Might hierarchical deterministic wallets increase the fees you pay for a transaction as a trade-off for privacy gains?


You are right that spending multiple UTXOs increases the transaction’s size and therefore fee. However, since each UTXO is signed individually, it doesn’t matter if they all belong to the same address or different addresses, there is no advantage in address reuse.

What you can do is to consolidate your smaller UTXOs into larger ones during times of low transaction fees, however you do need to be mindful of the privacy implications of that.

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