A Memo (also known as a Tag or Destination ID) is a numeric or alphanumeric code used when transacting with cryptocurrencies on specific networks.
Its main function is to uniquely identify the recipient or assign a transaction to a specific account within an exchange or platform.
Why is a Memo needed?
Some cryptocurrencies, such as XRP (Ripple), XLM (Stellar), or BNB (Binance Coin), allow users to have a single shared wallet address across platforms such as exchanges.
However, to distinguish between different users using the same address, a Memo or Tag is added to the transaction.
If you send a transaction without the correct Memo, the exchange will not be able to identify the recipient, and your funds may be lost or require complicated processes to recover.
When is a Memo used?
By sending cryptocurrencies to centralized exchanges (CEX) such as Binance, KuCoin or Coinbase.
It is mandatory in certain occasions for certain networks, and currencies such as:
XRP (Ripple): Requires a Tag.
XLM (Stellar): Needs a Memo.
BNB (Binance Coin) on the BNB Chain: Usa Memo.
EOS: Uses Memo the target ID.
Where to find the Memo?
1. In your exchange account:
When you choose to Deposit a coin such as 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, there will be a specific field to enter the Memo in addition to the destination address.
3. Confirmation in external wallets:
Some wallets like Trust Wallet or Ledger Live will also show you if you need to add a Memo when sending funds.
Practical example:
Suppose you want to send XRP from Binance to another exchange.
The process is like this:
You open the destination account on the exchange and select "Deposit XRP"
The platform will give you two pieces of data:
Deposit address.
Tag/Memo (example: 12345678).
When making a withdrawal from Binance, you copy both data (address and Memo) and enter them in the corresponding fields.
Important: What happens if you forget the Memo?
If you forget to enter the Memo or Tag:
The transaction will be sent, but the exchange will not be able to identify the recipient.
You will need to contact the exchange support to try to recover the funds.
This process is often complicated and does not always guarantee recovery.
* Memo is essential for transactions with coins like XRP, XLM and BNB when sending them to centralized exchanges *
