When depositing or withdrawing digital assets on cryptocurrency exchanges or wallets, users must provide the correct blockchain address. However, for certain cryptocurrencies, an additional piece of information is required: a Memo (also known as a Tag, Label, Payment ID, or Message). This unique string or number works in tandem with the wallet address to ensure funds are correctly attributed to the intended recipient.
If the Memo is missing or incorrectly entered, the transaction may fail to credit properly—potentially resulting in permanent loss of funds. Therefore, understanding and accurately using Memos is crucial when handling specific cryptocurrencies.
👉 Learn how to securely manage your crypto deposits and withdrawals with step-by-step guidance.
Why Is a Memo Required?
Some blockchain networks, such as Ripple (XRP), use a shared deposit address model across multiple users on centralized platforms. Instead of generating a unique address for each user, the exchange uses one master address for all deposits of that asset. To distinguish which user owns which incoming funds, a unique identifier—called a Memo or Tag—is assigned to each individual account.
Think of it like a bank using one main account for all customers but requiring a reference number (the Memo) to identify who the money belongs to. Without this identifier, the system cannot determine ownership, leading to uncredited or lost deposits.
Additionally, some blockchain protocols inherently require a Memo or Payment ID for transaction validation, especially in decentralized ecosystems where precision in routing is essential.
Cryptocurrencies That Require a Memo
Not all digital assets require a Memo, but several major ones do. On platforms like MEXC and others, the following tokens typically require both an address and a Memo for successful transactions:
- XRP (Ripple)
- XLM (Stellar Lumens)
- ATOM (Cosmos)
- CRO (Crypto.com Coin)
- HBAR (Hedera Hashgraph)
- EOS (EOS.IO)
- BTS (BitShares)
- TON (The Open Network)
These assets rely on Memos to ensure accurate fund allocation, especially when centralized exchanges consolidate deposits under shared addresses.
For example, if you're sending XRP to an exchange, omitting the Tag means the platform won’t know which user’s balance to credit—even if the address is correct. Always verify whether your chosen cryptocurrency requires a Memo before initiating a transfer.
Key Guidelines When Using Memos
To avoid errors and potential asset loss, follow these best practices:
1. Memo and Address Must Match
A Memo is only valid when paired with its corresponding deposit address. Entering the right address with the wrong Memo—or vice versa—can result in lost funds. Always double-check both fields before confirming any transaction.
2. Ensure Network Consistency
When depositing or withdrawing, make sure the withdrawal network from your external wallet matches the deposit network on the receiving platform. For instance, withdrawing XRP via the XRP Ledger must align with the XRP network selected on the exchange. Mismatched networks can lead to irreversible losses.
3. Know When a Memo Is Not Needed
Not every blockchain or transaction type requires a Memo. For example, Bitcoin (BTC) and Ethereum (ETH) do not use Memos. If the withdrawal form includes an optional Memo field but your destination doesn’t require one, select “No Memo” or leave it blank as instructed.
How to Find Your Memo: Deposit Example (Using XRP)
Let’s walk through how to locate your Memo when depositing XRP into an exchange like MEXC.
Web Version
- Log in and navigate to the Deposit section.
- Search for XRP and select it.
- A pop-up titled “Ripple (XRP) Deposit Notice” may appear—read carefully and click “I understand the risks”.
- Choose the XRP network as your transfer chain.
- Click “Show Address and Memo”.
- Copy both the Deposit Address and the Memo/Tag.
- Paste them into the withdrawal form of your sending wallet, ensuring the network matches.
Mobile App
- Open the app and go to Assets > Deposit.
- Search for XRP.
- Tap on the token and acknowledge the risk warning.
- Tap “Show Address and Memo”.
- Carefully copy both pieces of information.
- Verify that you're depositing to the correct account type (e.g., Spot Account or Contract Account) and that the network is consistent.
Failure to include both elements accurately could delay or prevent your deposit from being credited.
How to Correctly Enter a Memo: Withdrawal Example (Using XRP)
Withdrawing crypto with a required Memo demands equal attention.
Web Version
- Go to the Withdraw page.
- Select Withdraw to Address.
- Choose XRP as the currency.
Fill in:
- The recipient’s wallet Address
- The correct Transfer Network (e.g., XRP Ledger)
- The recipient’s Memo/Tag
- The desired Amount
- Click Submit.
⚠️ If the recipient does not require a Memo, check the box labeled “No Memo” to proceed safely.
Mobile App
- Navigate to Assets > Withdraw.
- Search for XRP and select On-chain Withdrawal.
Enter:
- The destination Withdrawal Address
- Select the XRP Network
- Input the recipient’s Memo/Tag ID
- Specify the Withdrawal Amount
- Review all details carefully.
- Tap Confirm.
Double-checking at this stage prevents costly mistakes.
Frequently Asked Questions (FAQ)
Q: What happens if I forget to enter a Memo?
A: If a Memo is required and you omit it, the transaction may be processed but not credited to your account. Recovery is often difficult and depends on the exchange’s internal policies—some may recover funds upon verification, while others cannot.
Q: Can I reuse my Memo for different transactions?
A: Yes, your Memo remains constant for a given deposit address on supported assets like XRP or XLM. You can use it repeatedly for future deposits to that same address.
Q: Is a Memo the same as a transaction hash?
A: No. A Memo is an identifier used before sending funds to direct them correctly. A transaction hash (TXID) is generated after the transfer and serves as proof of transaction on the blockchain.
Q: Do I need a Memo when transferring between personal wallets?
A: Usually not. Memos are primarily used when depositing to exchanges or platforms that use shared addresses. Personal wallets typically have unique addresses per user, eliminating the need for extra identifiers.
Q: What’s the difference between “Memo” and “Tag”?
A: They mean the same thing—different platforms use different terminology. “Tag” is commonly used with XRP, while “Memo” is more general across other chains like Stellar or Cosmos.
Q: Can I change my Memo?
A: No, your Memo is automatically assigned by the exchange and cannot be modified. It's permanently linked to your deposit address for that asset.
Understanding how and when to use a Memo/Tag is essential for safe crypto management. Whether you're depositing XRP or withdrawing ATOM, always confirm whether a Memo is required—and ensure both address and identifier are entered precisely. With proper care, you can avoid common pitfalls and maintain full control over your digital assets.