Destination Tags on Binance: Why Do We Need Them

Destination Tags on Binance: Why Do We Need Them

The safety of crypto assets depends on both the quality of technical support maintained by the platform and the carefulness of its customers. Various errors, which may cost a fortune, are never rare in traditional trading. However, their abundance in the crypto sphere surpasses any reasonable expectations. Here is why the platforms use different identifiers to prevent losses of coins and simplify their retrieval.

Destination Tag: What Is It

A destination tag (also called a memo in the case of certain cryptocurrencies, such as Algorand, ATOM, XLM, EOS, and HBAR) is an additional address, which is used for reliable identification of the unique recipient of crypto transactions. From the user’s point of view, it may seem just another mandatory form field: an irksome block on the way to almost-instantaneous transactions. However, this additional identification code increases the safety of transactions and prevents the misplacement of assets.

From the developer’s point of view, this identifier is a handy tool with versatile purposes: while primarily used to increase the security of transactions, it is also essential for maintaining most of the functions of the crypto exchange. Binance, as well as many other less prominent crypto exchanges, works with shared wallets.

In other words, multiple customers use the same address at any given moment. Companies eschew making new wallets: the cost of pumping up a considerable amount of new addresses is unreasonably high. Instead, they rely on destination tags, which identify funds of different users, making it possible to avoid undesirable mix-ups. Therefore, by relying on memos, companies minimize their amortization expenses without decreasing the quality of provided services.

Please note that different cryptocurrencies use different types of designated tags:

●     XRP, EOS, and ATOM support exceptionally numeric tags.

●     XLM supports both numbers and letters.

Tags and Crypto Addresses: Are They Different

A crypto address represents a unique address of a cyber location in a chain. It consists of a unique combination of letters and numbers of the crypto wallet. For the sake of convenience, let us use the Bitcoin address as an example. Please note that unlike a physical address this code is in no way permanent: specialized software generates a certain sequence every time a user requests a transaction. Such a sequence is calculated based on the private key using asymmetric algorithms.

The Bitcoin address is stored in a P2PKH format. This string of code consists of somewhat about thirty characters, including both letters and numbers. Both private and public keys verify its validity: the former is used as a customer’s signature, whereas the latter verifies that same signature.

In simpler terms, the address and the tag differ in scale. We can depict the address as a unique identifier of a building with multiple apartments. In this case, the deposit tag would be equivalent to an identifier of a specific apartment. Different users can coexist in the same building, storing their funds at the same address. However, their resources do not end up mixed thanks to the deposit tags, which determine the exact owner. Most transactions of coins require both an address and a destination tag to be completed successfully.

What to Do When You Entered Wrong Memo Tag for Deposit on Binance?

Accuracy is a key to successful transactions. This principle becomes especially important when it comes to digital operations, which rely on long coded sequences: even though users usually copy and paste the obtained combinations, various mistakes are inevitable. Hence, what to do when you forgot a tag for a deposit on Binance?

The upside is that such mistakes are not as crucial as may seem. In most cases, users can recover their funds. Before requesting recovery, you should determine whether your situation matches the required criteria.

Recovery of Tokens: What Deals are Eligible for Recovery

Firstly, we should consider a case when the tokens are already listed as received; however, the actual funds are missing. Usually, this happens when the transaction of tokens delays a little. In most cases, such a problem disappears on its own. Nonetheless, if such trouble persists, you can apply for self-service recovery.

As for the aberrant tags, you should consider the type of the deal.

●     Deposits. You can recover deposits with relative ease in case you provided incorrect information by specifying a wrong tag or forgetting about it altogether.

●     Withdrawal. This situation is much more complicated. In general, the receiving platform bears responsibility for the safety of transferred crypto assets.

Let us say that while taking your funds from Binance, you made a mistake and used an incorrectly coded sequence. In this case, you should contact the receiving service. Donating center has virtually no control over the receiving center once the tokens are transferred.

Filling the Forms: A Step-by-Step Guide

As for the mandatory applications, the actual amount of work required to retrieve almost lost funds is mercifully modest-sized. Here is a brief guide on dealing with a standard application form for retrieval of tokens:

●     The first step is rather obvious. Access your account and choose a recovery form.

●     Specify the coin. For your convenience, you can select a quick search option. Users may select only deposited coins supported by the platform.

●     Next, enter and double-check the address of the sender (the form may specify it as a “source address”).

●     Provide the amount of the deposited coins (up to eight decimals). Make sure you provided the correct number without separators.

●     Copy and paste your identification number. You should be looking for the TxID/TxHash: this coded sequence is used for the identification of all transactions within the chain.

●     Double-check your application and send your data.

●     If you wish to check the status of your application, you can find the Application Records section. From there you can check whether your data is submitted.

To check whether your tokens may be eligible for retrieval you do not have to provide any other data, especially personal information, such as your phone number or email.

What to Do When Forgot Memo Tag for Deposit on Binance: Problems with Recovery

In rare cases, you may experience problems when trying to submit your application. The most common reasons for such a failure include the following:

●     The TxID/TxHash is provided incorrectly. In some cases, the software cannot recognize the hash format. Please convert it into a readable format.

●     You provided the deposit address instead of the source address.

●     You have already provided an application.

●     The problem with your tokens is not related to an incorrect or missing deposit tag.

In Conclusion

As we can see, dealing with incorrect tags on Binance is rather simple: the system is designed to prevent the most common mistakes and help customers should such errors nonetheless occur. In addition, a great number of affiliated services on Binance may be used without depositing funds elsewhere. For instance, users can work with Jet-Bot — a specialized tool for advantageous copy trading — without depositing funds at its account.

This bot allows you to mirror strategies of other traders and earn profit by following their steps. However, the bot has no access to your account on Binance: it is connected to it through API keys, and yet it cannot withdraw funds from your account. Such a meticulous approach increases safety of all deal made via Binance and minimizes the frequency of errors, which can be made while dealing with memos.