Is there a UTXO count that you stay below for later fees, not overwhelming signing devices, and ensuring labels are cleanly labeled? 500? 100? 50? 25? 10? etc...
A recommend amount suggested by Joko on X was 1,000,000 sats minimum per UTXO if you're trying to mitigate against a future higher fee environment making smaller UTXOs an issue, but in general it's really up to you. You can also always consolidate many small UTXOs together (or add one small UTXO to a bigger UTXO) and spend them that way if it's an emergency
Do you just let it grow with no management or grow in UTXO with only labeling? Any long term plans to manage?
Always label. It takes 5 seconds and your future self will thank you for it. It's also very important for your privacy and knowing which UTXOs are KYC and which are non-KYC.
From a cost perspective, the fewer UTXOs you have in your wallet, the better. A transaction with a single UXTO of 1 BTC will be cheaper than another transaction that has ten UTXOs of 0.1 BTC as it has ten inputs vs only one.
Thus, to save yourself fees in the future don't just let it go mental. Once you start getting over 10-20 UTXOs you should probably start thinking about some sort of management strategy.
How are you factoring future spending (if ever) as the value continues to increase if managing your UTXO set given change output could reveal too much? IE: Too tight of consolidation makes for chunky UTXOs that could be problematic using for expenditures far less than the UTXO.
How long is a piece of string? The only way to manage this properly is to know what the BTC/USD price will be which is impossible. Also worst case you could open a number of Lightning channels with a chonker of a UTXO and spend smaller amounts of it from there.
Do you have a preferred mix? 50% chunkier UTXOs and remaining 50% in several smaller?
While having fewer inputs will save you more fees, it can also be terrible for your privacy to just consolidate all of your coins into one big giant UTXO. This shows external observers common ownership and if you spend from that big UTXO in the future, the receiver can look back and see what your entire balance is.
Obviously what size UTXOs you keep will be different for everyone given everyone will have a different sized stash, but it’s considered good practice to have a number of different sized UTXOs in your wallet.
This is similar to how you probably don’t just carry around one $100 bill in your actual real world wallet. You instead probably have a few $5’s, a few $10s, maybe three 20’s, some coins or some sort of mix of big and small denominations in there. The same goes for your Bitcoin Wallet.
Don’t just have a single, massive 1 BTC UXTO, have a few 0.1 BTC, a few 0.05 BTC and maybe a 0.5 BTC UTXO as well. Like everything in life, you need a good balance.
What's considered a large UTXO set for when dealing with signing devices? 50? 100? 500? more? May help some context.
This depends on the HWW you're using and its MCU's processing power. The more powerful it is, the better it can process larger UTXO sets and thus, not crash half way through.
Realistically though, it's more likely that you'll be the breaking point as mentally trying to deal with, organize and maintain a UTXO set of 500+ sounds horrific lol
Make sure you regularly backup your labels! While you should already be backing up your Private Keys, this only helps you to recover your funds, not any labels you might have added over the years to your wallet.
While most good wallets allow you to export or backup your UTXO labels, it’s still done differently depending on what wallet software you’re using. For example, if you’re using Sparrow Wallet and want to transfer all your UTXO labels over to Nunchuk, you can’t. You’d have to manually enter them all in again from scratch.
Thankfully, the developer of Sparrow (Craig Raw) has proposed a new BIP to address just this: Wallet Labels Export Format (BIP-0329). This BIP outlines a standard way that all wallets can adopt in order to ensure there’s full export and import compatibility for coin control labels going forward. Nunchuk has also said they're going to accept it too we believe
Hopefully it gets adopted by all the major wallet makers as coin control is something that will only become more important as the years go by.
Bonus Point: Backing Up