Quickex team
January 9, 2024
~6 min read

What is Memo In Crypto? Full Guide from Quickex

When sending a deposit of XRP, ATOM, EOS, XEM and some other tokens on the Quickex exchange you need to provide the following information for your deposit: * Your wallet address; * Destination Tag or Memo. Memos and Destination Tags are information that many crypto users ignore, although they play a critical role in the proper recording and processing of transactions. What is Memo in Crypto? A memo in cryptocurrency transfers is a unique short piece of additional information that is fille

What is Memo In Crypto? Full Guide from Quickex

When sending a deposit of XRP, ATOM, EOS, XEM and some other tokens on the Quickex exchange you need to provide the following information for your deposit:

  • Your wallet address;
  • Destination Tag or Memo.

Memos and Destination Tags are information that many crypto users ignore, although they play a critical role in the proper recording and processing of transactions.

What is Memo in Crypto?

A memo in cryptocurrency transfers is a unique short piece of additional information that is filled in as needed when a crypto transaction is executed, typically when transferring crypto tokens or coins to a shared wallet address on an exchange or to a multi-user wallet.

Why is this Necessary?

In most cryptocurrencies, like Bitcoin or Ethereum, each user has a unique address. 

But in some cryptocurrencies like XRP, Stellar, EOS or Cosmos, it works differently. Usually, exchanges use one common address for all their customers.

That's where the need for a "Destination Tag" comes in. When a transaction arrives at the shared address, this tag helps determine who the transaction was intended for so that the transfer can be completed correctly.

We offer a small analogy for understanding:

"Imagine a large mailbox for storing letters, similar to the way exchanges use a single address for cryptocurrencies like XRP. Each email has a "Destination Tag" similar to a signature or stamp, to show who it is intended for in the shared group. This tag helps sort the emails in the shared inbox, ensuring each transaction efficiently gets to the right person."

Key Characteristics of a Memo in Crypto Transfer:

These are the key points that characterize Memo: 

  • Transaction Processing: It's like giving the exchange a heads-up. With the right memo, they know exactly who should get the money. In case you forget about the memo or draft it incorrectly, the exchange will be faced with the problem of where to put your funds, resulting in delays or even loss of money;
  • Types of Memos: Memos can come in different flavors. Some are just numbers, others are a mix of letters and numbers, and sometimes you can even write a short message. The type of memo you use depends on the cryptocurrency and what the exchange needs.

Which Cryptos Require a Memo on Quickex?

Quickex platform requires certain cryptocurrencies to specify a Memo or Destination Tag when making transactions. This is important for accurate processing and crediting the correct account.

Here is the list of cryptocurrencies that require Memo to be specified when transacting on Quickex:

Cryptocurrency

Type

Info

XRP (Ripple)

Numeric Tag

Designed for fast, low-cost transactions, often used by banks and financial institutions.

ATOM (Cosmos)

Numeric Memo

Blockchain technology enabling different blockchains to interact with each other.

EOS (EOS)

Numeric Memo

Focused on decentralized application (dApp) development, known for scalability.

XEM 

(New Economy Movement)

Numeric or Alphanumeric Memo

Offers unique features like multisignature accounts and encrypted messaging.

XLM 

(Stellar Lumens)

Alphanumeric Memo

Aims to facilitate cross-border transactions between any currencies.

CRO 

(Crypto.com Coin)

Memo

Used within the Crypto.com ecosystem for discounts, rewards, and privileges.

LUNC (Terra)

Memo

Part of the Terra ecosystem, used for stabilizing the prices of stablecoins.

Toncoin (TON)

Memo

Developed for fast and secure data exchange and transactions in the Telegram Open Network.

How to Specify a Destination Tag on Quickex?

Now you know what Memo is, let's see how it works on Quickex:

Step 1: To get started, go to the main page of the Quickex exchange and select the desired crypto pair. 

"Let's take the XRP to XLM exchange for an example"

Step 2: Enter the preferred exchange amount, Quickex calculator will automatically generate the exchange rate.

Step 3: Enter the " Destination Address

Step 4 (Important!): Enter Tag / Memo, you can find this tag on the deposit page along with the address to deposit, solely with crypto from the table above. You can also click on "?" to remind yourself of the importance of “Tag / Memo”

Step 5: Agree to the terms and conditions and start the exchange.

When is a Memo not Required?

If you're sending cryptocurrency to a private wallet, you don't need a destination tag or memo. A private wallet is something you have complete control over yourself. You have the keys for it, both public and private. 

Because you have complete control over this type of wallet, the system doesn't need any additional information (a tag or memo) to identify your transaction.

How to Avoid Loss of Funds?

Here are some tips on how to avoid trouble when working with cryptocurrencies that require the use of Memo:

  • Always Check First: Before sending any cryptocurrency, make sure to check if you need to include a memo. You can usually find this information in the help or FAQ section of the exchange you're using;
  • Enter the Memo Correctly: If you do need a memo, be careful to enter it exactly right. Even a small mistake, like a typo, can cause problems just like not including a memo at all;
  • Ask if Not Sure: If you're not sure about whether you need a memo or if you've got it right, it's a good idea to double-check with the person or service you're sending the cryptocurrency to; Important! If you’re not sure whether you need to specify memo or not, contact Quickex support team. We will do our best to help you out. 
  • Keep Records: Always keep a note of your transactions, including any memos you use. This can be really helpful later on, especially if there's a misunderstanding or a need to check something about the transaction.

FAQ

  1. Why do I need Memo?

Memo is used in cryptocurrencies like XRP, EOS, or LUNC to specify who the coins are intended for. Unlike BTC and ETH, where each user has their own unique address, these systems often use one common address for everyone on the exchange. 

So when you send coins, Memo acts as an identifier that points to a specific recipient among all users of that shared address.

  1. What if I sent funds from Quickex without a memo, destination tag or message?

If you have transferred funds from Quickex without including the required Tag / Memo and the funds have not appeared on the intended wallet or exchange, it is important to contact the recipient. 

You must understand that once the funds have left Quickex, our ability to intervene in this process is no longer possible.

Therefore, it is best to contact the owner or support team of the receiving wallet or exchange directly. Provide them with the transaction ID and ask them to help manually confirm and apply your deposit. However, keep in mind that some wallets and exchanges may not have the ability to fix such situations.

  1. What to do to make sure you don't lose money?

To protect your cryptocurrencies such as XRP, XLM, EOS, ATOM, XEM, TON, LUNC, CRO:

  • Be sure to fill out the Memo field when required;
  • Be careful not to make mistakes when transferring;
  1. Where do I find the memo tag and how do I specify it?

At this point, the process will be the same for all cryptocurrencies that require Memo. We will explain in an XRP example. 

Let's imagine you need an XRP Memo tag. 

Step 1: You will need to go to your Exchange.  

Step 2: Find the XRP button. 

Step 3: In the menu of your Ripple you will find the already generated address and code. As XRP Tag.

Result: Using this information you are guaranteed to receive your funds to your wallet after the transaction.

If you need to send funds to another user, check with them in advance for their destination tag. As a rule, the destination tag is entered in the next field to the destination address. 

  1. When Memo is not Required?

Memo is not required when you send cryptocurrency to your personal wallet, which you fully manage. This is because your wallet address is unique and the network recognises it as such. Important! However, still double-check your address before sending because each wallet has different terms and conditions.

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