Part 8/13:
UTXOs (Unspent Transaction Outputs) are like small change in Bitcoin—they represent individual chunks of coins.
Handling them efficiently involves:
Reducing the number of UTXOs: Consolidate multiple UTXOs into fewer larger ones during low-fee periods to minimize future transaction fees.
Avoiding excessive UTXOs: Many small UTXOs increase transaction size, raising fees when spending.
Cole provides a helpful analogy: spending five small coins at once involves more data than spending one large coin. Tutorials on UTXO management are available on his YouTube channel, demonstrating how to optimize your wallet for cost-effective transactions.
Building a Secure Bitcoin Storage Setup
Starting with small amounts (e.g., $50/month) offers a manageable entry point: