What is UTXO? The core of Bitcoin privacy and low fees | By henry windle | May 2025
You will be wondering if this is a problem for you Right nowAnd honestly, it depends on your situation. The fact is that it affects everyoneYou must know. Nevertheless, if you have received a large amount of UTXO (for example, if you buy a small amount of bitcoin regularly and consume a lot of bitcoin), you should consider taking action to manage UTXOS faster. It is recommended to be careful because Bitcoin you own today is much more valuable in the future.
Now we know that it is essential to manage these UTXOs, so it’s not good to be able to configure the organization? yes!
Introduce the concept of UTXO integration: The process of combining small utxos with one larger UTXO Sending a deal. This helps to reduce fees and simplify future transactions.
In general, I want to integrate UTXOS from the same source (e.g. separating business payments from personal savings). This allows you to maintain your personal information by efficiently managing UTXOS and saving future fees.
*It is usually not recommended to combine all funds into a single utxo.*
How do you do this?
First, wait until the bitcoin fee is significantly lower. Then select UTXOS to combine and send it directly to create a new single utxo. This can be easily done in Trezor Suite.
Therefore, you can actually selectively integrate UTXOS, maintain personal information, and avoid higher fees.
important: If you are not careful, there is a risk of protection of personal information in UTXO integration. The future fee will be reduced, but if you merge the UTXO connected to another address, you can disclose the total wallet balance of the blockchain.
Billy purchases Bitcoin Monthly and is sent to different addresses each time.
He also receives regular Bitcoin payment for freelance work for the same wallet.
Billy’s wallet contains unnatural UTXO, so the entire wallet balance is maintained individuals, but all of these UTXOSs increase transaction fees. So Billy sends Bitcoin to his wallet to create a new single UTXO and decide to integrate Bitcoin.
Billy combines and integrates all of these UTXOs at once, revealing the entire Bitcoin Wallet balance to the blockchain. If he purchased Bitcoin and who paid him in BTC, he can now see his total wallet balance!
*This is irreversible*
If you do this, you cannot reverse it. If the stake is publicly known, it can lead to security issues in the future.
