common-close-0
BYDFi
Trade wherever you are!

What is the purpose of a withdrawal tag for XRP on Binance?

avatarRiskmanDec 26, 2021 · 3 years ago3 answers

Can you explain the purpose of a withdrawal tag for XRP on Binance? Why is it required and how does it affect the transaction?

What is the purpose of a withdrawal tag for XRP on Binance?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    The withdrawal tag for XRP on Binance is a unique identifier that ensures your XRP deposit is credited to the correct account. XRP transactions require both a destination tag and an address. The destination tag is used to differentiate between multiple users depositing XRP to the same address. It acts as a memo or reference number, allowing Binance to allocate the funds to the correct user's account.
  • avatarDec 26, 2021 · 3 years ago
    When you withdraw XRP from Binance, you may be asked to provide a destination tag. This is because some exchanges and wallets use a shared address for all users, and the destination tag is necessary to identify your specific account. It's important to include the correct destination tag when making a withdrawal, as failing to do so may result in the funds being lost or credited to the wrong account.
  • avatarDec 26, 2021 · 3 years ago
    The withdrawal tag for XRP on Binance serves as an additional security measure to ensure the accuracy of transactions. It helps prevent funds from being sent to the wrong account and provides a way for Binance to track and allocate deposits accurately. It's important to note that not all cryptocurrencies require a withdrawal tag, but for XRP on Binance, it is mandatory to include the destination tag when making a withdrawal.