What is a Destination Tag/Memo?
A Destination Tag/Memo is an additional address feature necessary for identifying a transaction recipient beyond a wallet address.
Why is this needed?
For these types of cryptocurrencies, most centralized exchanges (like Coinbase) 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.
Example: The address you send one of these cryptocurrencies to can be equated to an apartment building address. The Tag/Memo identifies which specific apartment you live in, in the apartment building.
When is a Tag/Memo not required?
The only exception to the requirement to include the destination tag is when sending to a privately controlled cryptocurrency storage place or device.
A private wallet is one which the individual fully controls (has custody of) both the public and private keys. Your Coinbase.com account is not a private wallet. Examples of a private wallet include (but are not limited to):
Desktop: wallets downloaded and installed on a PC or laptop
Hardware: wallets stored on a hardware device like a USB, and are stored offline
Warning: if you are uncertain about whether you are sending to a public or a private wallet, please contact Coinbase support.
Using a private wallet to send crypto that uses Destination Tag technology
If you are sending cryptocurrency that uses Destination Tag technology to Coinbase, you must input a correct Tag/Memo.
Both an address and a tag/memo are required to receive cryptocurrency. If you send funds without a tag/memo or with an incorrect Tag/Memo, your funds cannot be credited to your account.
If you are sending cryptocurrency off of Coinbase to a private/personal wallet, a tag/memo may not be required.
Which cryptocurrencies use Destination Tag technology?
The following cryptocurrencies supported on Coinbase utilize destination tag technology:
Do I need to include a Destination Tag or Memo when transacting with these currencies?
Yes. The Tag/Memo is mandatory for transactions for cryptocurrencies that use this technology. You must put in a correct Tag/Memo when receiving/depositing these funds into Coinbase.
For instructions on how to to find or use a destination tag on Coinbase, go to our help page.
What if I forget to include my destination tag?
If a destination tag is required and you forget to include it, or you include an incorrect tag, the funds may be lost.