286 sats \ 3 replies \ @DarthCoin 8 Oct 2023 \ on: UTXO set & consolidation bitcoin
I see you didn't mention at all opening LN channels. It's an important aspect. Many people are focusing only on how the manage onchain, but not LN channels. And is wrong.
You should always keep in mind the 3 levels stash: vault (cold wallets), cache (coin control), spend (LN).
- multiple onchain wallets, with multiple UTXOs, with various amounts.
- never keep just one giant UTXO with all your BTC in it. Split it in small pieces, but not so small. Enough to be able to open regular good LN channels.
- make a good coin control and funds management on 3 levels, before you are moving to your cold storage.
- if an onchain wallet get too many UTXOs, split them into another wallets. Is not so handy to have too many UTXOs in just one wallet and you are killing the node and the app opening it.
I will repeat this over and over:
- onchain is only for opening/closing LN channels
- LN is for day to day use
This is also a super important point @DarthCoin makes. Don't fade the Lightning channels!
Speaking of which, it's not a bad time to open a few big ones now given the Mempool is finally clearing out! Many major players are dumping huge consolidation tx's at the moment which is still keeping fees slightly high (nothing terrible though), but once they're done it should be back at 1-2 sats/vB 🥳
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Good advice
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