Bitcoin advice: consolidate your wallet now!

in #bitcoin7 years ago

Now that some bitcoin exchanges has frozen deposits and withdrawals, there is actually quite some free capacity right now. I would advice to exploit it while you can.

Particularly if you have invested in some cloud mining scheme with daily payouts, or if you have been actively using a wallet for a longer time without ever emptying it completely, you probably have a wallet full of small inputs; spending those inputs in a transaction would normally cause the transaction fee to bloat a lot.

To get rid of the "dust", simply take all your funds in your wallet and send it to yourself, with a very low transaction fee. I would advice to enable the RBF option if possible. (Be aware that not all wallets supports "very low transaction fee" nor RBF).

Alternatively, it's always possible to hope the transaction fee will become insignificant again with future protocol upgrades - but be aware that SegWit will not help for rescuing old small UTXOs as the SegWit discount only applies to new UTXOs sent to a segwit address. (I actually believe SegWit will make the situation worse - sell one product at a discount, and it often means the price for the non-discounted products is inflated).

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