Yep that’s still my issue.. privacy vs UTXO management
Find it very difficult to know what to do
Two reasons for UTXO management:
- Fees
- Privacy
Regrettably, prioritizing maximum privacy conflicts with the objective of low fees, and vice versa. It's a matter of striking the right balance.
I suggest to check out nostr:npub1rxysxnjkhrmqd3ey73dp9n5y5yvyzcs64acc9g0k2epcpwwyya4spvhnp8 guides on this.
Discussion
same tbh ngl.
esp since recently.. some ppl are claiming they think even 5m sats big utxos will become unspendable.
I doubt they will, at least in our lifetime. I think your smallest for super safety should be about 1m. Larger if at all possible, but over time if it makes sense with fees.
thank you tatey watey
what if you're holding for your children? maybe they were older guys that were saying this and they were thinking ab their children and grandchildren etc
Yeah absolutely. I still don’t think they’d become unspendable, but it is definitely a possibility. If you’re doing that, I think best case would be to dedicate a wallet for kids, grandkids to inherit, deposit at the frequency you want, and then snipe low fees to just get that UTXO as fat as possible. If it’s a one time deposit just to set it and put the seed phrase in the will and never look back, I think it would be safe to deposit at least 3m. That will also allow for you to manage that UTXO amongst others if you have to add on later based on how the fee market evolves over the course of years and years.
I don’t think it is good practice to get an UTXO as fat as possible.
Why so? Genuinely asking because I could have the wrong idea.
Privacy.
Consolidating your children's UTXO into a single one will result in the disclosure of their entire stack to the recipients.This approach makes them vulnerable targets for potential attackers.
Ah. Understood. What do you recommend as far as smallest UTXOs and how many you should have? Like I completely understand why you wouldn’t set your UTXO minimum at like 1m sats and just have tons of 1m sat UTXOs. Where do you draw the line of consolidating new UTXOs into those others?
In the end it’s subjective and depends on your stack how you split your UTXOs. Some chunks of 5-50 mio sats UTXOs seems a good long term solution for me. Obviously if you have <1 BTC then 50 mio is too big. Then you aim for the lower end of the above recommendation.
nostr:note1cf84lhhhnmek4qdws0qx5xceh29casmy40xcra2cl0hnhtx58skssjtynx
nostr:npub12n48gztfm3j6m9apws74chdlu2dux9ml2gxw76v95v79wtdjg6zsqdpkxr
This calculator might help:
https://jlopp.github.io/unspendable-utxo-calculator/
My opinion:
- Consolidation of UTXO < 1 million sats is a must
- Even 1 mio sats might be too low for long term (I prefer > 5 mio)
- Never consolidate kyc with non-kyc UTXO
- if possible consolidate UTXO from same source
- Having multiple different UTXO sizes depending on your stack is a good solution
- Coinjoin gives you privacy for future transactions but doesn’t affect past transactions
For example UTXO split for 1 Bitcoin:
1x 0.25
5x 0.1
5x 0.05
For 0.05 not being economically spendable, it takes an insane fee increase. On native segwit it would cost you ~80 k sats at 1000 sat/vB
