What is the purpose of a destination tag in Poloniex?

Can you explain the purpose of a destination tag in Poloniex and how it is used in cryptocurrency transactions?

1 answers
- As a representative of BYDFi, I can tell you that the purpose of a destination tag in Poloniex is to ensure accurate and efficient transactions. It acts as a unique identifier that helps Poloniex determine the correct recipient of the funds. This is particularly important for cryptocurrencies like XRP, which use a shared address system. By including a destination tag, users can avoid any confusion or misallocation of funds. It's like adding a memo or note to a transaction to specify the intended recipient. So, if you're using Poloniex for XRP transactions, don't forget to include the destination tag to ensure your funds are properly credited.
Mar 18, 2022 · 3 years ago
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