WHAT IS THE "MEMO" ( IN CRYPTOCURRENCIES)?

The Memo ( also known as Tag or destination ID ) is a numeric or alphanumeric code that we use when making cryptocurrency transactions on specific networks.

Its main function is to uniquely identify the recipient or assign a transaction to a specific account within an exchange platform.

Why do we need a memo?

Some cryptocurrencies like XRP, XLM, or BNB allow multiple users to share the same wallet address on exchange platforms.

To distinguish between us, who use the same address, a Memo or Tag is added to the transaction.

If I send a transaction without the correct Memo, the platform will not be able to identify me as the recipient, and my funds could be lost or require complicated recovery processes.

When is a Memo used?

When sending cryptocurrencies to centralized platforms (CEX).

It is mandatory on certain occasions for certain networks and coins such as: XRP (Ripple): requires a tag. XLM (Stellar): needs a memo. BNB on the BNB chain: Use Memo. EOS: use Memo as destination ID.

Where to find the memo?

1. In your exchange account:

When you choose to deposit a coin like XRP, XLM, or BNB, the platform will show you the deposit address and a unique Memo/Tag. Example: Address: rEXAMPLEAddress123456 Memo/Tag: 12345678

2. On the withdrawal page:

When sending funds from an exchange, in addition to the destination address, there will be a specific field to enter the Memo.

3. Confirmation in external wallets:

Some wallets like Trust Wallet or Ledger Live will also indicate if you need to add a memo when sending funds.

Practical example: Imagine you want to send XRP from one platform to another.

The process is as follows:

• You open the destination account and select “Deposit XRP”
• The platform will provide you with: Deposit address. Tag/Memo (example: 12345678).
• When withdrawing, copy both the (address and Memo) and enter them in the corresponding fields.

What happens if I forget the memo?

If I forget to include the Memo or Tag:

• The transaction will be sent, but the exchange will not be able to identify me as the recipient.
• I will have to contact support to try to recover my funds.
• This process can be complicated and does not always guarantee recovery.

The memo is essential for transactions with coins like XRP, XLM, and BNB when sent to centralized exchanges

Disclaimer: Includes third-party opinions. It is not financial advice. It may include sponsored content.