What is ‘UTXO consolidation’ and how can it help me reduce transaction fees? \ stacker news ~bitcoin

What is ‘UTXO consolidation’ and how can it help me reduce transaction fees?bitbox.swiss/blog/what-is-utxo-consolidation/

2442 sats \ 50k boost \ 9 comments \ @joko 7 Dec 2023 bitcoin

Here's a simple explainer on how UTXOs work, how transaction costs are calculated and what UTXO consolidation is.

This comes after repeated questions from our customers about high transaction fees, because they use a DCA plan weekly via Pocket or Relai and ended up having hundreds of small UTXOs.

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12 sats \ 0 replies \ @Zepasta 7 Dec 2023

🫡

12 sats \ 2 replies \ @Catcher 7 Dec 2023

Nice article, I loved pocket and Relai until ordinals came into play. Now I'm in the 21bitcoinapp club:) 1000 sats withdrawal flatrate and you can dca daily if not hourly and still have 1 UTXO after withdrawal

21 sats \ 1 reply \ @joko OP 7 Dec 2023

Both are great options! But why in gods name would you DCA daily / hourly lmao

0 sats \ 0 replies \ @Catcher 7 Dec 2023

Because you can 😂

5 sats \ 1 reply \ @JReeCoin 7 Dec 2023

I love this guide...

0 sats \ 0 replies \ @joko OP 7 Dec 2023

Thanks!

0 sats \ 0 replies \ @Xlindo 7 Dec 2023

👀

0 sats \ 1 reply \ @piecover 7 Dec 2023

It's simple than less difficult than most people think, you simply put together whatever the amounts you want to consolidate in one address and make another transfer of all together to it or another one you control in your wallet, at least that's how I understand it, it's like melting small chunks of bitcoins down to one big chunk together. But you want to wait when transaction fees are cheap enough to do that just because the bitcoin network charges per the amount of data you are putting on the timechain the less data the cheaper.

15 sats \ 0 replies \ @Svoboda 9 Dec 2023 freebie

There will become a time when it is rare for an individual to perform L1 TXs if mass scale adoption happens.

What I worry about is poor information that has been given out for years to DCA and sweep without any future thought behind it. Think global south folks that make a couple bucks a day and may be saving $5-10 bucks a week. If they aren’t staying on top of it, their savings will eventually be dust.