I recently encountered a situation where, when transferring XRP to an exchange, I needed to specify not only the address but also some additional code. It turned out that this is a memo — something that seems complicated at first glance but is actually very logical.

A memo is essentially a numeric or alphanumeric identifier added to the transaction. Why is it needed? The thing is, some cryptocurrencies like Ripple, Stellar, or BNB use shared addresses for multiple users on exchanges. To understand who the funds are intended for, this additional code is required — the memo acts as a sort of address label within a single address.

When I first withdrew XLM from my account, the platform showed me two fields: deposit address and tag. I initially thought it was unnecessary, but then I realized — if you send without this code, the exchange simply won't be able to identify who the coins are for, and they might get stuck or lost.

Practically, a memo is required for several main assets. XRP always asks for a tag when transferring. XLM also requires a memo. BNB on the BNB Chain network also needs it. EOS uses a memo as the target identifier. It’s not just for nothing — this system has been working for many years.

When you decide to deposit or withdraw such a coin, it’s straightforward. On the deposit page, they will give you an address and a code, for example, an address like rEXAMPLEAddress123456 and a memo 12345678. When withdrawing funds from your account, you copy both values and enter them into the respective fields. Wallets like Trust Wallet or Ledger Live also indicate whether a memo is needed.

The most important thing — remember that if you forget to include the memo, the transaction will be sent, but the exchange won't be able to understand who it’s for. Later, you'll have to contact support and ask for help in recovery. This is a long process and not always successful. Therefore, before any transfer of XRP, XLM, or BNB to a centralized platform, I always double-check — address and memo.