In brief
- This week, Ledger released version 2.11.1 of Ledger Live, which introduces the Coin Control feature.
- The feature allows Ledger Live users to designated which addresses and coins to use when making transactions.
- The feature can prevent outsiders from tracking users via tiny amounts of Bitcoin known as dust.
First-in, first-out is a standard accounting practice in which the oldest assets are the first to be sold. Hardware wallet company Ledger says that could be harmful when applied to crypto storage.
Ledger, maker of the Nano S and Nano X, has updated its Ledger Live software, which helps users manage crypto stored on their devices, to include Coin Control. Now, Ledger users can determine which of their Bitcoin addresses to use when making transactions, rather than automatically using the oldest coins in their wallet.
How To Get a Bitcoin Address
When taking your first steps into the Bitcoin and cryptocurrency space, your first challenge is finding a safe, secure way to store your crypto. Fortunately, there's a huge variety of Bitcoin wallet providers available. These allow you to create a Bitcoin address (also known as a public key) that can be used for sending and receiving Bitcoin (BTC). Some of these wallets also provide access to the private keys (essentially the key that controls the public address), allowing you to quickly move yo...
That’s important for privacy, Ledger says, because it prevents others from tracking your identity through the use of dust. Bitcoin dust is a minuscule amount of BTC worth less than the transaction fees to send it. (Think about a credit card transaction of just a few cents.)
Some gladly pay the fees, however. Blockchain analytics firms or investigators may send dust to certain addresses because if recipients sweep this dust up with the rest of their Bitcoin and/or spend it, they provide valuable clues to their identity.
Which is why Ledger says you now don’t have to touch those tiny “unspent transaction outputs,” known as UTXO. (It hasn’t yet figured out how to let users consolidate the dust or clean their wallets while also maintaining their privacy.)
Ledger pointed to two additional benefits of Coin Control: If users do want to spend those UTXO and clean out their wallet, they can choose more valuable ones, thereby saving money on network fees. Users can also designate specific addresses for certain purposes, akin to how a freelance worker might maintain separate bank accounts for work and personal expenses.
The feature is available for Bitcoin and Bitcoin derivatives as part of Ledger Live version 2.11.1, which went live Tuesday, September 15.
