Thanks for the reminder. As you mentioned funds in exchanges, there could be unexpected maintenance coming from them. It's always a surprise that nobody knows when they will happen to do especially when the market is growing up crazily. Also, this website is helpful to check the status of the mempool and tx fees.
https://jochen-hoenicke.de/queue/#0,24h
Topic: Reminder: prepare your wallet before the next bull run - page 2. (Read 364 times)
Otherwise, everyone spying on you will be able to find out how many bitcoin you have.
I'm not saying that you should put all your BTC in one wallet. This is, for sure, not the best idea. I'm saying about consolidating small inputs in hot wallet.
As an complete amateur in this field I'm doing it like that:
I'm using few wallets:
1 - cold main wallet. Not in use for months. Most likely not in use till $100k-$ 1 mln worth BTC. Mixed anonymous BTC.
2 - semi cold wallet. Big transfer from and to exchanges. Storing profit waiting for good price to dump.
3 - mobile wallet for fast deposit/withdrawals.
4 - mobile wallet for small deposits (f.e. signature campaign payouts)
Currently, my nr. 4 wallet stores ~400$ worth BTC and transaction fee for next block transfer is equal to 14$. At BTC worth 50 000$ it will be around 1600$. I can't imagine paying 500$ to transfer it. No matter if I'll consolidate it or not total amount is visible in explorer as Total Received, Total Sent and Final Balance. No matter if I'll consolidate it or not all deposits and withdrawals are visible in explorer (trackable). Am I wrong?
If you have a wallet that have a lot of inputs (many small deposits) than I suggest you to transfer everything to new wallet with Segwit address. That way you will lower number of inputs to 1. As you are not in hurry you can set small fee (50 sat/byte is small now). That way at a cost of 2$ you will limit your transaction fee from 500$ to 100$ (just my dump guess according this 100$ and 500$) in a case BTC is just starting new bull run as strong as 2017 was.
There is nothing new in this topic. Everything was well described before on bitcointalk. It's just a reminder:
Average transaction Fee on BTC just pass 10$. Further price and volatility grow will only push this higher and higher. During 2017 bubble average transaction fee passed 50$.
https://ycharts.com/indicators/bitcoin_average_transaction_fee
I guess after BTC breaking 50k$ transaction fee will reach 100-500$. I think its the last time to optimize your BTC wallet.
If you have a wallet that have a lot of inputs (many small deposits - f.e. signature campaing payouts) than I suggest you to transfer everything to new wallet with Segwit address. That way you will lower number of inputs to 1 for your next transaction that will be issued from this wallet. As you are not in hurry you can set small fee (50 sat/byte is small now). That way at a cost of 2$ you will limit your transaction fee from 500$ to 100$ in case BTC is just starting new bull run as strong as 2017 was (just my dump guess according this 100$ and 500$).
You can also wrap your BTC on other fast chain but ... its not what true bitcoin maximalist do
Oh.. BTW... Withdraw your funds from exchanges/casinos and other third party wallets during bull runs. Bull runs makes exit scams more tempting. In some cases exit-scam is a must if scam service implemented fractional reserve system before and now is running out of bitcoin that are worth more and more - https://bitcointalksearch.org/topic/m.49096584
Average transaction Fee on BTC just pass 10$. Further price and volatility grow will only push this higher and higher. During 2017 bubble average transaction fee passed 50$.
https://ycharts.com/indicators/bitcoin_average_transaction_fee
I guess after BTC breaking 50k$ transaction fee will reach 100-500$. I think its the last time to optimize your BTC wallet.
How to minimize transaction fees?
With the current spike in fees, many would be interested in ways to reduce the fees. To reduce the fees one or both of the variable involve has to be reduced.
The standard feerate is determined by the level of activity in the network, so;
• timing your transactions can result in significantly lower fees. During a FOMO period, lots of investors are looking to get in and more traders are active, this is probably not a good time to transact, if it's not time sensitive, when the resulting activity cools, the feerate would also reduce, leading to lower transaction fees.
Reducing the transaction size would also reduce the fees incurred, this can be done through a couple of ways:
• Reducing the number of inputs: the higher the number of inputs involved in a transaction, the higher the size, so to reduce the size, less inputs should be spent.
If I receive 0.4BTC and spend that in a single transaction, the size would be smaller than a 0.2BTC transaction comprising two separate inputs (0.1,0.1BTC).
• Batching receptients : add multiple receiving addresses to a single transaction saves more cost than sending them in separate transactions.
• Consolidateling inputs and outputs: when an entire input involved in a transaction is not spent, this creates the need for a change address to receive the unspent coins. Spending the exact amount of an input would eliminate the need for a change address hence reducing the amount of outputs and also the transaction size.
Note that, inputs weigh more in a transaction and reducing them should be prioritized when looking to reduce fees.
•Using a Segwit address: for a detailed explanation on how segwit functions, check out this thread - https://bitcointalksearch.org/topic/m.52985661
Higher transaction fees and lower size means a transaction is likely to get picked by a miner and confirmed much faster. If you're not in a particular hurry, you can select a minimal fee and wait for it to get confirmed. If a fee is too low a transaction can remain pending till it is dropped from the mempool (this takes ~ 72hours). If this happens the transaction is cancelled and the inputs are returned to the wallet.
With the current spike in fees, many would be interested in ways to reduce the fees. To reduce the fees one or both of the variable involve has to be reduced.
The standard feerate is determined by the level of activity in the network, so;
• timing your transactions can result in significantly lower fees. During a FOMO period, lots of investors are looking to get in and more traders are active, this is probably not a good time to transact, if it's not time sensitive, when the resulting activity cools, the feerate would also reduce, leading to lower transaction fees.
Reducing the transaction size would also reduce the fees incurred, this can be done through a couple of ways:
• Reducing the number of inputs: the higher the number of inputs involved in a transaction, the higher the size, so to reduce the size, less inputs should be spent.
If I receive 0.4BTC and spend that in a single transaction, the size would be smaller than a 0.2BTC transaction comprising two separate inputs (0.1,0.1BTC).
• Batching receptients : add multiple receiving addresses to a single transaction saves more cost than sending them in separate transactions.
• Consolidateling inputs and outputs: when an entire input involved in a transaction is not spent, this creates the need for a change address to receive the unspent coins. Spending the exact amount of an input would eliminate the need for a change address hence reducing the amount of outputs and also the transaction size.
Note that, inputs weigh more in a transaction and reducing them should be prioritized when looking to reduce fees.
•Using a Segwit address: for a detailed explanation on how segwit functions, check out this thread - https://bitcointalksearch.org/topic/m.52985661
Higher transaction fees and lower size means a transaction is likely to get picked by a miner and confirmed much faster. If you're not in a particular hurry, you can select a minimal fee and wait for it to get confirmed. If a fee is too low a transaction can remain pending till it is dropped from the mempool (this takes ~ 72hours). If this happens the transaction is cancelled and the inputs are returned to the wallet.
If you have a wallet that have a lot of inputs (many small deposits - f.e. signature campaing payouts) than I suggest you to transfer everything to new wallet with Segwit address. That way you will lower number of inputs to 1 for your next transaction that will be issued from this wallet. As you are not in hurry you can set small fee (50 sat/byte is small now). That way at a cost of 2$ you will limit your transaction fee from 500$ to 100$ in case BTC is just starting new bull run as strong as 2017 was (just my dump guess according this 100$ and 500$).
You can also wrap your BTC on other fast chain but ... its not what true bitcoin maximalist do
Oh.. BTW... Withdraw your funds from exchanges/casinos and other third party wallets during bull runs. Bull runs makes exit scams more tempting. In some cases exit-scam is a must if scam service implemented fractional reserve system before and now is running out of bitcoin that are worth more and more - https://bitcointalksearch.org/topic/m.49096584
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