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April 23, 2024, 10:05:51 PM |
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When I first started buying bitcoin , the only way I could figure out how to preserve my privacy was by using a bitcoin ATM (no ID required).
I was advised (in videos) that I should 'test' the machine by making a small bitcoin purchase to make sure that it was functioning properly before making my intended larger purchase (buy).
Well, that was bad advice because I learned that every transaction that I made, large or small, generated a UTXO, even the test transactions. I also learned that too many small UTXOs is not a good thing especially when discussing mining fees (network fees).
Also, videos that I have seen that discuss DCA (dollar cost averaging) never mention the fact that every one of your weekly or monthly purchases generates a UTXO. So, imagine someone who has been buying bitcoin once a month for a year or even each week for a year. Do you see how many UTXOs can add up in a wallet? The huge cost to consolidated those UTXOs?
Am I missing something? There seems to be a lot of misinformation out there about purchasing as related to UTXOs because up until 3 weeks ago, I had never heard of a UTXO. I've been buying for two years now.
Comments?
Thanks.
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