I did some research about Trezor hardware wallets, and they are saying that Trezor is not designed as a mining rewards wallet because of high number of transactions,
so they are suggesting costumers to compile more transactions to one and then deposit to Trezor wallet.
Lol. Ledger has the exact same recommendation.
For example, if I open Ledger live without connecting the Ledger to my computer, my computer works very hard to synchronize my transactions until the program crashes.
Ledger Live is quite bad, Electrum works better. Unless you have thousands of transactions/addresses, in that case Electrum servers may time out too.
I've never seen a reason why mining rewards should stay on the pools longer than necessary, so I've always set it to the minimum payout amount.
I always thought the main reason is to reduce consolidation fees when you use the inputs, it didn't cross my mind that it would overload a hardware wallet. Easy fix: receive small payments in Electrum or Bitcoin Core, and send them to your hardware wallet (with the lowest possible transaction fee) once your balance reaches a certain amount.
I hadn't thought about that either, but I think it won't be a big difference, but it would be avoidable.
While fees are low, you're right. But once fees peak (like in 2017), inputs around 0.001
BTC mostly go towards fees. Like this:
someone made
this 4909 bytes transaction with 33 inputs and 510 Satoshis/byte fee. After paying fees, his 0.033
BTC turned into only 0.0079539
BTC. If he would make the same transaction now with 20 Satoshis/byte fee, he would have saved 0.024
BTC. Instead of just 0.0079539
BTC, he would have ended up with 4 times more!