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Author Topic: UTXO Management Best Practices  (Read 236 times)
NotATether
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November 02, 2023, 09:01:30 AM
 #21

Warning is using mixer means your bitcoin will likely be marked as tainted coins by exchanges and centralized platforms. It can trigger their bots to mark your accounts on their platforms as suspicious and your accounts can break their Terms of Service, AML policy. Your account even can be frozen, terminated by AML violation and you have to think carefully before deciding to use a mixer.

If you don't want to have issue and you don't need too high privacy, you don't actually need to use mixers. Use a wallet software with Coin control feature to control your UTXOs is good enough and no mixer will be needed.

Use both features. The mixer will make your coins private, and coin control will allow you to choose where to spend the mixed outputs best, without inadvertently placing them in transactions that they're not supposed to be in there.

Coin control by itself is not very useful unless you have a specific use case for it, e.g. you have donation addresses that should not be mixed up.

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November 02, 2023, 01:24:16 PM
 #22

UTXO management is a primary task for possessors of hardware  wallets due to the limited size of inner memory allocated by these devices for transaction's data. If transaction has many outputs to sign, then  the size of relevant data may not fit this memory and hardware wallet will fail in attempt to sign it. Thus. it is always better to keep no more than two dozens of UTXO on a single address, consolidating them at the low mempool level.

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