What Is a Memo or Destination Tag and When Do You Need One?

Some cryptocurrencies ask for one more field besides the wallet address: a memo, a tag or a comment. It may look optional, but for many deposits it decides whether your coins are credited or get stuck. Here is what this field does and how to fill it in correctly.

What a memo or destination tag is

A memo is a short piece of data attached to a transaction. Exchanges and other custodial services often use one shared address for thousands of customers. The address tells the network where to deliver the coins, and the memo tells the service which customer the deposit belongs to.

Different networks use different names for the same idea:

• XRP — destination tag, a number;
• Stellar (XLM) — memo;
• TON — comment, often called a memo by exchanges;
• Cosmos (ATOM) and many Cosmos-based networks — memo;
• EOS and Hedera (HBAR) — memo.

When you need a memo

You need a memo whenever the recipient asks for one. The typical case is a deposit to an exchange, a payment service or another platform that holds funds for its users: its deposit page shows both an address and a memo (tag), and you need to copy both.

A personal wallet where you control the keys usually does not need a memo, because the address belongs only to you. If the wallet shows no memo on its receive screen, you can leave the field empty when sending to it.

What happens if you forget the memo

The transaction still goes through: the network delivers the coins to the shared address. However, the service cannot automatically match the deposit to your account, so your balance does not change. Such deposits can usually be recovered only through support: you will need to confirm the transfer with the transaction hash, and the process can take several days and may involve a fee. Some services do not recover deposits without a memo at all.

A wrong memo is just as risky: the coins may be credited to someone else's account.

How to send coins with a memo safely

1. Copy the address and the memo from the recipient's current deposit page, not from an old screenshot or chat.
2. Paste the memo into the separate Memo, Tag or Comment field, not after the address.
3. Check the network: the memo works only on the network the recipient specified.
4. Before sending a large amount, make a small test transfer and wait until it is credited.
5. Save the transaction hash: it is your proof of payment if something goes wrong.

Memos on Xgram

When you exchange coins that support a memo, Xgram shows a separate tag/memo field next to the recipient address. If you are sending the exchanged coins to an exchange account, enter the memo from that exchange's deposit page there. The same kind of field is available for the refund address.

If the deposit address that Xgram gives you for your exchange comes with a memo, it is shown together with the address, and you confirm that you will include it in the transfer. Send the coins with this memo, otherwise the deposit will not be matched to your exchange automatically.