure>
{% endtab %}

{% tab title="2. On-chain address" %}

<figure><img src="https://content.gitbook.com/content/WIUBf3ZZaBGu2ee6Y8lU/blobs/AHeKFVtYKt2od4ZZea7r/Screenshot%20from%202025-01-16%2023-56-31.png" alt=""><figcaption><p>Scan that QR code with another on-chain wallet and top up with on-chain funds</p></figcaption></figure>
{% endtab %}
{% endtabs %}

It will take up to 6 block confirmations for your bitcoin to reach your Alby Hub On-chain Balance

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## How do I redeem the funds from my On-Chain Balance to another on-chain wallet? 🔄

You can withdraw funds from your on-chain balance to any on-chain bitcoin address.

To do this, go to the Node section, click on "Advanced," select "Withdraw On-Chain Balance". This will send us to a new page where we can input the amount and the address of the receiving address.

<figure><img src="https://content.gitbook.com/content/WIUBf3ZZaBGu2ee6Y8lU/blobs/h2PJ76XxYUqGvKrENYSq/Screenshot%2012-19-2024%2018.01.03.png" alt=""><figcaption><p>Click on Advanced and then on "Withdraw On-Chain Balance".</p></figcaption></figure>

On this section simply enter the receiving address (it should be an on-chain bitcoin mainnet address), the amount, and then click on Withdraw.

<figure><img src="https://content.gitbook.com/content/WIUBf3ZZaBGu2ee6Y8lU/blobs/qBV81FdMiE3zjeadLWrq/Screenshot%2012-19-2024%2018.01.56.png" alt=""><figcaption><p>Enter the on-chain bitcoin address where you want your On-Chain Balance funds to be redeemed.</p></figcaption></figure>