How can I consolidate my UTXOs?

To consolidate unspent bitcoin into a single UTXO to reduce future transaction fees, follow the steps below: 

1. From the Bitkey app Home Screen select Settings
   
   
2. Under Advanced select  UTXO Consolidation
   • You must have at least two UTXOs in your wallet to do a consolidation.
   • Bitkey is unable to consolidate unconfirmed incoming transactions until they have been confirmed. If Bitkey detects unconfirmed incoming transactions, you will be given the option to proceed with the consolidation without these transactions, or you can cancel the consolidation and start again once the transactions have been confirmed.
   • The maximum number of UTXOs that can be consolidated in a transaction is 200. If you have more than 200 UTXOs, you will have to perform multiple consolidation transactions.
     
     
3. Review the details of your transaction before you continue.
   • Consolidation time: We selected a 60 minute transfer target to get you the lowest network fees for consolidation.
   • Number of UTXOs: This is the number of UTXOs that will be consolidated
   • Consolidation cost: The number of UTXOs being consolidated and the current network fees determine the total cost. Bitkey never charges or receives fees for transfers.
     
     
4. Select Consolidate UTXOs and confirm using your hardware device.
   • A UTXO consolidation transaction may take longer than a typical transaction. When you confirm the transaction with your hardware device, be sure to hold the Bitkey to your phone until you see a screen that says Success.
     Note: UTXO consolidation transactions will always require confirmation from your hardware device, even if you are below your daily transfer limit.
     
     
5. Once your transaction has been confirmed, you will see it listed as UTXO Consolidation on the Bitkey Home Screen with the cost of the consolidation.
   • If the Bitcoin network becomes congested after you have sent your transaction, and your transaction has not been confirmed in the timeframe specified, you can pay an additional fee to speed up your transaction. See How can I speed up my transaction? for more information.

Note: Currently, UTXO consolidation is intended for advanced users who are already familiar with the process and its trade-offs, which is why it's located in the Advanced Settings. We plan to develop a more user-friendly version of this tool, complete with educational resources to guide users in making informed decisions about when and whether to consolidate.