XRP and what is this Destination Tag? Explained for Dummies.
Ripple a.k.a XRP is the 3rd biggest coin by market cap, with $17,041,693,292. Just for the last 24h, it had a volume of $1,228,741,852. This by itself is very attractive to many traders, including the first-timers. In this article I will aim to teach the rookie part of the audience and how to transfer XRP from an exchange to a cryptocurrency wallet and vice-versa. Moreover, I will give a simple explanation of what a destination tag is and why you should have one.
What is Destination Tag?
The simple way to describe it is the “place” where your XRP should arrive. Or with other words, imagine an apartment complex. All of the apartments are at the same address, but they have different suite number. Let’s say 2 Tower Bridge Road, Flat 21, London. The address is 2 Tower Bridge Road, at the XRP Destination Tag is Flat 21.
When we turn this into cryptocurrency exchange, it is like, each cryptocurrency exchange has its own XRP address. To be able to separate all of the users that own XRP they have Destination Tags (the flats). So whenever you are withdrawing XRPs to someone’s account on a cryptocurrency exchange, basically you are mentioning the address and then the flat, or exchange’s XRP address and who is the user by setting the Destination Tag.
For make it a little more clear, see the graph below:
So, Users who send the XRP will set the Cryptocurrency Exchange Address and then to whomever user they send the Destination Tag in order for the XRP to arrive in the correct account.
Which wallet to Use to store XRP?
Basically, you can use any wallet that you like. Only one thing to consider is that the cryptocurrency wallet supports XRP. With other words, it has the option to store your XRPs.
For the example case, we are going to use Toast Wallet, but as mentioned you can use any wallet that features XRP.
How to send XRP to a wallet from iCE3X cryptocurrency exchange?
- Login to your account and head to Dashboard
- Check in the middle of your screen: My Balances (There you’ll have all of the assets you are currently having)
- Click on the Withdraw button representing XRP (see the image below)
- The next step will give you three options:
- Amount – how many XRP are you going to send
- Address – you wallet’s address
- Destination Tag
See the image below:
Whenever you are withdrawing to a wallet the “Destination Tag” or just “Tag” can be any 6 digit number. Why this is different from an exchange is because your cryptocurrency wallet has only one unique address? It’s like a house, there is only one house representing the number on the street, not two.
Again, whenever you are withdrawing XRP to a wallet, set the amount you want to send, set the wallet’s address (be very cautious here, not to do mistake), and then set a random 6 digits number. And then click submit.
The next step is shown in the image below:
Let’s explain what we have here. In the first part, it’s brief information about the sender and receiver. However, there are two security layer fields:
- Hash: whenever you click on send (do not fill it with anything), you will receive an e-mail with the information that you should put there. It looks like: Now Copy and paste the line after “Confirmation hash:” to the “Hash” field.
- Enter your code from your 2FA app
- Click Confirm
Those are all the steps you need to follow in order to send XRP from iCE3X cryptocurrency exchange to your wallet.
How to transfer XRPs from my Wallet to iCE3X?
After logging in your iCE3X account head to the Dashboard and click on Deposit button that is representing XRP. When you do that, you’ll get the following screen:
There you will see your XRP address and also the TAG that is representing your account. Now, head to your wallet. In our case our first step looks like this:
After clicking the dollar sign on the bottom/middle, the next window will open.
As you can see, first you are selecting from which account you want to send funds. The next field is about your address. Above we have mentioned where you can get it. Then is the Destination Tag that we are talking about. What currency you are withdrawing – XRP. And the last bit is the amount you want to send. Click Send and you will see the following screen:
Here, everything is straight forward. All the sender and receiver information is listed for confirmation. Set your Passphrase and tap Confirm Payment. Whenever you do that, you will get you XRPs in iCE3X account.
Here is also a video about how this happens:
Commonly asked questions:
- Is the address the same always whenever you are sending to the same cryptocurrency exchange – Yes, it is(but it is a good practice to check the address before making any deposits to your account);
- Does the destination tag matter whenever sending to a cryptocurrency wallet – No, it doesn’t matter;
- Does the destination tag matter whenever sending to cryptocurrency exchange – Yes, it is very important at it determines who will get the cryptos;
- What if I use a custodial wallet – It should not matter as it should have a unique address, not like an exchange or a trading platform;
YouTube video where you can watch how this happens:
Withdrawing and depositing XRP is not something really hard, it just adds one step + to do. We hope this article explains simple enough and also easy to understand. Hit us below with questions if you have any, and let’s get them answered.