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519 sats \ 0 replies \ @DarthCoin 6 Nov 2023 \ on: What's Your Strategy for UTXO Consolidation in Light of Privacy & Fee Trade-offs bitcoin
My main focus is to organize my stash on the 3 levels: HODL, cache, spending (think like a bank)
https://i.postimg.cc/MTL2kvT0/3level-stash.jpg
From there I use this strategy:
  • 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.
  • 1-5M sats UTXO for opening LN channels on mobile private nodes
  • 10-20-50-100M sats for opening LN channels on public nodes (if you run a public routing node).
  • 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, spending
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