WHAT IS THE "MEMO" ( IN CRYPTOCURRENCIES)?

Question

The Memo, also known as Tag or Destination ID, is a numeric or alphanumeric code used 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 or platform.

Why is a Memo necessary?

Some cryptocurrencies, such as XRP (Ripple), XLM (Stellar) or BNB (BNB Chain), allow users to share a single wallet address on platforms like exchanges.

However, to differentiate between the various users who use 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 could be lost or require complicated processes for recovery.

When is a Memo used?

It is used when sending cryptocurrencies to centralized exchanges (CEX) like Gate.

It is mandatory on certain occasions for certain networks and coins such as:

XRP (Ripple): requires a tag.

XLM (Stellar): needs a memo.

BNB (BNB Chain) on the BNB network: Use Memo.

EOS: use Memo as the 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: rDIRECCIONejemplo987654

Memo/Label: 87654321

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:

Let's imagine that you want to send XRP from Gate to another exchange.

The process would be the following:

Open the destination account on the exchange and select "Deposit XRP"
The platform will provide you with two data points:

Deposit address.

Label/Memo (example: 87654321).

When withdrawing from Gate, copy both data (address and Memo) and enter them into the corresponding fields.

Important: what happens if you forget the Memo?

If you forget to enter the Memo or the 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.

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