What Is a Memo (Destination Tag) in Cryptocurrency?

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Transferring cryptocurrency requires precision and care—especially when it comes to entering the correct address. While major cryptocurrencies like Bitcoin and Ethereum use unique wallet addresses for each user, some digital assets operate differently. For certain coins such as XRP, ATOM, or BNB, exchanges and wallets often use shared deposit addresses. In these cases, a memo—also known as a destination tag—becomes essential to ensure your funds reach the right account.

This guide will explain what a memo is, which cryptocurrencies require one, and how to find and use it correctly to avoid lost or stuck transactions.

What Is a Memo in Crypto?

A memo, or destination tag, is a unique identifier used to direct cryptocurrency transfers to the correct recipient when a shared wallet address is involved. It typically appears as a string of numbers or text—ranging from 6 to over 20 characters—and is displayed alongside the main wallet address.

👉 Discover how to securely send crypto with the right destination tag.

Memos are primarily used by blockchains that support multi-user accounts on a single address. Without the correct memo, even if the wallet address is accurate, your funds may not be credited to your account—or worse, could be lost permanently.

For example:

These identifiers help receiving platforms—like exchanges or custodial wallets—route incoming funds to the correct internal account.

Why Do XRP Transactions Require a Destination Tag?

Ripple (XRP) is one of the most well-known cryptocurrencies requiring a destination tag. Due to technical limitations in generating unique deposit addresses for every user, many platforms use a single shared XRP address for all customers. The destination tag acts as a unique reference number that links your transaction to your specific account.

If you send XRP without including the correct destination tag:

Recovering such funds usually requires contacting customer support and providing full transaction details—including the TXID, amount sent, timestamp, and wallet address. Some platforms may charge a fee for recovery, and there's no guarantee of success.

To avoid this risk:

  1. Always check if the receiving service requires a memo
  2. Copy both the wallet address and destination tag before sending
  3. Double-check both fields during the transfer process

Cryptocurrencies That Require a Memo or Destination Tag

Not all cryptocurrencies need a memo, but several major ones do—especially those built on networks that support account-based tagging systems. Below are the most common coins that require memos for accurate transfers.

✅ Ripple (XRP)

✅ Binance Coin (BNB) – BEP2 Version

👉 Learn how to avoid common transfer mistakes with memos on major blockchains.

✅ Cosmos (ATOM)

✅ Stellar (XLM)

✅ EOS

✅ Hedera Hashgraph (HBAR)

⚠️ Important: Sending any of these coins without the correct memo can result in lost funds. Always verify memo requirements before initiating a transfer.

How to Find Your Destination Tag

The process of finding your memo varies slightly depending on the platform. Here’s how to locate it on popular services.

On Trust Wallet (for XRP):

  1. Open the Trust Wallet app
  2. Tap on XRP from your asset list
  3. Click Receive
  4. You’ll see both the wallet address and destination tag
  5. Copy both and provide them when sending funds

On Binance (for XRP):

  1. Log in to your Binance account (app or website)
  2. Go to Wallet > Deposit
  3. Search for XRP
  4. Select the network (e.g., Ripple)
  5. The deposit page will display both the address and destination tag
  6. Copy both carefully

Always confirm the required network and memo format before sending.

Frequently Asked Questions (FAQ)

What happens if I send XRP without a destination tag?

If you send XRP to an exchange or wallet that requires a destination tag but omit it, your transaction will be processed on the blockchain—but your funds won’t be credited to your account. The XRP will sit in the platform’s shared wallet, inaccessible until manually recovered by support.

To resolve this:

Do I need a memo for every cryptocurrency?

No. Memos are only required for specific blockchains like XRP, ATOM, XLM, and BEP2 tokens. Bitcoin, Ethereum, USDT (ERC20), and most modern tokens do not use memos—just ensure the wallet address is correct.

Can I use any text as a memo?

No. The memo must match exactly what the receiving platform provides—case-sensitive and character-perfect. Even one wrong digit or letter can lead to lost funds.

Is a memo the same as a transaction note?

Not exactly. A memo is a technical requirement used by the blockchain to route funds. A transaction note is an optional message between users and has no impact on fund delivery.

Where can I see my sent memo after a transaction?

You can view the memo in most blockchain explorers if the network supports it (e.g., XRP Ledger Explorer). Look up your transaction by TXID and check the "Memo" or "Destination Tag" field.

Can I recover funds sent with an incorrect memo?

Possibility depends on the platform. Some exchanges allow recovery if you provide proof of transaction and correct details. Others may not support it at all. Always double-check before sending.

Final Tips for Safe Crypto Transfers

  1. Always verify: Check whether the receiving service requires a memo.
  2. Copy-paste carefully: Never type manually—use copy functions.
  3. Test first: Send a small amount before transferring large sums.
  4. Save records: Keep screenshots of deposit instructions.
  5. Use trusted platforms: Choose exchanges with clear deposit guides.

👉 Ensure your next crypto transfer is secure and successful with accurate destination tags.

By understanding how memos work and which coins require them, you significantly reduce the risk of losing your digital assets. Whether you're sending XRP, ATOM, or BNB, taking a few extra seconds to include the correct identifier can save hours—or even permanent loss—down the line.

Stay safe, verify every detail, and make informed transfers in the evolving world of cryptocurrency.