More bitcoin UTXOs, more problems: Avoiding high fees and signing failures
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- čas přidán 31. 05. 2024
- In the latest installment from our own Tom Honzik, he explains two common problems that can arise from accumulating too many UTXOs in your bitcoin wallet: signing failures and high transaction fees. We also cover some strategies you can use to resolve these issues and prevent them from occurring in the future.
0:25 UTXO review
1:20 More UTXOs, more problems
1:47 Signing failures due to hardware wallet limitations
2:43 High fees
4:03 Strategies to prevent high UTXO counts
4:19 Controlling deposit frequency
5:01 Performing a strategic UTXO consolidation
More resources:
What is a UTXO? Video: • What is a bitcoin UTXO?
What is a bitcoin UTXO? unchained.com/blog/what-is-a-...
More UTXOs, more problems: unchained.com/blog/too-many-b... - Věda a technologie
Very helpful.
Thank you, Tom. Very helpful explanation.
Happy to help!
Excellent video. Another one from the best Bitcoin company that I have found. You guys seriously deserve to rocket up in customers and success!
Thanks! Great video!
thanks for the video!
Does unchained offer assistance with this for a fee?
A very important video! Question - if I have 25 UTXOs in a wallet totaling to 1 btc, to consolidate do I need to send the whole bitcoin to another address or can I just send a small amount like .1 btc and that will consolidate the large UTXO wallet?
to consolidate them, they need to be sent. so 25 utxos would be selected to be sent in 1 transaction. of course that could be sent to yourself.
Why do some outputs show 0 and some show 1? I notice on my utxo outputs some of mine some say 0 and some say 1
@solar1960 0 is the first output of a transaction and 1 is the second output. Most transactions have 2 outputs, because one of the outputs is change coming back to the sender.
@tomhonzik_unchained so if you were sending all of your funds with no change output would be 0 not 1?
@@solar1960 Yes, the index number is basically randomized among the outputs, but it starts with 0 and goes up from there. That means that if there are 2 outputs, and one is change, the change could be index number 0 or 1. This is good for privacy, to not know for sure which output is change.
If there is only one output with no change, it will always have index number 0.
If you receive bitcoin from an exchange or mining pool that sends bitcoin to many people at once, there can be a lot of outputs, and you can see index numbers that are much higher than 1.
can I consolidate by just sending my max balance on my wallet to the receiving adress of the same wallet to turn it into 1 UTXO
Yes, but having only 1 UTXO wil mean less privacy.
@@gijsknippers6579privacy is compromised since day 1 since wallet providers know the seed phrase associated to your wallet and your delivery address (if the wallet was sent to your place). Privacy in btc is a myth and 95% of retail hodlers live in a fantasy that they have privacy built around their stacks. Having said this, a lot more privacy than having your fiat money in a deposit account