When sending certain cryptocurrencies to public wallets (such as Wirex where you don’t have custody of your public and private keys) you will need to include a Destination Tag or Memo. This is necessary to ensure that the funds are credited to the correct account on the specific network.
In this article, we will explain what Destination Tags and Memos are, their significance in specific cryptocurrency networks, and how to use them when sending cryptocurrencies.
What is a Destination Tag or Memo?
A Destination Tag or Memo is a unique identifier used to differentiate between transactions to the same recipient address on the same cryptocurrency network. For instance, for XRP (Ripple) and XLM(Stellar), a single address can be used by multiple users.
Why are Destination Tags and Memos necessary?
Including a Destination Tag or Memo is essential to ensure that the funds are credited to the intended account on the specific cryptocurrency network. Without a Destination Tag or Memo, it can be difficult for the recipient to identify which transaction the funds are associated with, particularly if multiple transactions are received at the same time.
Using a Destination Tag or Memo also helps to ensure that the transaction is processed quickly and efficiently. By providing a unique identifier, the recipient can easily identify and credit the funds to your account.
How to use Destination Tags and Memos
It's important to note that when receiving funds via Wirex, you are required to provide the crypto address with a Destination Tag/Memo.
When sending cryptocurrencies that require a Destination Tag or Memo, you will need to enter this information in the transaction details. The Destination Tag or Memo is typically a unique string of alphanumeric characters that can be found in the recipient's account information on the specific cryptocurrency network.
While a Destination Tag or Memo is optional when sending funds via Wirex, it's crucial to ensure that the recipient does not require it. To avoid any delays or loss of funds, it's recommended that you verify with the recipient beforehand if they need a Destination Tag or Memo. If you are unsure, you can check the network's documentation or contact the recipient.
It's crucial to double-check that you have entered the correct Destination Tag or Memo before sending the transaction to avoid the loss of your funds.