Term
Coin Selection
The algorithm a wallet uses to choose which UTXOs to spend, impacting fees, privacy, and change.
Type:
wallet
fee
privacy
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 fundamental blockchain data structure representing unspent value that can be used in future transactions.
technical
blockchain
UTXO Consolidation
→The practice of combining many small unspent outputs into fewer, larger ones to reduce future fees and input bloat.
wallet
fee
All terms and definitions may update as the Cryptionary improves.
