EVAN KALOUDIS on Nostr: if you have a fat stash, single utxo, and you pay someone on-chain with it, they're ...

if you have a fat stash, single utxo, and you pay someone on-chain with it, they're going to know how much bitcoin you own and will also be able to trace the rest of those funds on-chain

if you split up your funds into many utxos, you limit this to a degree

the tradeoff is that if you have to merge multiple utxos to make a transaction, you're linking them anyway, and have to pay more in on-chain transaction fees

the right balance varies for everyone and is more of an art than a science, because it's tough to know what kind of on-chain transactions you'll have to make in the future

lastly, try to pay with lightning when possible as it affords you great payer privacy - no way for the receiver to snoop on your balances on-chain