# Channel liquidity

On Lightning you can only send what's on your side of a channel and receive what's on the other side. Learn how to manage inbound and outbound liquidity.

Canonical page: https://mybitcoinexplorer.com/learn/channel-liquidity
Topic: Lightning Network
Published: 2026-10-29
Updated: 2026-10-30


## Two directions
> Diagram: Orange is your side (outbound); the rest is their side (inbound) — You:Peer

- **Outbound liquidity:** your balance in your channels. That's what you can **send**.
- **Inbound liquidity:** your peers' balance in channels with you. That's what you can **receive**.

If you open a channel with 1,000,000 sats, at first you have 1,000,000 outbound and 0 inbound: you can pay, but you can't be paid until you spend some.

## Getting inbound liquidity
- **Spend:** paying moves balance to the other side.
- **Ask a peer to open a channel to you**, or buy one from a liquidity provider (a "liquidity ad" or lease).
- **Swaps:** send funds out on-chain via a submarine swap, keeping the channel capacity.
- **LSPs:** many mobile wallets use a Lightning service provider that opens channels with inbound capacity as needed.

## For merchants
A shop mostly **receives**, so it needs plenty of inbound capacity. Planning liquidity is part of running Lightning payments.

> MyBitcoinExplorer's planned Lightning payments will need owner-funded channels and enough inbound capacity before being turned on. We won't show a Lightning button that can't actually receive.


## Balancing channels
Routing nodes "rebalance" by paying themselves in a circle, moving funds from a channel that's too full on their side to one that's too empty. It costs routing fees but keeps the node useful in both directions.

## A merchant's checklist
- Inbound capacity at least as large as a day's expected sales.
- Channels with several well-connected peers, not just one.
- A plan to move received funds out (swaps or closes) as channels fill.


## Key takeaways

- You send with outbound liquidity and receive with inbound liquidity.
- A new channel you fund starts with all-outbound balance.
- Merchants need inbound capacity to receive payments.

## Common questions

### Why can't I receive a Lightning payment?

Your channels probably lack inbound liquidity, or your node is offline.

### Is liquidity the same as capacity?

Capacity is the channel's total; liquidity is how it's split between the two sides.

### What is inbound liquidity?

The amount your peers hold in channels with you, which is how much you can receive.

### Can I buy inbound liquidity?

Yes. Liquidity providers and marketplaces sell channels opened toward you.

## Related lessons

- [Payment channels](https://mybitcoinexplorer.com/learn/payment-channels)
- [Lightning routing](https://mybitcoinexplorer.com/learn/lightning-routing)
- [The Lightning Network](https://mybitcoinexplorer.com/learn/lightning-network)
- [Closing channels and watchtowers](https://mybitcoinexplorer.com/learn/closing-channels-and-watchtowers)