Is there a minimum recommended transaction size? I’ve read making numerous micro transfers (from mining revenue for example) can be problematic when wanting to withdraw from the device. Is this true? And is it better to store small amounts of etc in a hot wallet until they have reached a certain value, and then transfer to the Trezor?
Well I thinnk it depends on the funds your talking about.
Ethereum and its token ETH, for example, are managed under a account model and therefore your funds are presented to you in form of a balance. Whenever you make a tx the blockchain checks the balance of your wallet and sends the portion intended.
In the case of Bitcoin and btc, for example, the network works under a UTXO model.
UtXO (Unspent Transaction Output)
Each UTXO holds a certain amount of btc ready to be sent (NOTE they are unspent).
So in fact in your wallet you have a set of UTXO that the wallet shows as your “balance” and is the total of btc held in each UTXO.
Lets say you have
UTXO 0 = 0.005btc
UTXO 1 = 0.01btc
UTXO 2 = 0.02btc
If you wanted to send 0.005btc the wallet can choose to send only UTXO 0 (some wallets do this automatically, don’t give you the option of choosing which UTXO to use in a particular tx)
If you wanted to send 0.0175btc the wallet can send UTXO 0 + UTXO 1 + a portion of UTXO 2,
Sending you back the change from the sum, this is known as a change address
Now you want to send the total of you balance
The wallet aggregates all of these UTXOs and sends the full balance. This tx is heavier in Size so the fees could be higher, because it has to check all UTXOs if they are valid and the balance they hold etc.
Just a representation:
THe more UTXOs you have you may incure on higher fees. because the info that has to be verified and included in the tx.
Hope this Helps
If you want to learn more you can check trezor blog search for UTXOs or a little more technical book Mastering Bitcoin by Andreas Antonopolus.
That’s very helpful, ty. With the btc example, while I understand fees would be higher with a larger number of UTXO, would the Trezor have an issue or is that just nonsense. I’d read somewhere if a very large amount of combined transactions had to be factored in - say you’d DCA’d for a few years and then wanted to cash out, it would put a strain on the device. It sounds like nonsense to me as I am sure the designers took that in to account, but just interested.
Thanks again for very detailed response, and I will get the book you recommended too.
This would only be a concern in case you are mining to HW wallet. DCA is not an issue.
Just use Segwit account or create more wallets by using passphrase:
Ty, much appreciated