What Is A Memo In Cryptocurrency

Cryptocurrency transfer is a very responsible process, as you need to enter the address carefully to ensure your funds are credited. For this purpose, some coins like Bitcoin and Ethereum have their own unique addresses, but for others like XRP or Cosmos, crypto exchanges use a shared address. In these cases, a destination tag or memo is entered before the sending to identify the necessary account.

In this article, we will explain more about destination tags, tell you which cryptocurrencies need them, and give algorithms on how to find memos in different services.

What Is A Memo?

A memo, also called a destination tag, is unique information required to accurately complete cryptocurrency transactions. It looks like a numeric code of 6 digits or more and is listed next to the main wallet address.

As we have already said, the memo is necessary when making transfers with certain types of cryptocurrencies, which we will talk about further in this article. These memos are used in sending funds to crypto wallets or exchanges that use the shared deposit address; so the tags help the receiving platform to direct the transaction to the right user. Memos also help identify transfers within a particular network. Therefore, destination tags are essential for discerning a user in a shared address environment.

Why Do You Need A Destination Tag For XRP Transactions?

One of the most commonly used coins that require a memo for its transactions is Ripple (XRP). A XRP destination tag is the same numeric code that is needed when sending coins to services that use a single XRP address. The tag serves as a unique identifier that helps the platform link the transaction to a specific recipient account.

Due to the lack of functions for some platforms to generate individual XRP addresses, coins may not be credited correctly or may be delayed or lost. In this case, the user will have to contact the service's support team to solve the problem, but it may take a long time. Sometimes, XRP coins are impossible to get back.

To avoid such problems, it is worth getting an XRP destination tag. The process is simple: you have to log in to the crypto platform you are using, go to the “Wallet” or “Balance” section, click on XRP, and choose the “Deposit” option. Then, the destination tag will appear, and all that remains is to copy it for processing the transaction.

Cryptocurrencies That Use Memo/Destination Tag

Now, let's take a closer look at the coins whose transactions require the use of a destination tag. We have collected the most popular ones and given examples of what their memos might look like:

• Ripple (XRP). You already know that for XRP transactions, the tag is used to identify the recipient's account on an exchange or wallet. Example of a destination tag for XRP: “12345678”.

• Binance Coin (BNB). This coin also requires a memo when sending to specific addresses, most often when using the Binance Chain. Example of a memo for BNB: “98765432”.

• Cosmos (ATOM). In the case of the Cosmos cryptocurrency, a memo is required for transfers to exchanges. Example of a memo for ATOM: “Deposit to account 11223344”.

• Stellar (XLM). The memo is necessary for the classic scheme of distinguishing users united by a common address. Example of a memo for XLM: “Deposit to user123” or “Memo ID: 987654321”.

• EOS. The coin uses a memo to differentiate users depositing in the same wallet. Example of a memo for EOS: “memo123456”.

• Hedera Hashgraph (HBAR). This cryptocurrency utilizes the memo for transfers to centralized exchanges. Example of a memo for HBAR: “tx for user 1001”.

The destination tag is an essential transaction identifier to ensure that funds get to the correct address. However, it is not needed for all cryptocurrencies and not for all crypto services, so before making a transaction, study the rules of working with the specific coin and the information block on the recipient platform you are using.

We hope this guide has helped you understand what a memo (destination tag) is and what it is for. We offer you to learn how to get it in more detail, using the example of XRP transactions in well-known services in the block of frequently asked questions in this article.

FAQ

How To Find XRP Destination Tag On Trust Wallet?

Here is the algorithm on how to find the destination tag on Trust Wallet:

• Start Trust Wallet. Open the Trust Wallet app and log in to your account.

• Select XRP. Click on XRP among the suggested coins on the main screen.

• Go to the receive option. You will be taken to the XRP coin page, where you should click on “Receive”.

• Get a destination tag. You will see the wallet address and the destination tag. Copy the tag and save it for future actions.

How To Find XRP Destination Tag On Binance?

Here is the algorithm of actions that will lead you to get the destination tag on the Binance crypto exchange:

• Start Binance. Open the Binance app or go to the website, and log in to your account.

• Go to Binance Wallet. Open the menu, click on “Wallet”, select “Deposit” if you are working from the mobile app, and “Fiat and Spot” if you are using the desktop version.

• Select XRP. Find XRP among the available coins and click on it.

• Top up your account. Click on the “Deposit” option to fund your account with XRP coins or to find out about your current account balance.

• Get the destination tag. The platform will display the deposit address and the destination tag on the selected page. Copy both, as you will need them when making the transfer.

What Will Happen If I Send XRP Without A Destination Tag?

If you transfer XRP coins without specifying a destination tag to the platform that requires it, your transaction will be completed, but the funds will not be credited to your account automatically. Your assets will be stuck; the XRP coins will be stored in the platform's wallet but will not reach your account.

If you encounter such a situation, you will need to contact the platform's support to solve the problem. You'll need to provide specialists with the transaction details, including its ID, the amount of XRP being sent, the wallet address, and the time of making the transfer. Remember that some platforms may charge a fee to recover funds sent without a memo.