UTXO consolidation strategies? \ stacker news ~bitcoin

2924 sats \ 42 comments \ @grayruby 16 Jul bitcoin_beginners

Saw this good reminder tweet from Wicked on Twitter/X.

He suggests minimum UTXO size for single sig of 1M sats and 2M sats for multi sig.

I haven’t consolidated in awhile and have a lot of sub 1M sat utxo’s from DCAing. What are stackers best strategies. Previously I was just generating a new receiving address and sending all the sats in a given wallet to it. Anyone have a better method?

Sats for all, GR

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1260 sats \ 3 replies \ @Bell_curve 16 Jul

Example using Liquid, Blockstream Jade, side swap and cash app

113 sats \ 1 reply \ @SpaceHodler 16 Jul

I do the same, but instead of SideSwap for LN -> Liquid, I use Bitfinex, which costs zero. So the overall cost is 0.1% for the peg-out, plus one on-chain fee and one Liquid tx fee per peg-out.

120 sats \ 0 replies \ @Bell_curve 16 Jul

Good call

Bitfinex excludes USA

13 sats \ 0 replies \ @grayruby OP 16 Jul

Another good suggestion.

1168 sats \ 2 replies \ @TNStacker 16 Jul

How to consolidate UTXOs to open LN channels

https://darthcoin.substack.com/p/how-to-consolidate-utxos-to-open

81 sats \ 0 replies \ @kepford 16 Jul

Yep, another good resource.

34 sats \ 0 replies \ @grayruby OP 16 Jul

Another good resource. Thanks

75 sats \ 1 reply \ @IamSINGLE 17 Jul

Everything about UTXO Consolidation

0 sats \ 0 replies \ @grayruby OP 17 Jul

Thanks

112 sats \ 0 replies \ @kepford 16 Jul

Jameson Lopp has his Economically Unspendable Bitcoin UTXO Calculator tool which is helpful.

1018 sats \ 2 replies \ @OT 16 Jul

I used to think this was a good idea. Now I understand that consolidating UTXO'S is terrible for privacy.

If you think fees will come back to around where they are now in the next 5-10 years then I'd just leave them. If you don't you can swap them for lightning into your larger LN channel, then loop out larger UTXO'S. You could also swap for liquid or an ecash to get those smaller UTXO'S into better places for spending.

13 sats \ 1 reply \ @grayruby OP 16 Jul

Yes the privacy element is definitely something to consider. Good suggestions. Thanks.

151 sats \ 0 replies \ @Bell_curve 16 Jul

Privacy >>> consolidation UTXO

139 sats \ 1 reply \ @k00b 16 Jul

Stackers love UTXO prep: #610849/related

65 sats \ 0 replies \ @grayruby OP 16 Jul

They like it because it feels dangerous to do it and also not to do it. Living on the edge.

1055 sats \ 4 replies \ @kepford 16 Jul

I don't have an answer other than it depends.

I don't recall where but it seems like @DarthCoin had some opinions with more rational than "Wicked" provided on Twitter. I don't like advice without explanation.

I believe Darth's advice was UTOXs of different sizes with a minimum of 100k.

Consolidating UTXOs has privacy consequences so that should always be considered. But also in high fee environments small UTXO's could be unspendable. But also a huge UTXO used to make many transactions in the future will be bright on the blockchain.

The sizes has been my question for a while. If most bitcoiners believe the purchasing of bitcoin will continue to increase over time (as it has up to this point). Then why 1 million as the minimum?

I would guess the main reason is that this is a good minimum for a lightning channel. But other than that I don't see why 100k sats isn't big enough. That said, I would think it would depend on your spending habits and privacy concerns.

When you think about high fee environment future Lightning or another L2 is gonna be where you do your spending so the 100k vs 1m sat decision may not be the most important.

113 sats \ 1 reply \ @DarthCoin 17 Jul

As I pointed in this guide - think lie a bank, not only consolidating by 100k/UTXO but also on different levels and with different wallets. It doesn't make sense to have all your stash in just one wallet and from there operate everywhere.

Another guide that should be taken in consideration for those that are starting now stacking is this one: https://darth-coin.github.io/beginner/getting-started-stack-sats-en.html

20 sats \ 0 replies \ @Bell_curve 17 Jul

2 excellent charts

33 sats \ 0 replies \ @kepford 16 Jul

I think I'm misremembering Darth's recommendation. Don't quote me :)

13 sats \ 0 replies \ @grayruby OP 16 Jul

Great response. The privacy implications are something to consider as well beyond what might not be viable in a future high environment.

163 sats \ 2 replies \ @Undisciplined 16 Jul

Nice try, fed!

65 sats \ 1 reply \ @grayruby OP 16 Jul

I will mark you down as undecided.

84 sats \ 0 replies \ @Undisciplined 16 Jul

You’re not often open to it. I had to seize the opportunity.

103 sats \ 3 replies \ @kepford 16 Jul

Another good resource from @ODELL

Bitcoin Transaction Fees and UTXO Management

255 sats \ 2 replies \ @Bell_curve 16 Jul

68 sats \ 0 replies \ @grayruby OP 16 Jul

This is a good reference chart.

63 sats \ 0 replies \ @kepford 16 Jul

Thanks, was gonna do that.

This is a good table IMO.

83 sats \ 2 replies \ @kepford 16 Jul

Honestly, this whole low fee environment should humble all of us who never thought we would see sub 10 sat/vb times again. Pretty wild. Make hey while the fees are low I guess.

105 sats \ 1 reply \ @WeAreAllSatoshi 16 Jul

This applies to both users of the network, and miners supporting the network! It’s very interesting to watch the fee rate ebb and flow

50 sats \ 0 replies \ @kepford 16 Jul

Yeah, it is not a great time to be a miner right now...

Brutal.

63 sats \ 1 reply \ @BitcoinIsTheFuture 17 Jul

Here is a good list : #477157

13 sats \ 0 replies \ @grayruby OP 17 Jul

Thanks

63 sats \ 0 replies \ @SatsMate 17 Jul

I keep mine pretty simple, no less than 3M sats, and no more than 5M sats. Maybe I'm off base here but it is working well, and from my view it will work well in a higher fee environment.

63 sats \ 0 replies \ @bzzzt 16 Jul

robosats swap. send the on chain btc and receive sats to a lightning channel.

61 sats \ 1 reply \ @Coinsreporter 17 Jul

His is the only thing I've gone through for UTXO Consolidation strategies. May be it helps...

11 sats \ 0 replies \ @grayruby OP 17 Jul

Thanks for sharing

50 sats \ 3 replies \ @Bell_curve 16 Jul

One or two million is a good rule of thumb

Addendum: Another strategy is to use a sidechain like Liquid. Get off the blockchain then get on it later via hardware wallet and or multi signature

33 sats \ 1 reply \ @SpaceHodler 16 Jul

On Liquid you can also have it in a hardware wallet. At least the Blockstream Jade, not sure if other ones are supported.

50 sats \ 0 replies \ @Bell_curve 16 Jul

Good call

Jade is the easiest hardware wallet for Liquid. I think there is one other but I can’t remember.