Coin Selection
wallet · fee · privacy
The algorithm a wallet uses to choose which UTXOs to spend, impacting fees, privacy, and change.
1.definition
Coin selection strategies (e.g., smallest-first, knapsack, branch and bound) determine input sets for a payment. Good selection reduces fees and avoids linking unrelated addresses.
2.tip
- Use wallets with coin control for important transactions
- Avoid creating tiny change; it raises future fees
Related terms
Coin Control
→Manual selection of specific UTXOs when creating a transaction.
wallet · privacy
Unspent Transaction Output (UTXO)
→A discrete spendable output on a UTXO blockchain, similar to a digital coin that must be spent whole.
technical · blockchain
UTXO Consolidation
→Combining many small unspent outputs into fewer larger ones to reduce future transaction size and fee overhead.
wallet · fee
All terms and definitions may update as the Cryptionary improves.