Looking back at the past decade of bitcoin custody, managing UTXOs has largely been thought of as an optional endeavor. After all, it’s safe to say that the majority of people holding bitcoin in self-custody are not yet familiar with what “managing UTXOs” means. Instead, UTXO management has been considered more relevant for intermediate or advanced bitcoin holders, as a form of granular control. It’s been seen as something that’s good to know about, but not necessarily critical to protecting bitcoin savings.

However, as the value of bitcoin rises, this is beginning to change. It’s becoming easier and easier to make UTXO-related mistakes that can damage your bitcoin savings down the road. In this article, we’ll explain what you need to know about this issue, and how to protect yourself.

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