Cryptionary
Term

UTXO Consolidation

The practice of combining many small unspent outputs into fewer, larger ones to reduce future fees and input bloat.

Type:
wallet
fee
1
definition

UTXO consolidation groups multiple small coins into bigger ones, which can lower fees for later payments (fewer inputs) and speed up signing.

2
caution
  • Consolidate during low-fee periods to save costs
  • Consolidation can link addresses and harm privacy; use coin control and labeling
  • Avoid consolidating tainted coins with clean ones if privacy is a concern

All terms and definitions may update as the Cryptionary improves.