Nostr Web Client

Studying UTXO management at the moment . Something I’ll be testing when fees are much lower. I use lightning for all my #bitcoin transactions - withdraw from exchange to self custody wallet, zapping on #nostr .

I hold most of my bitcoin in my main wallet and use a small amount of Sats for Nostr in a lightning wallet .

If my Sats are withdrawn from the exchange in 50,000 - 100,000 Sat blocks, is this UTXO too small? Should I keep them on the exchange until I reach 500,000-1million Sats then take them out?

#Asknostr

a289ef66... 1y ago

Use an exchange/broker that you can withdraw with lightning from, then withdraw to your own lightning wallet (non-custodial). Then loop out to cold storage when you have enough for a nicely sized utxo. 500k sats minimum, 1mil+ recommended.

If using a wallet like Phoenix be careful, you need to make sure to loop out because they will splice out your liquidity if you send on chain directly.

You can also send back to your exchange/broker (cheaper than loop out) via lightning, and then withdrawal, but this requires you to trust your exchange a bit more not to lock you funds.

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Discussion

The Bullish ₿itcoiner 1y ago

“If using a wallet like Phoenix be careful, you need to make sure to loop out because they will splice out your liquidity if you send on chain directly.”

Can you explain the loop out part further because I think it happened to me once. I purchased 1 million sats of liquidity and then made an on chain transfer when I reached that amount. After the transfer, my liquidity was reduced (I thought the liquidity purchased would be good for a year).