Term
Destination tag (memo)
A destination tag (also called memo or payment ID on some chains) is a numeric identifier attached to a transfer on chains where many users share a single deposit address — the tag routes the deposit to the right individual account. Required by XRP, Stellar, Cosmos, and others.
On chains like XRP, Stellar, Cosmos, EOS, and BNB Beacon Chain, exchanges typically share a single on-chain deposit address for many users. To route incoming deposits to the right individual account, the exchange requires senders to attach a per-user identifier — called a "destination tag" on XRP, "memo" on Stellar and Cosmos, "payment ID" historically on Monero exchanges.
Forgetting the tag is one of the most expensive mistakes in crypto. The funds do arrive at the exchange's address — but the exchange has no way to know which user they belong to. Recovery is usually possible only through support, sometimes for a fee, and sometimes not at all.
When you're withdrawing to an exchange address, the exchange's deposit page will make it clear if a tag is required. Set it exactly as shown, and double-check on-device if you're using a hardware wallet. When sending to a self-custodial wallet address, no tag is needed — the address itself identifies the recipient uniquely.
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