Destination Tag: Explained

Elizabeth Wright
| Editor:
June 21, 2023
1 min read


Unlike regular crypto, altcoins like XRP (Ripple), Stellar (mentioned in top 10 altcoin to watch) and Monero (XMR) have some non-obvious but very important caveats, when it comes to coin management. To control these assets fully, you need to get familiar with some nuances.

What is Destination Tag?

Destination Tag is a technology that defines the specific recipient of the transaction.
You can notice that you have the same XRP address as the other user on the exchange service. It happens since exchanges often use a one XRP address for all their XRP traders. The only difference is the Destination Tag, a short complimentary code piece that assigns your transaction to a certain account.

The Destination Tag is mandatory for the overwhelming majority of transactions. Once you set random numbers or inappropriate values instead of the required combination, you’ll lose your funds. Either the funds will be sent to any other user having that combination as the tag, or to the exchange storage as an unassigned transaction.

The Destination Tag purpose is identification transaction recipient.

It’s like the number of rooms. If you live in the same building, you’ll need to use exactly your room number. If you live in a private house, you won’t need one.

How to use Destination Tag?

The Destination Tag is not required if you use your own personal address. Atomic Wallet provides every user with their own wallet address. However, when it comes to exchanging your coins using centralized services, the Destination Tag becomes mandatory.

What is a unique wallet address?

Unique address or fee for registrations is a special feature for Ripple and Stellar. You need to pay 20 XRP or 1 XLM for address registration in the blockchain. This will be an unspendable balance which is a fee to prevent the whole network from spam attacks. In other cryptocurrencies you don’t need to pay for address registration, except for EOS

  • In Ripple Destination Tag can be shown in the address after the «?dt=».
    As like as: «rw7AxoYRb5MyRf3oRjSVPtgsQYQLp6rqGn?dt=1234567890»
  • In Stellar the Destination Tag is called «Memo ID»
  • In Monero Destination Tag is called «Payment ID»

Destination Tag free

If you want to use the custody-free wallet for Ripple, Stellar, Monero, other top coins and all of the tokens — download and install Atomic Wallet, the first multi-asset wallet with build-in Atomic Swap DEX. You’ll have your own address for all of the coins and you will be Destination Tag free.

When receiving cryptos, just leave the “Destination tag” field empty. If filling out the field is mandatory, just put random numbers here. You’ll get the money anyway. And when sending coins to someone else, just input the Destination Tag of a recipient.

Main Rule: Ripple — 20 XRP/ Stellar 1 XLM

Bear in mind minimum deposit requirements for any custody-free wallets:

  • 20 XRP is a non-refundable deposit to activate new address.
    Any other custody-free Ripple wallet with a unique address will ask you for it.
  • 1 XLM is a non-refundable deposit to activate new address.
  • XMR doesn’t require any non-refundable deposit.

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