25 sats \ 3 replies \ @siggy47 22 Oct 2022 \ on: Daily discussion thread
Can someone help me out regarding dca buys on Swan? I like the idea of automatic buys AND automatic sweeps to my cold wallet. My issue is I don't reuse addresses. Do all these people doing these sweeps just reuse an address?
You can choose "Single Address" or "Multiple Addresses":
How do Bitcoin autowithdrawals work?
https://help.swanbitcoin.com/hc/en-us/articles/1500010403461
Multiple Addresses require that you share your cold storage's xPub with Swan:
How do I connect my wallet's extended public key (xpub/ypub/zpub) to my Swan account?
https://help.swanbitcoin.com/hc/en-us/articles/360060455013-How-do-I-connect-my-wallet-s-extended-public-key-xpub-ypub-zpub-to-my-Swan-account-
Of course, that means Swan can see your balance and know of other transactions to any addresses using that xPub.
To prevent this, with ColdCard, you can set an "account number" (a custom derivation path). You need to keep a record of this "account number" / custom derivation path (e.g., keep it along with your seed backup), otherwise I don't think you'll have success trying to recover without it).
Derivation Paths and Accounts
https://coldcard.com/docs/paths
Also, remember that every "automatic sweep" creates a UTXO on your cold storage. Sure, you can spend those cheaply today. But who knows N years in the future what the fee per UTXO will run.
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Tbh, I have never heard of automatic withdrawals with multiple addresses. I could be wrong but I don't know of any provider that has this feature.
You could exchange the address manually every now ad then. Or an exchange that has withdrawals via lightning? Or move them manually every no now and then via coinjoin? Is that any help?
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Thanks for the response. I agree that it is probably impossible to have automatic transfers to multiple addresses. What I'm really curious about is that Swan publicizes automatic withdrawal to cold storage, which doesn't seem practical. I have also heard influential bitcoiners (I believe Guy Swann, for example) tout this feature
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