Bitcoins/Litecoins/Virtual Currencies

  • Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!



    Go here and give us your nominations!
    Who's been the biggest Asshat in the last year? Give us your worst ones!
Blazin

Blazin

Creative Title
<Nazi Janitors>
7,281
36,945
Wasting some money as I learn but it's all part of the process, thanks for the help
 
  • 2Like
Reactions: 1 users
MachRed

MachRed

Molten Core Raider
180
447
Blazin said:
yes thank you, definitely. I was trying to figure out yesterday what the optimum size for transferring to my wallet would be. I understand more is better but is $1000 enough for example.

From reading on it, it doesn't matter what size I purchase incrementally when it's on the exchange but when I transfer to cold wallet (is that correct?) that's when it matters because in the future if I transfer it out I'll pay more in fees if it's all broken up.

I like the idea of maybe doing some wallet maintenance and sending to yourself when fees are low.
Click to expand...
Correct, utxo isn't a thing until you transfer to your own wallet, and yea more is generally better but the fees really aren't that bad. If you use Sparrow as Flobee suggested, it makes consolidating very easy, and just keep an eye on The Mempool Open Source Project® when the fees are low. Sparrow lets you set your sat/vB fee you're willing to pay, and if you want somewhat fast transactiosn I'd stick to the high priority fee, and just add .01. So 4.01 sat/vB fee is what 'd use.

1738685708480.png


Flobee said:
Yup, UTXO (unspent transactions) are created when you send to your wallet. so you could buy tiny fractions daily, but only send to cold storage once a month and that will all be consolidated into one UTXO. Regarding size I usually try to keep them above 500k sats (~$500 right now) but there is no consensus on that. Bigger is generally better. So long as you're not creating UTXOs so small that paying the fee to move them is not feasible (1000 sat UTXO when transaction fee ends up that high or bigger for example).

You can use something like Sparrow wallet to help you manage UTXOs, just label them all as they come in so you know date it was removed from Exchange, which exchange etc. A lot of UTXO management is about privacy, so not mixing UTXOs spent on different things in a way that makes it obvious they come from the same person. There is a lot to that but honestly where I think you are right now I wouldn't waste too much effort on that just yet.

Since you're likely just holding... make sure EVERY withdrawal is going to a DIFFERENT address on your wallet and don't worry about it too much outside of that. I can't stress this enough, don't reuse addresses. Any decent wallet software will make creating a new address trivial and its a very good idea. Remember that a "wallet" is really just a private/public key pair that accesses addresses generated by that pair. Its not a wallet in the sense of a single address. Given how Bitcoin was created they didn't really have UX experts involved when they named this stuff so it can be a little misleading until you understand it.
Click to expand...
There were a bunch of videos going around right around 2024 year end regarding tax implications per address. I know best practice concensus was to use a new receive address each time, and maybe if you're getting paid by another party it makes sense to hide your full balance, but to keep the tax stuff simple I don't think its as important when you're just transfering to yourself.
 
  • 2Like
Reactions: 1 users
Flobee

Flobee

Vyemm Raider
2,748
3,196
MachRed said:
Correct, utxo isn't a thing until you transfer to your own wallet, and yea more is generally better but the fees really aren't that bad. If you use Sparrow as Flobee suggested, it makes consolidating very easy, and just keep an eye on The Mempool Open Source Project® when the fees are low. Sparrow lets you set your sat/vB fee you're willing to pay, and if you want somewhat fast transactiosn I'd stick to the high priority fee, and just add .01. So 4.01 sat/vB fee is what 'd use.

View attachment 572252


There were a bunch of videos going around right around 2024 year end regarding tax implications per address. I know best practice concensus was to use a new receive address each time, and maybe if you're getting paid by another party it makes sense to hide your full balance, but to keep the tax stuff simple I don't think its as important when you're just transfering to yourself.
Click to expand...
More or less agree on everything here with a few caveat. Be aware that when you use mempool.space you're attaching the TXID or UTXO that you're searching for to your IP address. I prefer to run mempool on a local machine alongside my node and search the mempool that way. May or may not be something others are willing to do, but its a best practice for privacy.

Due to my situation I'm less concerned about some of these short term tax decisions as I believe they'll get ironed out before too long. As of now though yes it would be easier if you just used a single address. However if you're not trading, using DeFi, or anything like that using a new address for each withdrawal is still, IMO, the right move.

EDIT: Rereading post and yea totally use mempool for transaction fee costs. My mind went a different direction
 
Last edited:
Flobee

Flobee

Vyemm Raider
2,748
3,196
Macro dad discussion of how Lightning network works. They're a little sloppy on the technical details but both are macro guys so a lot of discussion around what it means more broadly while still more or less nailing how it works. Pretty decent introduction if you're still uncertain about what Lightning is, how USDT (Tether) moving over Lighting is important, and what this all means more broadly in regards to Bitcoin as a medium of exchange. They definitely don't touch everything going on but worth a listening if a basic primer on this would be helpful for you.



EDIT: Can skip to 19:00 if you just care about Tether on Lightning discussion
 
Last edited:
Flobee

Flobee

Vyemm Raider
2,748
3,196
Flobee said:
Whoa. Etherscan link checks out, someone blew 500ETH to say that.



Click to expand...

Probably worth clarifying that this simply means someone thought it was worth sending 500 ETH to an all 0's address (burning/destroying ~$1.3m) to send this message. That is verifiably true via the Etherscan link. Not a statement that they're telling the truth.

Interesting conversation to be had about the power of any block chain to essentially destroy wealth to bring attention to a message. Sort of a novel thing I think given its uncensorable, assuming said block chain is actually decentralized I guess.
 
  • 1Like
  • 1Truth!
Reactions: 1 users
Tmac

Tmac

Adventurer
<Aristocrat╭ರ_•́>
10,153
17,446
Flobee said:
Probably worth clarifying that this simply means someone thought it was worth sending 500 ETH to an all 0's address (burning/destroying ~$1.3m) to send this message. That is verifiably true via the Etherscan link. Not a statement that they're telling the truth.

Interesting conversation to be had about the power of any block chain to essentially destroy wealth to bring attention to a message. Sort of a novel thing I think given its uncensorable, assuming said block chain is actually decentralized I guess.
Click to expand...

Marketing 101: light $1,300,000 on fire with a message attached.
 
  • 2Like
Reactions: 1 users
Flobee

Flobee

Vyemm Raider
2,748
3,196
$1.4 Billion in ETH stolen in hack on the Bybit exchange. Looking like the attack vector was via Ledger hardware wallet. Ledger sucks, don't use a Ledger. If you must 💩coin at least use a Trezor. Probably not perfect either but worlds better than Ledger.



 
Last edited:
  • 1Like
Reactions: 1 user
You must log in or register to reply here.