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Replying to Avatar Jor

Contrary to popular belief, there are TWO areas of consideration with UTXOs

1. Future transaction fees

You want a smaller amount of larger UTXOs to save future transaction fees

2. Future privacy concerns

You want a larger amount of smaller UTXOs to protect your privacy (backwards and forwards)

My advice to clients?

Have a good mixture of UTXOs

Some fattys for your generational sats and some small ones for future spending and/or lending

And if you have a bunch of big ones or a bunch of small ones, do not panic. Just change your strategy going forward!

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Chip 4mo ago

The struggle is knowing what will be “big” and “small” when you need to access them. I’m with ya - this is the one time I agree with diversification. 😂

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