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I only use on-chain once a month when selling my fiat. Its like 12 utxo per year, big ones. For me UTXOs are not an issue.
For a newbie that is constantly DCA'ing small amounts, that will be a problem.
Is something like 1 million sats an ideal UTXO? I foolishly swept all of my KYC coin into a single UTXO and if/when fees go back down, plan to split it up again.
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Not really. You should have many utxo with many different amounts. 1M, 3M, 5M, 10M, 21M. Each one will be used at a different moment you need.
Example: you need to open a 5M sats LN channel. You will not use a 21M utxo or 2utxos of 2M + 1M, but a 5M utxo.
You get it now?
So leave that utxo as it is now. Start building new ones.
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Thanks Darth!
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