Trading cryptocurrencies has become commonplace thanks to the number of different exchanges that have popped up online, allowing users to buy, sell and trade crypto as and when they like.
WazirX is one of India’s most popular crypto exchanges, making the entire crypto trading process relatively easy to follow. However, for those who are new to this, there are still many confusing things.
In this article, we’re looking at what is Memo in WazirX is and why is it essential when transferring funds.
Also read: How to delete WazirX account?
What is a Memo?
A memo, also known as a destination tag, is an additional identifier used when transferring funds from a decentralised crypto wallet to a centralised exchange like WazirX.
Since cryptocurrencies are decentralised, they only have wallet addresses that serve as payment addresses. When working on a centralised platform like WazirX, a memo helps determine which individual user gets credit from a particular transaction. If you enter the wrong memo or destination tag, the transaction can be credited to someone else, or your funds might get locked out.
If you are withdrawing Ripple (XRP), Stellar (XLM) or EOS, you’ll be asked to enter your destination address and your destination or memo tag. You’ll find this from the receiving wallet or exchange in this case.
When is a Memo not needed?
A memo or destination tag isn’t required when sending funds to a privately owned crypto wallet or device. A private wallet has its wallet address that only a single individual has control over, including the public and private keys or a seed phrase.
Decentralised wallets like MetaMask, Trust Wallet or CoinBase all assign individual addresses to your crypto wallet, making the address itself the only requirement for transferring funds back and forth.
Remember that your WazirX wallet doesn’t work the same way because WazirX itself is a centralised exchange, and you may need to enter your destination or memo tag when receiving funds in your WazirX account or wallet.
Also read: Opensea vs Rarible vs Mintable: 4 key differences
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