Bitcoin UTXO Consolidation Tutorial
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- čas přidán 13. 09. 2024
- In this tutorial, I show how to navigate the UTXO tab in Sparrow and demonstrate how to consolidate a few smaller bitcoin UTXOs into a larger one using an airgapped Coldcard and mempool.space to check the current fee market.
Sparrow Wallet url:
sparrowwallet....
Coinkite (Coldcard) promo url:
store.coinkite...
Thanks for watching! ✌️🍎
00:01 🧭 UTXO Management Overview
00:43 🔄 UTXO Tab in Sparrow Wallet
02:47 🔄 Example: Consolidating UTXOs
08:21 🔒 Signing the Transaction on Cold Card
10:26 📡 Broadcasting and Confirming the Transaction
11:48 🔍 Verifying Consolidation in Sparrow Wallet
This a handy guide showing how easy it is to consolidate utxo's, thank you.
This is like Light to me. Thank you Wicked so much for letting me to learn 'how to consolidate my dust UTXOs'. 🙏👍👏🎯💯
Beginner question here: what's the main reason behind doing this UTXO consolidation? Isn't it irrelevant as soon as these transactions belong to your public/private keys?
UPDATE: After some research, I found out that this is useful in order to avoid paying extra fees when doing a normal transaction that requires accessing coins from different UTXOs 🤙
Yup, you got it. The more inputs you need in a transaction, the higher the fee will be.
Thanks for doing this Wicked. I’ve been putting off UTXO management for a while and this was the perfect tutorial to get me going.
Thank you very much for this. I was trying it on my own and panicked when it asked me to plug my ColdCard into my laptop for signature. I am just learning about UTXO management and now I understand the point of the SD Card for the ColdCard to maintain the airgap. Very helpful.
What’s the air gap?
@@frankjoy2455you should never plug the cold card or any hardware storage device into any internet enabled device or any other device for that matter.
An Air Gapped hardware wallet is one that has the ability/option to sign a transaction (which is only necessary when sending Bitcoin) without having to plug in the hardware wallet into the computer where your private key can possibly be exposed to hackers. The ColdCard does have the option to use a cable as well but I've always used air gapped. Your private keys should NEVER be exposed to ANY device that could ever be connected to the internet in any way.
Instead, a Partially Signed Transaction file is created by the hot wallet (Sparrow) on your computer which you then copy onto a mini SD card. That SD card is then removed from your computer and inserted into your hardware wallet (ColdCard) where the transaction is actually signed using the private key stored on the ColdCard and a new Fully Signed Transaction file is created. The SD card is then removed from the ColdCard and inserted back into the computer and that NEW file is imported into Sparrow hot wallet where the now fully signed transaction can be sent.
The Blockstreak Jade hardware wallet has this option as well but it uses a built in camera which reads QR codes instead of an SD card. More user friendly (better for non tech savvy people) but overall the Jade has fewer features than ColdCard.
Good Luck!
@@frankjoy2455
Air gap still need more info@@frankjoy2455
Now fees a bit lower, I did some consolidates today. Super simple thanks to this video. Much appreciated mate!
Thanks so much wicked!! Always come back to this for a refresh to clean up my UTXOs
Great video. Very helpful to a newbie. Thank you. Keep them coming.
This is a great tutorial! Thank you very much! However, I am concerned that the average person won't be able to do that. We definitely need more user-friendly tools, otherwise self-custody will always be considered too compicated...
Agreed. We're still in the early days and being self sovereign now requires a great deal of learning. I'm sure it will get easier with time.
Yeah. That's what I was thinking while watching. Only bitcoin ultra-geeks are going to be willing to put up with this level of complexities to actually do it.
Man this is great, I wish I would have found you a little earlier before this current fee regime, haha!
Thanks for the tutorial! Will be on top of utxo management now. Very nice 👍
Very helpful and well done! Thank you!
Thanks so much dude, I really appreciate your vids.
Thank you!! I need to clean up and this is perfect.
Came here right after the Breedlove podcast.
Amazing tutorial. Thank you!
Always helpful! Thanks wicked! Question- should we add password to every wallet/account in sparrow? Is that to preserve the UTXO labels also?
It's an added layer of security so that anyone on your computer can't open that wallet in Sparrow without the password. Doesn't have anything to do with the labels.
@@wickedsmartbitcoin thank you! 🙏
Subscribed. Bravo and thank you for your work
Really helpful and informative video, thank you.
Question: why would you not combine all the UTxO’s into just 1? Is it for the video tutorial, or was there another reason?
Appreciate your help.
Just for demonstration purposes. In some cases you might not want to consolidate all of the UTXOs into one if you don't want the people/companies that sent you that bitcoin to know about the other bitcoin that you own.
Great video! Thank you so much!
thanks for your content Wicked! pleb question: is consolidating utxos worth the risk of losing privacy potentially? should that be a dealbreaker for the common pleb or not something to stress
I think it mostly depends on how small your UTXOs are. If they're super tiny then it's worth it because it's better to have spendable bitcoin in the future that's lost some privacy than private unspendable UTXOs.
Thanks for the great walkthrough, Wicked. Is using QR codes with the camera on my airgapped offline hardware wallet just as safe/acceptable as using the sd card?
@@garo921 yeah, I’d say so. Just make sure to double check the addresses and amounts on your device before signing the txn.
Muy bien explicado. Gracias!
very helpful, thank you
Thank you Wicked. I appreciate your teaching style; calm and slow. I've been listening to you for a few years now on Cafe Bitcoin.
Question: What are the parameters that you prefer for UTXO management? Something like a min of .0014 ($50+/-) to .014 ($500+/-)?
I usually try to keep my UTXOs above 1m sats each with no upper limit.
How many UTXO's would you recommend for the long run? like 10 with 20million sats or would like 3 with 69mil?
awesome video thanks man. was dreading this day but you made learning utxo consolidation such a breeze!
I think either option should be good. I just try to keep mine above 1m sats each so anything larger than that should be safe from future high fee environments.
Great content @wicked. I would love to hear your thoughts on consolidation of UTXO outputs from Whirlpool mixes. What would be your best practice advice for consolidation of the mixed UTXOs and for getting one step removed from the mix?
I think post mix you typically don’t want to consolidate them or else you could break the privacy you gained from the mix.
@@wickedsmartbitcointhis is just the answer I was looking for and about to ask. But boy, is whirlpool expensive. 175000 sats for a 5.4 m sats transaction. This is really testing your commitment to being private. I’m washing my sats from the exchange before transferring to my lightning node.
THANK YOU, WICKED!
Hey wicked, this is an awesome video and just in time. I'm going to consolidate UTXOs from my Trezor to a Coldcard and I have a good idea of my desired size, but wondering if you also consider the source of the input UTXO ... should I worry about mixing KYC UTXOs from different exchanges? Thanks again, man!
Yeah, this is a good question. It comes down to how much you care about whether those exchanges know that you're the owner of all of that bitcoin. Whenever you consolidate UTXOs, it's always best practice to assume whoever sent you those original UTXOs is watching and now knows you own all that BTC. When it comes to KYC exchanges, some people are less worried about it than others. Personally, I still try to keep mine separate.
Thanks much! It won't be too much trouble to keep them separate. Your videos are super helpful and I am also learning a lot from you and the gang on Cafe Bitcoin.
wiiiiicked thanks. hoping for some christmas consolidation
Very useful guide Wicked. Do you normally delete the .json and .psbt files from you computer when you are done sending the transaction or shouldn't you do that. Thanks!
Yup, I normally delete them after broadcasting them.
Why and how would you do this? What do thise files do?@@wickedsmartbitcoin
I'm a Mac person also Wicked. Can a node be set up on my Mac Mini - assuming there is enough Ram and Space? Is it a bad idea?
RAM shouldn't be an issue. If you want to run a full archival node, you'll need a 1TB+ SSD.
Top G
Loved it! What’s the ColdCard latched to? Is it just a battery/power source? Also, do you have a video demonstrating the process to move BTC from a Ledger to a CC? Thanks!
Yeah, it's a 3D printed battery case I got from beansbulletsbitcoin.com/ that holds a 9V battery and COLDPOWER Adapter from Coinkite. And, yes, I was thinking of making that tutorial at some point soon!
@@wickedsmartbitcoin I just received my ColdCard in the mail. Gonna learn how to use it, then fire up Sparrow, move items from Ledger, then consolidate any renegade UTXOs… 🧡
@@wickedsmartbitcoin So all I need to pick up are a 9V battery, a micro SD card and a COLDPOWER adapter?
@@etiennedaunay2150 Yup, I think that should do it.
Thanks, Wicked! 😎🧡✅😉
Awesome video brother!
Thanks, good tutorial. Do I need to use the MicroSD? can I just do it on the wallet?
If you don’t have a micro sd card and don’t care about keeping your device airgapped, you can just plug it into your computer. Some people get paranoid about plugging their devices via usb cables into internet connected computers though since there’s a small risk of attack there.
nice video, wicked!
appreciate the work you put into this.
is it possible to consolidate utxos using different wallets? electrum/trezor/jade/etc
or is sparrow the one that makes it the simplest?
I think Sparrow is the simplest to use for UTXO management although I've heard it's also possible in Trezor Suite and the BitBox app. I'd assume it's also possible in Specter and Electrum as well but I haven't tried these ones out myself yet.
@@wickedsmartbitcoin cool, thanks for info. ill check it out in Trezor Suite and get back to you
I JUST consolidate mine thanks
Does having a high amount(say 1 million sats in each address/utxo of the same key/wallet) mitigate the high fee problem? In other words do you see any future where having a million sats in a utxo is too low and would leave them unspendable?
Yeah, I think its reasonable to assume that fees in the future might be in the 10,000s of sats per transaction (maybe in the 100,000s during periods with lots of network congestion) so 1m sat UTXOs will be fine as long as you’re willing to wait for the network congestion to die down.
aye wicked what ssd card reader is that? which ones do you recommend?
also what type of ssd cards do you recommend?
It's just a standard Anker adapter. Any SSD cards should do as long as its under 32GB (Coldcards don't work with larger ones).
Best to ever doit ❤
Wow. So helpful. Thank you!
I understand that you create the transaction with an only watch wallet and sign it offline?
Correct.
Super helpful video, ty. Is there a particular size of UTXO that you'd be looking to consolidate? Anything under a certain amount for instance? And then further to that, would it ever make sense to consolidate all the UTXOs in your wallet? For example, in a cold storage setup that you've added to with small DCA amounts over a few years?
Yeah, great questions. I generally try to keep my UTXOs above 1m sats, typically consolidating ones that are lower. I try not to consolidate non-kyc with kyc UTXOs though! The only reason you might not want to consolidate everything together is if you wouldn't want everyone who's paid you to know that you just consolidated that amount they had payed you with the rest of your stack. You would lose that privacy you gained originally from using different addresses.
@@wickedsmartbitcoin Ty, makes perfect sense. Really appreciate you taking time to answer my question.
Hey wicked, after following your video step by step in having issues. Once I confirm my transaction is saved on my SD card. I plug it into the coldcard and hit ready to sign, it hits me with a prompt to insert an SD card with a pbst file. It's like the coldcard doesn't acknowledge the transaction on the SD card. Am I missing a step with the coldcard setup?
If the Coldcard isn't recognizing the transaction then what might be happening is it was made for a different wallet. Check the Master fingerprint on Sparrow and the Wallet Identity on Coldcard and make sure they match.
I tried to do the utxo consolidation again today using my Sparrow Wallet on my Cold Card Mk-4. I ultimately was unsuccessful Everything works fine until I go to load the transaction back onto Sparrow. The file created from signing on my Cold Card only shows as "partially signed" and it also creates two different files on my SD Card. When I upload what I think is the correct file it doesn't do anything and there is no option to "broadcast transaction". not sure what I am doing wrong as I have the exact same set up you're using and your instructions were very clear.
Make sure you’re connected to a node (click the little toggle in the bottom right corner of the screen).
I did that. I think I was just clicking on the wrong file.that was downloaded from the coldcard to the SD card. For some reason it's giving me three different files. It'll give me two different files labeled as partially signed and one file labeled as Bitcoin transaction. Seems to have worked on my test@@wickedsmartbitcoin
Nice! Thanks Wicked
If I whirlpool and it spits out a bunch of UXO's, will I do the whirlpool if I combine them this way
Yes, that’d completely undo any privacy gained with the whirlpool.
So is a UTXO just a single transaction? Trying to understand it better thanks!
It’s an unspent output from a transaction. A typical transaction will just make one of them though (unless it’s got a bunch batched together like how exchanges do when a bunch of users withdraw their bitcoin at the same time).
Great video! just a couple of comments; why does the txt file has the Bluewallet logo? and don't you think that consolidating is a bad privacy practice? Cheers
I think it’s because it’s the default application that my Mac uses for that file type. And, yeah, consolidating UTXOs links their histories together so you lose privacy when doing this. This is why I tend to only consolidate UTXOs from similar sources. Never consolidate your kyc and no-kyc UTXOs!
what is the ultimate reason for consolidation is it just to save a few fiat dollars? in the event that you are selling your btc for us dollars which is almost always not a good idea unless in case of emergency
It's to reduce the amount of fees you'll have to pay in the future. UTXO consolidation is especially important for those who have a bunch of tiny UTXOs which could become unspendable if fees got too high.
I have a Trezor one. Can I connect it with Sparrow wallet to do this? I don't run my own node. I only use Trezor suite because I'm afraid to make a mistake running my own node or using wallets like Exodus.
Yes, you can connect your Trezor to Sparrow Wallet and you can connect it to a trusted node, there are a few available by default such as Blockstreams node. armantheparman.com/trezor/
@@wickedsmartbitcoin Can we assume this is also true for a Ledger Nano?
@@etiennedaunay2150 Yeah, Sparrow can connect to the Ledger Nano as well.
Good shit man. thanks
Hey Wicked...Are you using your own private server with Sparrow wallet? If so, what equipment/ company did you use to set up your server? Thanks!
No, for my personal setup I'm just running Bitcoin Core on the same computer. For these tutorials, I usually connect to one of the public nodes though (which is why the toggle in the bottom right corner is yellow).
Thank you.
Great vid, as always Wicked. I get the minimum you suggest around 1m sats but Is there also a certain maximum amount you would typically withdraw from exchanges at a time? Ie. If one has been mistakenly stacking and hasn’t withdrawn to cold storage yet?
At this point, I’m thinking the bigger the better. I don’t think larger UTXOs will be problematic for things like privacy once better 2nd layers are developed (e.g. Fedimint or Ark).
@@wickedsmartbitcoin sounds good man, thank you!!
No Shitcoin Inside 👊
I use two wallets and ping consolidation transactions between them to consolidate UTXO’s. I also withdraw my DCA into one wallet and then send as one transaction to my main wallet at desired intervals. Is this method valid for managing UTXO’s?
Yeah, this method works great.
I'm a bit confused in regard of the signing. I used a ColdCard to create a wallet air-gapped. When I then used sparrow I got some password to login. I never get asked to sign it with the ColdCard when doing a transaction but I can simply broadcast it. Did I screw up at some point? Is my storage less safe?
Sounds like you may have set up a hot wallet on Sparrow and not an airgapped cold wallet (maybe you entered your seed phrase directly into Sparrow...which was a mistake). You might want to set up a new seed phrase on your ColdCard and move your funds over to that one and this time import your xpub...and don't enter your seed phrase and any online connected device!
I found out where my mistake is. I moved away from a Ledger Nano X and directly used that seed in Sparrow. That's why it does not need any other signing. The receiver wallet is the air gapped ColdCard and if I move it out from there I need the device to sign.@@wickedsmartbitcoin
With your UTXO research, it would be interesting to find pattern in how many UTXO are DCA type UTXO.
For example: on a weekly basis you acquire 100usd worth of BTC and put it in cold storage. This should be a pattern that can be analysed on-chain.
Forecast it to 12month from now and we could estimate how many BTC are about to leave CEX and enter the illiquid supply.
great vid.
I have so many questions now, jeez!
Feel free to ask them!
Good stuff!
Great video wicked :)
Hello how would I do this with Jade blockstream hardware wallet
非常有用的讲解
Thanks for the video brother, what would be the minimum amount of sats to creat a utxo consolidation..? You did one for 500,000 sats is that the minimum youd do..? If my purchases of sats via exchanges are bigger than that would you still reccomend consolidating in bigger utxo? Thanks again!
I think 500k sat UTXOs will probably be alright. I honestly try to keep most of mine above 1m sats though, just in case fees get crazier in the future.
This is heartbreaking…. Gives me reasons to get out of BTC as this is beyond complicated!
There’s always the ETF or leaving your coins on the exchange if you can’t handle using bitcoin yourself. Being your own bank ain’t easy.
@@wickedsmartbitcoin unfortunately I am using a Phantom wallet and it does not appear to access UTXOs at all. Now I have BTC stuck in there and can’t do anything with it! Can’t send or sell or anything. When I try to send it says that only about 0.1% of my balance is available to send.
Probs stupid questions, but you delete the .PSBT and .json files after you are done broadcasting the transaction to the network right? Thanks!
Yeah, I typically delete them off the SD card once finished.
@@wickedsmartbitcoin thank you! Is there anything else I should keep in mind while using an SD card for air-gapped? For some reason I’m sketched out that I’ll do something wrong even after a lot of research.
You can always practice using Testnet.@@mitchmatch91
@@wickedsmartbitcoin Whats your thoughts about air gapped through camera / QR?
@@jesperr.b4026 As long as you're confirming all of the details on your signing device's screen, then QRs are a good way to keep your private key airgapped.
Sorry if this was already mentioned in the comments. Can you use the coldcard as the SD card reader (if you use the USB port) instead of having a separate SD card reader? Thanks in advance.
Yes, you can just plug your coldcard in directly via usb but then it won’t be air gapped. There are some security risks if you do this and your computer has some sort of malware that could make its way onto your coldcard. It’s much less likely such an attack could be performed over the sd card.
Dear friend, when I insert the SD card into the Coldcard it doesn't show the psbt file. But it is there. I can see it on the computer, with the correct ending and a sparrow icon. May Could you help me find out why this is happening?
If you’re using a passphrase, make sure to enter that on the device first otherwise it won’t recognize the psbt file as being valid (one that it can actually sign).
@@wickedsmartbitcoin My Coldcard has no pass phrase. But I was able to save a valid file by my Bitcoin Core node. In this way, Coldcard recognized the psbt file. Thank you very much for your attention.
@@wickedsmartbitcoin Sorry to bother you, buddy. But my MK4 hasn't recognized the .psbt file generated by Sparrow when I try to consolidate it. I've tried talking to Coinkite, but I haven't heard back yet. I believe you have a lot of knowledge and may be able to help me. Thank you.
I connected my ledger nano s with Sparrow sucessfully and it is all linked, however Sparrow isn't showing any transactions nor UTXO on the sparrow window. Does anybody why is this?
Did you use the correct script type when importing the wallet?
what is difference between signed and final .pbst?
That's a good question...I've wondered the same thing since both of them seem to work when uploading the txn to Sparrow before broadcasting it.
Is it wise to consolidate my whole balance? The totality of my BTC?
I wouldn't unless you understand the risks of doing so. When you consolidate everything together, you're losing privacy.
x.com/w_s_bitcoin/status/1737076372814565386?s=20
I have the blockstream jade and does not seem to work exactly like this.
What issues are you running into?
@@wickedsmartbitcoin I imported my blockstream jade wallet into sparrow but no transactions show up. Can't see the UTXO's
TY
Do you have a Jade tutorial for this?
Not yet...that's on the todo list.
Hey, is there an easy way to verify if the "consolidation" adress im sending the sats to is actualy mine? Sounds a bit paranoid but couldnt there be the possibility that a maleware on my pc or a sparrow troyaner can show me all these "receive" adresses as my own, but when im sending my coins to it, its actually a adress from a 3rd party? I think of a second open source application, where i could paste in my pubkey and the adress and it would verify that its actually my adress, wouldnt that make it more secure than to just trust the sparrow application?
Yeah, this is a legitimate concern. You can check the receive address on your coldcard.
@@wickedsmartbitcoin What do you mean exactly? When im signing the transaction with my hardware wallet, i can approve that its the same adress as displayed in the sparrow app, but how can i make sure that its actualy mine?
@@LappenkopfLP Go into the address explorer section in your Coldcard and double check that that address is actually in there. coldcard.com/docs/address-explorer
@@wickedsmartbitcoin Awsome, thank you for the fast reply and especially this video
Control key on windows CTRL
I'm new, but I am using ledger nano S. Can you show how to do uxto for ledger. Is it difficult to move bitcoin from ledger to a more secure cold storage cold card or something user friendly that is suitableto uxtos. Any advice much appreciated.
czcams.com/video/tlQGO-Na7Io/video.htmlsi=AK_0pSG1QGARlRol
Question: I have 2/3 multisig with Unchained. They have one key, I have two. Will I need to send my Bitcoin to my Colcard (single sig), then consolidate the UTXOs and send them back to myself, then back to multisig. That would be three transactions instead of one.
You should be able to consolidate from your multisig to your multisig in the same way demonstrated here. Select the UTXOs you wish to consolidate and then send them to your own address. I guess the question is whether you’ve already got your multisig set up in Sparrow…
@@wickedsmartbitcoin Wow! Timely response! No, I do not have it set up on Sparrow. It is through Unchained. I don't know if I can do it on Sparrow since it is through. I may reach out to Unchained and ask them about that. Thanks!
How do I do this with a ledger wallet
You can follow all of the same steps if you setup your Ledger with Sparrow wallet. Ledger Live is very limited and not the greatest wallet software.
@@wickedsmartbitcoin figured it out since I commented. Thanks for then help!!! I wish I could comment on your Twitter without being verified:((
Hi - I have never consolidated my utxo’s on sparrow and show 31. Can I select them all and do it in one transaction?
It depends what you're trying to do with your bitcoin. If you're just planning on HODLing it long term and want to avoid spending a lot of fees in the future when they rise due to increased adoption, then you might consider doing what you've said (consolidating everything into one or two larger UTXOs). Just make sure you don't ever consolidate non-kyc UTXOs (e.g. payments you've received privately) with kyc UTXOs (e.g. withdrawals from exchanges).
Hi and thanks. yes exactly, i just want to hodl and reduce fees.
Ok that is a problem for me then. I have never labelled a single transaction on sparrow and used muun and shakepay and bitbuy etc to send to my sparrow so I don't know how to separate kyc from non kyc transaction. :( @@wickedsmartbitcoin
What happens to an unconfirmed transaction that is no longer found on mempool but also cannot find anything returned to me within my sparrow wallet? I'd like to speed up this transaction but I cannot find it in Sparrow to do so anymore. TIA!!
Do you still have the txid and can see it on mempool.space? It may have been dropped from the mempool of the node you're currently connected to.
I have the txid , waited 2 weeks to confirm as the sat/vb was very close. After about 14 days searching the txid on mempool now says transaction not found. However, I do not see it returned to my wallet either.
When I search the txid on other sites it’s still showing unconfirmed
How large should a UTXO be ? Is 300k sats ok? or should i Consolidate it with other to a larger one =)
I'd go larger if possible. Shoot for a minimum of 1m sats per UTXO.
Question I’ve been trying to figure out… over time fees will likely sky rocket and only larger players will be moving bitcoin on the base layer. The average pleb will be using LN. But how will we move some BTC to the LN if we only want say $500 in a LN wallet but the fee to move it there is $500?
Average plebs won’t have any on chain bitcoin in this potential future, they’ll all only have sats on 2nd layers. If you’ve got large enough UTXOs in the future to be able to afford higher transaction fees, then you will no longer be an “average pleb” once your bitcoin is worth significantly more…whether you like it or not, you’ll be a wealthy elite at that point and a $500 fee will be chump change to you.
@@wickedsmartbitcoin that makes sense. Thanks for all your great content!
In the future I'm guessing most people will probably buy sats straight to their lightning wallet and avoid base layer interaction completely.
Thanks for this explanation Wicked! I have a question about the signing. I've only been using a Trezor and stacking only, so I've only sent sats to it. I've never signed anything, am I making a mistake? I want to switch to cold card but I want to make sure I do everything correctly without losing any sats and I'd like to consolidate the UTXOs. Should I be signing each time I receive sats to my address? Or signing sends only? I am Confusion.
You’re doing everything correctly. Signing is only required when sending sats.
@@wickedsmartbitcoin thanks man love your content. I'll be getting my cold card at the end of the month.
Hey wicked,
When you send BTC to the same address twice like in this video, will it always separate into different UTXOs? I'm a bit confused on this part. Does it not combine them into one UTXO since it's the same address?
I've tried googling and can't find a good answer. I've always sent from an exchange to the same address. Maybe that needs to change with the new Cold card I just bought.
Thank you!
Yeah, it will create a new UTXO every time you receive any bitcoin there. If you want to consolidate those UTXOs into one, you’d have to send the entire balance to a new address (or the same one if you want). Using a new address every time you receive bitcoin is the norm these days.
@@wickedsmartbitcoin that's crazy. Shows how little I understood about receiving. Thought I was consolidating by sending it to the same address... It's wild that it separates them all with no real identifying markers. Thank you for the reply!
In a different tutorial I have seen that they broadcast the -final and not the -signed file. What's the difference?
Good question...I'm not sure...but they both seem to work! haha
Can you do this with Tangem wallet ?
can i consolidate my UTXOs more than once? consolidate newer UTXOs with an older address i sent to myself 10 months ago?
Yes, you can.
@@wickedsmartbitcoin thanks & cheers. going to try since the current miner fees are under 20 sats
Do think there is a maximum number of 1 million sat UTXOs that you should have?
I think the better question is whether there should be a maximum number of UTXOs in general. One thing about having a ton of them is if you ever have to swipe all of your funds because your wallet gets compromised then it'll cost a lot more to move all of them. That'd be my only concern.
Thanks for video, so do i need to just consolidate all my UTXO into one large UTXO? My btc is all kyc from exchange withdrawal
The only argument against doing that is if you plan to spend that bitcoin any time soon (before there are hopefully better options for spending privately on 2nd layers in a few years). Spending from a single UTXO will show whoever you're sending sats to that you've got a big ass UTXO so that could be problematic if you don't want them to know how much you've got.
@@wickedsmartbitcoin Could you just send whatever you want to spend to a intermediate wallet that you just created and then send all of it to the party that you are spending it with. They would only see the one smaller UTXO that way correct?
They might go back a hop and then assume you were in control of the funds coming from that one.@@overbuiltlimited
@@wickedsmartbitcoin Okay thought that might be the case. Looks like a coin join/mixer might be a solution. Scary territory though. I've heard some horror stories with those. Thanks for the reply. I know this is an older video.
Hi, i have a question about the consolidation, if my all UXTOs are now on other wallet ( just like unisat ), so if i wanna to consolidate all of my UTXOs, i need to send it from unisat wallet to sparrow wallet first?
But once i need to transfer it out( from unisat wallet ), the higher transaction fees produce....
If the current wallet i am using not providing such consolidation function, how can be work done...
You could just load your seed phrase onto Sparrow wallet and then you wouldn't have to create a new wallet to send everything to. But that's if you trust the seed phrase that unisat made for you. Eventually you might want to consider getting yourself an offline signing device to manage your seed phrase.
Does it matter what UTXOs you consolidate together?
If you care about preserving privacy, yes. If not, then no. When you consolidate UTXOs together you’re linking their ownership together for anyone who may be watching (e.g. the exchange or person who sent you them).
great thank you.@@wickedsmartbitcoin
another question. My cold card has previous files that I have already signed still in the ready to sign section? Do these files stay there for good? Should I delete these files off my micro SD card once signed?
@@kyripyou can delete them or keep them, doesn’t matter either way. maybe make an “old” folder and move them into that if you want to keep them.
Why not just sent it all to an exchange, sell it and buy back in one chuck periodically? Isn’t that cheaper, faster and low risk since you’re just in and out?
If you’re in the US this would trigger a taxable event. And after the exchange fees, doing this would cost way more than simply consolidating everything on your own.
@@wickedsmartbitcoin That's a good point I hadn't considered the tax implications.
why there is need to consolidation ?
So that you don't have any tiny UTXOs that become unspendable in a future with persistently high on chain fees.
@@wickedsmartbitcoin great information. Can you make Video with Jade wallet how to do consolidation..
I have a blockstream jade hw wallet. Could I just send my entire balance to a hot wallet like blue wallet, then back to my jade? Thanks
You can skip that middle step and just send it directly from your Jade to your Jade. You'll save on fees doing that way too.
How would you spilt a large utxo into many as a batches transaction to avoid paying high fees
Why are you trying to split a UTXO up? The fees depend on the number of inputs and outputs in your transaction so there's no way to make the fees smaller if you've got a bunch of outputs.