How to use destination tags and memos
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
Some assets — XRP and XLM among them — need a destination tag or memo in addition to the address. Exchanges manage many customers behind one shared address, so without the tag there is no way to tell whose deposit it is and it will not be credited. Copy the tag from the deposit screen with the same care you give the address.
Key points
- For assets that require one, a correct address alone will not credit the deposit
- The tag appears on the deposit screen beside the address — always take both from the same place
- Some destinations, such as a personal wallet, need no tag. Follow the recipient's own instructions
- Recovering a deposit sent without a tag depends entirely on the recipient, and may be impossible
Definition
An identifier that says which customer a deposit belongs to when one address is shared by many users. Depending on the asset it is called a destination tag, a memo or a comment.
Understanding why tags exist makes them harder to get wrong. On some blockchains, creating an account costs something or requires a minimum balance to keep open. Rather than issue an address per customer, exchanges therefore receive into one address of their own and use an accompanying number or string to sort deposits by customer. That sorting key is the tag or memo.
The assets that commonly need one include XRP (destination tag), XLM (memo), ATOM (memo) and EOS (memo). But the requirement depends on the recipient's setup, not only on the asset. The test is simple: if the recipient's deposit screen shows a tag or memo field, you need it; if it does not, you do not. Do not guess.
In practice you display both the address and the tag on the receiving deposit screen, copy each, and paste them into the matching fields on the sending side. Many exchanges warn you if you try to send with the tag field empty, but not all do. Do not rely on the warning — confirm the field yourself, and compare the pasted digits against the receiving display just as you do with the address.
There are also cases where you must not enter one. Sending to a personal wallet that has no concept of tags can fail outright if you supply a value. If the recipient says none is needed, leave it blank. Again, the deciding factor is what the receiving screen tells you.
If you have already sent without a tag, contact the receiving service's support immediately. Have the transaction ID (hash), the sending address, the time and the amount ready. Some operators can investigate and credit it, but it takes time, may carry a fee, and sometimes cannot be done at all. The one reliable way to avoid all of this is a small test transfer first.
Watch out for
- · Without the tag, a correct address still will not credit your balance. Assume recovery may not be possible
- · Using someone else's tag puts the funds in their account, and it cannot be reversed
- · Your tag is not necessarily the same every time. Open the deposit screen each time and use the value shown then
Frequently asked questions
What is the difference between a tag and a memo?
They serve the same purpose and differ only by asset convention: XRP uses a numeric destination tag, while XLM and others use a memo that can contain text. Either way, enter exactly what the recipient shows you.