What is the purpose of a destination tag in Poloniex?

1 answers

• Sunny KunduMar 24, 2024 · a year ago
  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.
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