A Memo or Destination Tag is an additional address property (numeric and/or string) that allows identifying the transfer recipient behind XRP/XLM/ATOM address on a centralized exchange.
Which cryptocurrencies use the Tag feature in Ledger Live?
The following assets are using this tag system in Ledger Live:
|XRP (XRP)||Destination Tag||Only numbers|
|Stellar (XLM)||Memo||String and/or numbers|
|Cosmos (ATOM)||Memo||Only numbers|
A Memo/Destination Tag is required when sending your coins to a centralized exchange (for example Coinbase). Many exchanges are using only one or just a few receiving addresses for the deposits. Therefore, they need a tag/memo to determine to which account they should credit the received funds.
So it is critical to add a tag when sending your funds from your Ledger wallet to a crypto exchange if you want the exchange to credit your funds correctly.
To add a Memo/Destination tag when sending to an exchange, enter the Tag given by the exchange in the Tag field in the Send window:
When you are sending XRP/XLM/ATOM from an exchange to your address obtained in Ledger Live, you are not required to put a specific tag. Since the address is controlled by you, the funds in Ledger Live will appear on your address automatically.
Some exchanges may still require inserting a tag while withdrawing the assets.
In that case, you can pick any tag, for example, a random number from 0 to 4294967295 without any specific number being necessary to receive your funds.
In this situation, the exchange still receives your assets and has them at their deposit address. However, they won’t be able to identify and assign the transaction to your exchange’s account.
As transactions on the blockchain can’t be canceled, Ledger won’t be able to help you in this situation. Your only solution is to contact the exchange’s support and assist them in identifying your deposit transfer.