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Jor 4mo ago

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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Discussion

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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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ppatel 4mo ago

But don’t burn all your energy on transaction fee management . Bitcoins inflationary nature will minimise losses. Small transactions with lightning.

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Bitcoin Mises 4mo ago

https://livewallet.space

Check the health of your utxos

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a_priori 4mo ago

For small transactions, consider sending via Lightning to Cashu/ecash, then to the recipient. This should offer pretty good privacy with the tradeoff being custodial risk with the ecash mint. Best to add some time delays to these transactions to minimize the risk of timing analysis. For this, I like keeping a small/medium amount of sats in L-BTC and swapping a little bit at a time into Lightning using Boltz.