Nostr

GM. UTXO question for #asknostr - I always went by the old adage when withdrawing from my DCA account to cold storage that I should always use a fresh address.

In an increasing fee environment and consolidating UTXOs is more important, is there a reason I would not want to use a previous address that has a balance in it already, if both sats are KYC anyway?

Chris Tavrou 2y ago

You'll still end up with two separate UTXOs, they won't be merged only because they were sent to the same addresses. They come from different sources.

Think of it like putting two literal coins into the same wallet. They're there together but they're still separate coins. When sending two or more coins as part of the same transaction, you're effectively melting the pieces you're sending and a new coin is created in the destination address. If you send another coin to that same address, again you end up with two coins.

Hope this helps!

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Discussion

Diesel 2y ago

Now I feel like an idiot but that makes so much sense. Thank you. Always learning in this space.

Chris Tavrou 2y ago

My pleasure! Btcoin is so new and so different from what we're used to, we're all idiots who are learning about it