Here's a simple explainer on how UTXOs work, how transaction costs are calculated and what UTXO consolidation is.
This comes after repeated questions from our customers about high transaction fees, because they use a DCA plan weekly via Pocket or Relai and ended up having hundreds of small UTXOs.
Nice article, I loved pocket and Relai until ordinals came into play. Now I'm in the 21bitcoinapp club:) 1000 sats withdrawal flatrate and you can dca daily if not hourly and still have 1 UTXO after withdrawal
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Both are great options! But why in gods name would you DCA daily / hourly lmao
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Because you can 😂
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I love this guide...
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Thanks!
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It's simple than less difficult than most people think, you simply put together whatever the amounts you want to consolidate in one address and make another transfer of all together to it or another one you control in your wallet, at least that's how I understand it, it's like melting small chunks of bitcoins down to one big chunk together. But you want to wait when transaction fees are cheap enough to do that just because the bitcoin network charges per the amount of data you are putting on the timechain the less data the cheaper.
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There will become a time when it is rare for an individual to perform L1 TXs if mass scale adoption happens.
What I worry about is poor information that has been given out for years to DCA and sweep without any future thought behind it. Think global south folks that make a couple bucks a day and may be saving $5-10 bucks a week. If they aren’t staying on top of it, their savings will eventually be dust.
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