I hate how money works in this game. It seems like the only reason is exists is to be a really hamfisted punishment for dying. So they give you the choice of risking your earned pixels if you die, or guaranteeing loss but protecting against excessive loss from dying.
It's dumb and I hate it. Especially considering how easy it is to work around. Since my main source of pixel income is from sticking stuff into a refinery, I just carry a refinery and some assorted ores around with me and stick them in when I want to buy or make something. I have, at most, a thousand pixels on me at any given time because I just happened to pick them up from monsters I've killed. If I need to, however, I could spend a minute refining ores and get 10k or more pixels without risking a single thing.
So yeah. You should just be able to stick pixels into storage and be done with it. Have certain merchants or crafting environments only exist in dangerous areas and it'll force you to risk losing pixels to get to them. Compressing pixels should give you a slightly devalued, but viable and no-loss-on-death currency - It would work exactly the same as pixels in that you can buy stuff with it (And pixels will be spent first), but you lose some pixels turning it into the no-loss-on-death currency.
Boom, problem solved, and it's not nearly as hamfisted and actually benefits game play with proper risk and reward.