How would one alleviate this? Mix each UTXO when managing?
Discussion
keep the kyc & non separate through coin control & labelling. make sure to consider the tradeoffs of consolidation and also larger and smaller outputs when mixing. consider how you manage your toxic change as well.
if you coinjoin you‘re actually better off with many small amounts of bitcoin, for greater anonymity sets, harder to say definitively who owns them. the larger the utxo the smaller the pool of possible owners
What’s the best mix size? 100k sats?
Well that depends on if you currently spend bitcoin or if you’re stacking. For everyday use 100k is a good size, but imo it’s a bit small for stacking. I would personally consolidate into utxos of at least 1M sats. This number may be different for everyone depending on your means, but my thinking is that it will become increasingly difficult to stack larger UTXOs (relative) in the future when price goes up, so might as well stack those larger UTXOs now when you can. Also if you’re going to be stacking or earning bitcoin for a long time, you can quickly end up with a lot of UTXOs you need to manage
Nice. Thanks for that info.
Sparrow makes all of this very easy to implement.
Yep, but unless you’re a baller most likely your UTXO set won’t stand out in the crowd. I would keep them at least 1M sats for stacking. There will be plenty of time to earn or buy smaller UTXOs in the future when number go up