I am wondering if anyone here has any recommendations for UTXO management best practices. Setting aside privacy issues (I am aware of those), and focusing only on future cost savings, how big should my UTXOs be? For example, if I have 10 bitcoins in cold storage, should I make one 10 bitcoin UTXO? Two 5 bitcoin UTXOs? Ten 1 bitcoin UTXOs? I am sure the answer is different for everyone base don their preferences and needs, but am wondering what people think. Thank you for your opinions.
UTXOs are what you receive from incoming transactions or as left-overs of your past sending transactions. Are you able to control number of UXTOs in your wallet?
You can and you can not.
You can because you can consolidate your inputs (UTXOs) as your preparation for your outputs later.
You can not because you can not control what people send coins to you, the more time you receive coins, a more UTXOs you will have if you don't consolidate them.
To save fees for consolidations and for sending transactions, you should pick times when mempools are clear to enjoy low, cheap fee rates.
[Guide] Consolidate your small inputshttps://mempool.space/https://jochen-hoenicke.de/queue/#BTC%20(default%20mempool),24h,weight