How to Consolidate Bitcoin UTXOs
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- čas přidán 17. 07. 2024
- In this video I explain how to consolidate Bitcoin UTXOs using Ledger and Sparrow Wallet. You could follow this same tutorial using a Trezor or a COLDCARD or any other wallet that is compatible with Sparrow Wallet.
UTXO management is very important - if you don’t consolidate your UTXOs, your Bitcoin could become unspendable.
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0:00 UTXOs Explained
1:14 Selecting your UTXOs
2:26 VERIFY YOUR RECEIVE ADDRESS
3:48 Consolidate UTXO
5:39 Confirmed Transaction
Yes . The video about the best consolidation
Goated consolidation guidelines incoming 🔥 🔥 🔥
Excellent !!! You're the man that I go to when I want to learn more about crypto. Thanks for sharing your knowledge.
Happy to help :)
Super helpful! Thanks Rhett!
Happy to help :)
This was super helpful. Thank you!
Yeah good stuff to know - happy to help :)
This was great, cheers!🍻
Happy to help :)
This is pure GOLD ya all
Lfg 😎😎😎
Thank you mate
Happy to help :)
Great video as always
Thanks Mike happy to help :)
Thanks for the tutorial
Happy to help 🫡
Yes; would definitely like to hear your framework for how large utxos should be.
I've heard at least 1mil sats
Good place to start - I will have video out soon
Just what I wanted. How to deal with UTXO’s. about to setup Sparrow Wallet, so this great.
Happy to help - more UTXO videos coming soon :)
your videos helped me so much. I just stopped a weekly DCA that was directly sending to my cold wallet. I'll consolidate the UTXOs asap 😢
Happy to help :)
UTXO problem can be pretty deadly
More more of this. Please.
Will do 🫡 what do you wanna learn?
0:43 I am not familiar with Inscriptions or Ordinals. Can you do a video on what they are and what is their claimed value proposition?
I’ll add it to the video backlog 😎
What is the optimal flow from exchange to cold storage? Is it best to stack a large amount before moving from the exchange? Or is it safer to take money off each week and consolidate like video. What steps should we take from purchase to cold storage that lessen fees?
Yeah best to stack large amount on exchange and then move it all at once. I’ll make a video with guidelines
so how much in fees did you pay? in dollars
Excellent video.
My question is : When i send my bag to another HWW , it will automaticalLy create a UTXO consolidation ?
Yes! Your 1 transaction over to your new hardware wallet will automatically create a new UTXO
Liked and subscribed.👍
Question from the Newb corner, I’m confused by adding Sparrow wallet to the mix. I found the following alternate process online. Any reason in your opinion this alternate way wouldn’t work?
In the ledger app:
1. Enter BTC account you’re hoping to consolidate.
2. Press “receive”.
3. Verify and copy the address generated.
4. Press “send” in the same account.
5. Set the amount to your total BTC balance.
6. Paste the address you copied earlier as the destination.
7. Sign transaction.
That should also work
How do do tjid without sparrow
So did you move all your BTC our Tresor to your Sparrow wallet?or what are we looking at. Can you load from a Arculus wallet to Sparrow … I’m confused right from the start
I’m using a demo wallet here. I’ll have a video out Monday showing you how to load a ledger into sparrow wallet - it’s 99% the same process as a trezor would be.
Not sure about Arculus becuase they don’t have seed phrases afaik- prefer to stay away from devices like that.
Are all UTXOs the same data size, and does the fee scale linearly with the number of UXTOs consolidated at once?
Yeah exacly
Hi, just new to the utxos. I have been purchasing small amounts of euros over a year now. Would like to learn how to set up sparrow and consolidate utxos on ledger. Any help is much appreciated.
I’ll have a video out on using sparrow with ledger soon. Once you’re set up think you should be able to follow this tutorial
Once consolidated, should you include the consolidated utxo as well when doing this exercise for say the next 5 new utxos?
Only if you want a larger balance. Ex you have a 1 BTC UTXO and 10 0.1 BTC UTXOs you could consolidate it all to 2 or you could keep 2 UTXOs of 1 BTC each based on your personal preference
Thank you
Does Ledger Live automatically consolidate UTXO’s when transferring assets from an exchange onto Ledger. I’m finding it so hard to get my head around UTXO’s
Ledger live doesn’t consolidate UTXOs for you.
When you transfer bitcoin from Coinbase to Legder, coinbase’s on chain bitcoin transaction will come to your Ledger as a single UTXO.
You can actually take the transaction id of that withdrawal from ledger live and put it into mempool.space and see that coinbase pays out dozens or hundreds of accounts in the same transaction as your withdrawal and your withdrawal is just a very small part of a bigger withdrawal.
Hope that made sense.
could softnote solve that problem? from tectum, what's ur thoughts?
Not sure what soft note is sorry :/
instead of sending actual btc funds to another public address, they are exchanging private key with the funds in it, password protected... its a neat concept search it up ^^ @@RhettReisman
For those that don't know how to use sparrow wallet with ledger, do you have a video on this or do you have any recommendation for reference material? I take it you don't use ledger live at all?
Yeah I don’t use ledger live. I’ll make a tutorial for sparrow + ledger
Here’s the full tutorial: czcams.com/video/11JkM47Ux_o/video.html
Like many, I use multiple addresses in my wallet so people cant easy see my total BTC. Are UTXO's not basically the same as thing the different wallet addresses? And if I consolidate UTXOs to one wallet unused address, doesn't that cause the same problem of making it easy to see your totals?
You can have many UTXOs in a single wallet address.
Consolidating UTXOs has the issue you’re talking about where you are losing privacy, but you’re also optimizing for high fees - there will always be that trade off.
I cover how you should navigate that tradeoff here: czcams.com/video/H3xVL_l_nAc/video.htmlsi=_rKAdPMRNuZ8crSV
Thanks for the quick reply!@@RhettReisman
If I buy a new hardware wallet and send all of my BTC onto it from my previous hardware wallet, Would I still inherit those UTXO's or would I have one single UTXO from that transaction?
You’ll have a single UTXO if you send over the full balance
@@RhettReisman Thank you! Very much appreciated, and I just subbed!
Can you please make a video for automatic trading using Coinbase Advanced!? 🙏🏼
Yes! Check them out here: czcams.com/video/2nHIDbkVuDc/video.html&pp=gAQB
I have so many utc stored in trezor one. I won't touch it for 10yrs
All my BTC are worthless?
Unspensable?😢
Please reply
If the fees get too high and you have hundreds of UTXOs you might not ever be able to move them
Does this work for block stream jade?
Yeah here’s how you connect jade to sparrow help.blockstream.com/hc/en-us/articles/7559912660761-How-do-I-use-Blockstream-Jade-with-Sparrow
@@RhettReisman thanks man!
Noticing Ledger logo in your Sparrow Wallet. How do you connect Ledger to Sparrow?
Making a video on this soon I’ll post link when it’s live
Here’s a tutorial: czcams.com/video/11JkM47Ux_o/video.html
Questions : 1) those addresses . They appeared …how? On the Ledger I have only one address appearing when I want to receive sats from an exchange or someone. Confused .
2) why not putting immediately those UTXO into whirlpool that is installed with sparrow (I thinkzzz)? 3) once i used that famous address, and everything is batched into 1 utxo , i can then send it cheaply to my Cold Card or whatever…?
Those addresses are every address my ledger can ever generate. By default it will only show you 1 at a time but once you upload the XPub to Sparrow you will see all of them
You could whirlpool them, I've personally never used a mixer.
Yes then you can send cheaply, or you can just send them to a coldcard or wherever instead of sending to another address on the same wallet
@@RhettReisman I don’t know why I didn’t see your answers previously… sorry. But thank you for your time !
Full tutorial linking ledger to sparrow: czcams.com/video/11JkM47Ux_o/video.html
Cant u just send ur utxos to same wallet (the send and receive wallet b the same)?
We’re sending and receiving to the same wallet here we’re just using a new address in the same wallet.
Good for privacy because no one else has used/seen that address
Yes i just realized thank u. Another question, can u verify the correct address with the QR (Jade)?
When i tried to consolidate with Nunchuck, the tx data read ONLY the fees for Total Output
Yeah that’s a good reason to use Sparrow or go into the advanced section if Nunchuk has that info of change address and everything. Never used jade - not sure :/
I have difficulty connecting sparrow to my ledger. It doesn't appear ??????
Hmmm not sure, all I did was plug ledger in to my computer and downloaded sparrow. Going to make a full ledger / sparrow tutorial soon.
Here’s a full tutorial: czcams.com/video/11JkM47Ux_o/video.html
Is it possible that early miners who might still have 5,000 BTC in a single address, would have this sum in a single UTXO? Is this why every year or so we hear of someone who moved $10M and their fee was $3?
Yeah exactly - that's very possible
What is a UTXO?
It’s like a bitcoin dollar bill.
It could be a $5 bill or a $500 bill or a $583637.63 bill
@@RhettReisman what does the acronym stand for?
@@elle-lw1rlUnspent Transaction Output
Many questions…
I’ll answer them all 😎
2:29 that part really lost me.
To preserve your privacy you want to select an address that has never been used. Any address that has been used before will have an arrow next to it. Using an already used address will work but someone else might be able to see your transaction.
Thanks for this vid I've been playing with this on the test net. You go through the signing step to verify the address - why might it not be a valid address? They are generated by the xpub or seed or whatever so why is this step necessary? Should you also varify the next change address? If that was wrong and you sent 0.01btc from a 1 btc UTXO you'd lose the whole lot surely?
Maybe you have a virus that is showing the wrong address on your computer - unlikely but possible. You should technically also verify the change address - again unlikely to be wrong but possible.
Man with a plan❤️🫶
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