When are Bitcoin transaction outputs generated more than two?

In my understanding, if my wallet has only UTXOs that have more values than i wanted to spend(send), then two outputs are generated which one is for sending my BTC to someone and another is for change to my wallet back. But I saw several transactions in bitcoin explorer that has more than 3 outputs. What are they?

1 Answer 1


Bitcoin inputs and outputs are only limited by transaction size. There are scenarios when you may see a few inputs with many outputs, such as an exchange performing many user withdrawals in a single transaction.

Conversely, you often see transactions with hundreds of inputs, and very few outputs. These are also usually exchanges, or people/companies with lots of receiving addresses, combining the utxos into a handful or large utxos (usually to a cold wallet).

  • I did't understand what you comment exactly, what does mean 'exchange performing many user withdrawals in a single transaction'? Is that withdrawals from child wallet or transferring to multiple wallets simultaneously?
    – 송제호
    Aug 6, 2018 at 6:01
  • It's usually an exchange sending withdrawals for multiple users to each of their addresses in a single transaction Aug 6, 2018 at 6:06

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