Replying to Avatar Jor

UTXO horror story

Not really horror but. Shitty.

We had been putting a small amount of bitcoin into a wallet every week.

DCA’ing just like most.

Last week we tried consolidating and it was going to cost $150 in fees (over 150k SATS)

Keep in mind the amount being transferred is not a huge amount.

Today we consolidated at 7 sats/vb and it still cost around $80.

I know this was the right play but fuck did it hurt.

Just some advice for people who might not be familiar with UTXO management (like me when the majority of these sats were sent)

An expensive lesson but at least we were able to move them at such a low transaction fee. Lots won’t have this luxury in the next few years / decades.

Prepare while you can!
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Paul 1y ago

Beginner Question: if you have 1000 $5 buys on an exchange and withdraw, is that 1 UTXO or 1,000?

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Paul 1y ago

scenario is 5M sats withdrawing with hundreds of small buys

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NotBiebs and 69 others 1y ago

You’ll end up with only 1 UTXO if you withdraw after the 1k buys. It’s not a good idea to send small amounts to cold storage.

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Jor 1y ago

That would be 1000 UTXOs

So you’d pay the current transaction fee x1000 if you ever wanted to consolidate them

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Crizzo 1y ago

Only if he withdrew each one individually after buying. While it's still on the exchange it's just an IOU and even if you buy 1000 times before withdrawing the exchange will lump all the buys into one UTXO when you do finally withdraw.

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Crizzo 1y ago

Maybe your exchange operates differently and sends your buys immediately or has an auto withdraw option. Most exchanges allow you to stack up multiple buys before withdrawing.