In the realm of Bitcoin Ordinals, the art of managing your UTXOs (Unspent Transaction Outputs) plays a crucial role in ensuring efficient management of your rare sats (Satoshis). At Magic Eden Bitcoin, we've rolled out features to help you extract and split UTXOs seamlessly. Whether you're aiming to organize your UTXOs or to prepare them for sale on our rare sats marketplace, this guide will walk you through every step.
Understanding UTXOs and the 'dust limit'
The Bitcoin network imposes a minimum UTXO size, which historically stands at 546 satoshis for P2PKH outputs. This is to deter 'dust' attacks – potential spamming of the blockchain with minuscule, non-spendable amounts. This will subject you to a limitation in the size of the UTXO’s you can extract and split.
It's important to note these distinct UTXO size requirements for different Bitcoin address types to ensure smooth transactions and prevent potential issues related to insufficient spendable funds.
- P2PKH addresses (starting with '1'): Minimum UTXO size of 546 satoshis (as mentioned above).
- P2SH-P2WPKH addresses (starting with '3'): Minimum UTXO size of 540 satoshis.
- P2WPKH addresses (starting with 'bc1q'): Minimum UTXO size of 294 satoshis.
- P2TR addresses (starting with 'bc1p'): Minimum UTXO size of 330 satoshis.
Note:
If you're facing an error message such as "not enough confirmed spendable funds" despite having a sufficient BTC balance, it could be due to rare sats being present in your wallet. Always check for rare sats that might be impacting your transaction capabilities. For a smooth purchasing experience, please follow our guide on extracting rare sats below.
Extracting sats
When you desire a specific range of sats to stand on its own as a UTXO, follow these steps:
Access your profile
Click on your address in the top right and select 'My items'.
View your rare sats
Head over to the 'Rare Sats' tab. Each UTXO will appear on a distinct line.
Choose a UTXO
Suppose you have a UTXO with 600 Pizza sats and 600 vintage sats and wish to extract the pizza sats.
Check details
Click on the 'List/Details' button to view the UTXO details Modal.
Manage your UTXO
Click on the 'Manage UTXO' button and navigate to the 'Extract Range' tab.
Select a range
View the different rare sats ranges and click on the desired range, in this case, the Pizza sats range. We can extract the range in this example as it is above the ‘Dust Limit’ of 546 satoshis.
Preview
Click 'Preview extract' and review the extraction outputs.
Select destination wallet
Ensure the receiving wallet is your preferred choice. While it defaults to your connected Ordinals wallet, options include the payments wallet or a custom address.
We advise against sending UTXOs with rare sats to a Bitcoin Payment address.
Finalize the extraction
Select your Bitcoin Network Fee (Low, Medium, or High), and click the pink 'Extract' button to confirm the transaction through your wallet.
Completion
Upon transaction confirmation, your extracted sats will appear in a new UTXO in the chosen Bitcoin wallet. Transaction confirmation will take time and varies depending on network demand. You can track your transaction status using a Bitcion blockchain explorer and your transaction hash.
Extracting Multiple Sat Ranges Simultaneously
Magic Eden has introduced a feature allowing you to extract multiple sat ranges at once. This functionality simplifies the extraction process, especially for those who have multiple sat ranges to deal with.
Why is this Important?
Users occasionally encounter UTXOs containing multiple rare sat ranges. Previously, extracting each of these ranges was a task that had to be done individually. Such UTXOs often increased transaction sizes and subsequently, the associated fees.
To address this, our new feature aims to streamline the extraction process and enhance the overall user experience. By allowing the extraction of multiple sat ranges in one go, users can efficiently organize their assets and ensure their UTXOs are optimized for future transactions.
How it Works:
- Navigate to Your UTXOs: Go to your profile and access your UTXOs as previously instructed in the above guide.
- Multiple Selection: When in the 'Manage UTXO' interface, you can now select multiple rare sat ranges that you wish to extract.
- Preview & Execute: Click on 'Preview extract' as you usually would, but now you'll see a comprehensive extraction overview for all the selected sat ranges. Once satisfied, proceed with the extraction.
Note:
When making purchases on Magic Eden, our platform follows a two-round payment UTXO selection process. In the first round, the system will attempt to select common UTXOs for payments. If the first round doesn't suffice, the second round looks at rare sats in the UTXO. Extracting these rare sats is crucial before making transactions.
Splitting sats
For those with sizable UTXOs aiming to split them for sales or other purposes, here's the process.
Access and select
Similar to extraction, navigate to your UTXOs through your profile and choose the desired UTXO.
Navigate
After opening the 'Manage UTXO' button, click on the 'Split' tab.
UTXO size requirement
Remember, you need a minimum of 1092 sats to split, equivalent to two UTXOs of 546 sats.
Determine splits
Use the slider to decide the number of splits and view the autopopulated sat amount for each UTXO.
Preview
Click 'Preview split' and review the input and output details. In this example, one UTXO with 1092 pizza sats is being split into two UTXOs with 546 pizza sats in each.
Select destination wallet
Defaulting to the Ordinals wallet, you can choose between this, the Payment Wallet, or a custom address.
We recommend the Ordinals wallet for your rare sats, you can read more about it in this article.
Finalize the split
Select your transaction fee rate and click the pink 'Split' button, confirming the transaction in your wallet.
Completion
After the necessary confirmations, the UTXOs will be dispatched to the selected wallet. Please note that the Bitcoin blockchain takes time to confirm transactions.
Mastering the techniques of extracting and splitting UTXOs not only ensures smoother transactions but also offers flexibility in managing and utilizing your Bitcoin assets. New protocols on Bitcoin, including Runes, use UTXO. With Magic Eden Bitcoin's intuitive features(including Magic Eden's Ordinals Marketplace and RunesPlatform), the power of UTXO management is now at your fingertips. Dive in, and enrich your Bitcoin experience!
