What is a Destination Tag/Memo?
Destination tags are a second layer of unique identification codes used by cryptocurrencies (e.g. Stellar, EOS, and XRP) to accurately identify the receiver of a transaction. Most transactions with these currencies require both an address and a destination tag to be completed successfully. A Destination Tag/Memo is also known as an additional address and is often necessary for identifying a transaction recipient beyond a wallet address.
Why do I need to use them?
For these types of cryptocurrencies, most centralized exchanges use one address for all traders of cryptocurrencies that use Destination Tag technology.
Therefore, a Tag/Memo is used to determine what actual individual account a given transaction should be assigned and credited to.
What if I'm unsure if I need a destination tag?
You can locate the Tag or memo ID along with the deposit wallet address, or visit the wallet provider's FAQ. If the external wallet address doesn't generate any memos or tags, you can enter "000000" during your CoinSmart withdrawal to bypass this issue.
Also, you can complete a test withdrawal by sending a very small amount without a tag. If the transaction succeeds, than you can attempt to send a larger amount. If it does not, that indicates that a tag is required for the transaction.
At the moment, CoinSmart requires the Memo ID for XLM and EOS only.
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