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34 sats \ 9 replies \ @BitcoinIsTheFuture 13 Mar \ on: In 5 years will you be making more on-chain transactions or fewer? bitcoin

Likely fewer. I have like 50 UTXO’s on the main chain. I’ve never consolidated, but I need to do that soon.

Just opened up some with a new Phoenix wallet this week

1 sat \ 8 replies \ @Scoresby OP 13 Mar

I'm a fan of this setup: open a big channel with phoenix (2m sats or so if you can), then make a LN to on chain boltz transfer (maybe 75% of the sats depending on how much you think you'll spend) back to your on chain wallet so that you have a good amount of inbound liquidity.

18 sats \ 7 replies \ @BitcoinIsTheFuture 14 Mar

Thanks for the insights.

So I need to admit I’m a bit of a noob with my self custody knowledge. I found my way into Bitcoin at the spring of 2021 top. The 50 UTXOs are within my Unchained multi sig vault. They have instructions there on how to condense but given the size of my stack that makes me a bit nervous sending the whole thing in a way I’ve never done. I may call them to confirm somethings but it looked like a pretty high fee when I checked it out last night.

As for Lighting. I had Blue Wallet, then Exodus(wallet of Satoshi), and now self hosted Phoenix, which I just did this week. So I’m learning about liquidity there.

So much to learn still….

27 sats \ 1 reply \ @Scoresby OP 14 Mar

@DarthCoin has some pretty good guides.

17 sats \ 0 replies \ @BitcoinIsTheFuture 14 Mar

Thanks yeah I check his stuff out often, super helpful. A lot there! That lead me to Phoenix wallet and the feedback on SN. I’ll probably get another one for other purposes like he mentioned.

5 sats \ 4 replies \ @chairman_pretense 14 Mar

Multisig transactions are larger, so will also increase the fee. Well worth looking into so you can consolidate and futureproof your stack.

0 sats \ 3 replies \ @BitcoinIsTheFuture 14 Mar

Ah didn’t realize that impact. 165k sats to consolidate in the next 6 blocks ouch. I’ll keep watching

10 sats \ 2 replies \ @chairman_pretense 14 Mar

If you take a look at mempool.space and the predicted next block template, you can filter by transaction type for consolidations. You'll see you're not alone - it's painful but hopefully not something you'll need to repeat frequently.

Stacking in a lightning wallet then swapping for onchain etc. in future will help avoid running into the same problem.

0 sats \ 1 reply \ @BitcoinIsTheFuture 14 Mar

Thanks yeah I’ve been monitoring that site . Ordinals have obviously had a big impact on this.

I DCA daily and send to cold storage at a certain amount so I assume I’ll keep consolidating down to one UTXO. Once ore twice a year? Are there issues with just having one UTXO on chain?

17 sats \ 0 replies \ @chairman_pretense 14 Mar

The main issue as I understand it is privacy, and whether or not you want to mix coins from different sources.

Let's say you have some non kyc sats you earned or bought p2p, it would be sensible to keep those utxos separate from your KYC exchange bought stash.

And even if your whole stack is fully KYC from an exchange, the argument for multiple utxos (let's say, low single digits) is that you don't disclose the value of your whole stack to someone who receives a payment from you. Of course, you could improve forward privacy of a single big utxo by using a coinjoin payment - but again, at added cost.

Lots of pros and cons to weigh up!