What does UTXO stand for?

UTXO stands for Unspent Transaction Output, Bitcoin's accounting model.

Can you partially spend a UTXO?

UTXOs must be fully spent; any excess is returned as change in a new UTXO.

What is "dust" in Bitcoin?

Dust refers to UTXOs so small that the fee to spend them exceeds their value.

Why is coin control important for privacy?

Coin control lets you choose specific UTXOs to spend, preventing unwanted address linking.

What is UTXO consolidation?

UTXO consolidation combines multiple small UTXOs into one larger one, ideally during low fee periods.

UTXO Model and Coin Control

11 min readinteractiveIncludes quiz · 5 questions

Bitcoin does not work like a bank balance. You do not have "$500 in your account." You have a collection of individual coins (UTXOs) of different sizes — like having a wallet full of specific bills and coins. Spending means breaking a larger coin and getting change back.

Master Bitcoin's UTXO model and learn advanced coin control techniques for privacy and efficiency.

UTXO Fundamentals:

•Unspent Transaction Output: Bitcoin's accounting model
•No Balances: Only unspent outputs
•Atomic: Outputs must be fully spent
•Change: Excess returns as new UTXO
•Coin Age: Older coins = higher priority

Coin Control Benefits:

•Privacy: Choose which coins to spend
•Fee Optimization: Consolidate during low fees
•Dust Management: Combine small UTXOs
•Labeling: Track coin sources
•CoinJoin Prep: Prepare equal-sized UTXOs

Key Takeaway

Good UTXO management means consolidating small coins during low-fee periods and avoiding "dust" — tiny UTXOs that cost more in fees to spend than they are worth.

Test Your Knowledge

5 questions · Passing score: 80%

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