Due to the use of UTXOs (unspent transaction outputs) on Bitcoin (BTC), item and collection offers on Ordinals work slightly differently from other popular blockchains such as Solana (SOL). This article will explain these differences so you can confidently make offers on your favorite Ordinals collections.
How do bid processes differ between Solana and Bitcoin?
On Solana, users are able to directly use their entire wallet balance (minus some SOL for fees) to make a bid - fairly straightforward.
Whereas on Bitcoin, the UTXOs in your wallet are used to create collection offers.
Each individual offer you make on a collection utilizes UTXOs, and the highest offer price you can set has to be equivalent or less than the size of the UTXO used.
What does this mean for me?
Collection Offers
For Collection Offers, the same UTXO can be used to make offers on multiple collections.
For example, if i only have one large UTXO of 0.5 BTC, I can use that same UTXO to make a collection offer on Bitcoin Puppets, as well as OMB. This also means that once a collection offer from any collection is accepted, all live collection offers are invalidated and will need to be placed again.
Note:
Only one collection offer can be made per collection at any time.
Item Offers
For Item Offers, you will be able to make offers on both listed and unlisted ordinals with the same UTXO. Simply head over to any item on Magic Eden and click "Make Offer". When making an offer, you will sign a PSBT that "reserves" your UTXO and authorizes it to be spent if the offer gets accepted.
You will be able to use the same UTXO to make multiple item offers across different collections. However, if any of the UTXOs "reserved" for item offers are spent, all existing item offer will be invalidated.
I see 'Insufficient Funds', but I have enough BTC in my balance.
If you encounter the above error, even though you have sufficient BTC in your payment wallet, it probably means that you do not have enough confirmed and spendable UTXOs.
A simple remedy would be to perform a BTC self-transfer from and to your payment wallet. This would create a UTXO equivalent to the size of the transfer amount.
After that transaction confirms, you will be able to continue making collection offers.
Navigating the world of NFTs has never been easier with Magic Eden's intuitive platform. Start exploring and trading with confidence today!
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