What is the purpose of a deposit tag on Binance?

3 answers

• Jan 03, 2022 · 3 years ago
  A deposit tag on Binance is a unique identifier that is used to ensure that your cryptocurrency deposit is correctly credited to your account. When you deposit certain cryptocurrencies, such as XRP or XLM, you need to include a deposit tag along with the deposit address. The deposit tag acts as a memo or additional piece of information that helps Binance identify your deposit and allocate it to your account. It is important to include the correct deposit tag when making a deposit to Binance, as failing to do so may result in the loss of your funds.
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• Jan 03, 2022 · 3 years ago
  The purpose of a deposit tag on Binance is to differentiate between multiple deposits made to the same address. Since many users share the same deposit address for certain cryptocurrencies, such as XRP, the deposit tag allows Binance to identify which specific user the deposit belongs to. This helps ensure that each user's deposit is correctly credited to their account. Without the deposit tag, it would be difficult for Binance to accurately allocate deposits and users may experience delays or issues with their transactions.
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• Jan 03, 2022 · 3 years ago
  BYDFi, a digital currency exchange, also utilizes deposit tags for certain cryptocurrencies. When depositing these cryptocurrencies to BYDFi, you need to include a deposit tag along with the deposit address. The deposit tag serves a similar purpose as on Binance, helping BYDFi identify and allocate deposits to the correct user accounts. It is important to double-check the deposit tag when making a deposit to BYDFi to avoid any potential issues with your transaction.
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