UTXO management is a balance between maintaining large enough blocks to avoid stranding Bitcoin in unspendable amounts and reducing fees, and small enough blocks that transaction recipients don’t see the size of your wealth based on your change from a transaction.
With that premise in mind what size UTXOs should be kept in cold storage vs spending hot wallets?
Should truely long term cold storage be kept in a single UTXO to make withdrawals to hot wallets easier or can such withdrawals still be traced back to the root after they are spent from the hot wallet?
What size UTXO is correct to keep in a hot wallet that is large enough to be easily spent and reconsolidated later?
#bitcoin
Bigger is better
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how big is big?
serious Q
Since the OP I have been sweeping from my exchange whenever my balance hits 1M sats. Then consolidating when fees are affordable and I remember to do it. I don’t spend much on chain, but I’m fine keeping a few hundred thousand sats in a hot wallet.
