let's say one purchased BTC on an exchange. Say $3000 each 3 times so the total value is $9000 and I presume there are 3 UTXO. If one moved that BTC to a wallet, would that effectively consolidate into one new UTXO? assuming $9000 was moved all at once to a wallet?
Correct - when you move that $9000 off exchange at one time you will have a single UTXO in your wallet. However, when you're buying $3000 at a time on the exchange no UTXOs are created because the exchange is not making trades happen on chain. UTXOs are only exist on chain. When trades execute, the exchange is just moving money around in different user accounts within their database if that makes sense.
Hi Rett, when moving Sats from an app like Lollie or Fold into a Coinbase account does each move generate a new UTXO within the Coinbase account? Or are UTXOs only an issue when moving funds from an exchange to cold storage?
Yeah every move is a new UTXO. Coinbase and other exchanges have systems in place for optimally managing UTXOs on their end. When you buy or sell it doesn’t necessarily move any UTXOs around on the exchange side only when you initiate a withdrawal or send a deposit. You can actually investigate your withdrawals and deposits on chain to exchanges it’s kind of interesting how they process withdrawals.
Yes but you’ll pay less fees by just sending to the same wallet (moving to a different public key in the same wallet) once using something like sparrow wallet.
1 is the lowest, I think anything sub 10 is great. It has gotten as high as hundreds for a sustainable period of time which would be great to avoid but you can’t always avoid that.
If I am using the same deposit address to send multiple sats to my wallet. Do those consolidate into 1 utxo since I am using the same wallet address? I understand it’s not recommended to use the same address each time you send yourself sats, just curious. Thank you
No they're still separate UTXOs even if you use the same address. Using the same address is bad just because of privacy. Each person you give that address to will be able to see the cumulative balance
No, each UTXO would have it's own address in a wallet. To be honest this video is not a very clear presentation on UTXO's. I realize he's trying to make a comparison to savings but there are other videos & articles online that give a better explanation of how UTXO's work.
@marty590 You could do it either way. Each timeframe has it's own wallet or each UTXO within a single wallet has a timeframe (a little more complicated but possible). I prefer each timeframe has it's own wallet - that way you can have spendable bitcoin in a lightning / layer 2 wallet or keep bitcoin that you want to trade over the course of a year on an exchange. Then medium term savings gets a hardware wallet and long term gets a multisig. That's just one example you could set it up however you wanted to though. In my example, my
@TOMinPDX - To his point, I explain UTXOs in a little more depth here: ua-cam.com/video/MjNLvhmu4uI/v-deo.html and here: ua-cam.com/video/BPZSbmFj_lI/v-deo.html This video was really meant to answer the question: how big should my UTXOs be. A lot of the guidelines tell you to just never hold less than 1 million sats which I think is a good baseline to start from but doesn't really answer the question. You should really be try to understand how often you'll be moving any of this money and determining size from there.
Hello sir Sorry for an offtopic question. Would you suggest using a dedicated old laptop with Linux OS for stock brokers (IBKR,etc) for security against hacker ? I fear for my stocks getting stolen by hackers Any suggestions?
I don’t think your stocks will be stolen especially in a centralized platform. Make sure you have a strong password (use something like Apple Keychain or 1Password) and two factor authentication on your account with Authy or Google Authenticator. Whatever laptop you use make sure it’s using a recent operating system and taking updates
This video, and the complexities of UTXOs and the ever increasing fees, just tells me that self-custody BTC will never be more than a fringe thing. Sorry, but 99.9% of all humans simply do not have the time to learn all this. I do, but most don't.
$100K/yr isn't remotely close to being "rich". $100K wouldn't even cover bills and living expenses in many parts of the country, much less leave any extra for savings.
![The Best Bitcoin Multisig in 2024 [Unchained vs Casa vs Nunchuk]](http://i.ytimg.com/vi/Ito1YJYhc3g/mqdefault.jpg)
Please do not stop these videos
Eye eye captain 🫡
let's say one purchased BTC on an exchange. Say $3000 each 3 times so the total value is $9000 and I presume there are 3 UTXO. If one moved that BTC to a wallet, would that effectively consolidate into one new UTXO? assuming $9000 was moved all at once to a wallet?
Correct - when you move that $9000 off exchange at one time you will have a single UTXO in your wallet.
However, when you're buying $3000 at a time on the exchange no UTXOs are created because the exchange is not making trades happen on chain. UTXOs are only exist on chain.
When trades execute, the exchange is just moving money around in different user accounts within their database if that makes sense.
Amazing video. Thank you! 🙏🏻
Happy to help Jarol :)
Rhett is a genius and A very helpful person. Thank you, Rhett
I agree 😎😎
Hi Rett, when moving Sats from an app like Lollie or Fold into a Coinbase account does each move generate a new UTXO within the Coinbase account? Or are UTXOs only an issue when moving funds from an exchange to cold storage?
Yeah every move is a new UTXO. Coinbase and other exchanges have systems in place for optimally managing UTXOs on their end.
When you buy or sell it doesn’t necessarily move any UTXOs around on the exchange side only when you initiate a withdrawal or send a deposit.
You can actually investigate your withdrawals and deposits on chain to exchanges it’s kind of interesting how they process withdrawals.
Useful content...thanks
Happy to help ✌️
Can you send everything from a wallet to another then back to the original wallet to consolidate
Yes but you’ll pay less fees by just sending to the same wallet (moving to a different public key in the same wallet) once using something like sparrow wallet.
Optimal Bitcoin UTXO Consolidation
What's considered a low and high transaction fee? What range should we be looking for?
1 is the lowest, I think anything sub 10 is great.
It has gotten as high as hundreds for a sustainable period of time which would be great to avoid but you can’t always avoid that.
Legend
Gang gang
Merci
We back
If I am using the same deposit address to send multiple sats to my wallet. Do those consolidate into 1 utxo since I am using the same wallet address? I understand it’s not recommended to use the same address each time you send yourself sats, just curious. Thank you
No they're still separate UTXOs even if you use the same address. Using the same address is bad just because of privacy. Each person you give that address to will be able to see the cumulative balance
Can you do UTXO management in Blue Wallet?
Yeah they have a coin control feature - I haven’t used it bluewallet.io/features/
Loved your humility 😂😂🎉 kidding :)
Thnx boss 😎
Thanks!
Thanks 🙏 happy to help :)
So each timeframe would have its own wallet with the appropriate amount of UTXOs?
No, each UTXO would have it's own address in a wallet. To be honest this video is not a very clear presentation on UTXO's. I realize he's trying to make a comparison to savings but there are other videos & articles online that give a better explanation of how UTXO's work.
@marty590 You could do it either way. Each timeframe has it's own wallet or each UTXO within a single wallet has a timeframe (a little more complicated but possible).
I prefer each timeframe has it's own wallet - that way you can have spendable bitcoin in a lightning / layer 2 wallet or keep bitcoin that you want to trade over the course of a year on an exchange. Then medium term savings gets a hardware wallet and long term gets a multisig. That's just one example you could set it up however you wanted to though.
In my example, my
@TOMinPDX - To his point, I explain UTXOs in a little more depth here: ua-cam.com/video/MjNLvhmu4uI/v-deo.html and here: ua-cam.com/video/BPZSbmFj_lI/v-deo.html
This video was really meant to answer the question: how big should my UTXOs be.
A lot of the guidelines tell you to just never hold less than 1 million sats which I think is a good baseline to start from but doesn't really answer the question.
You should really be try to understand how often you'll be moving any of this money and determining size from there.
Hello sir
Sorry for an offtopic question.
Would you suggest using a dedicated old laptop with Linux OS for stock brokers (IBKR,etc) for security against hacker ?
I fear for my stocks getting stolen by hackers
Any suggestions?
I don’t think your stocks will be stolen especially in a centralized platform.
Make sure you have a strong password (use something like Apple Keychain or 1Password) and two factor authentication on your account with Authy or Google Authenticator.
Whatever laptop you use make sure it’s using a recent operating system and taking updates
I feel like this is a bug and makes Bitcoin worthless if not fixed
I disagree
Im just buy bitcoin etf . Confused
Yeah good idea
U killed this video
Also cant believe you're a 94' baby hahah
RIP 94 babies this year 🫠
This video, and the complexities of UTXOs and the ever increasing fees, just tells me that self-custody BTC will never be more than a fringe thing. Sorry, but 99.9% of all humans simply do not have the time to learn all this. I do, but most don't.
I agree unfortunately. There need to be major strides in UX for everyone to properly self custody.
Rhett you think everyone is rich. And makes 100k annual
I don’t think everyone makes $100k
$100K/yr isn't remotely close to being "rich". $100K wouldn't even cover bills and living expenses in many parts of the country, much less leave any extra for savings.