XRP Wallet: Base Reserve, Destination Tags and Sending XRP

How XRP Ledger addresses work

Your XRP address is a classic address: it starts with a lowercase r, runs 25 to 35 characters and uses the ledger's own base58 alphabet with a checksum. Keylo derives it from your recovery phrase on m/44'/144'/0'/0/0 using a secp256k1 key, the path most XRP wallets use for 12- or 24-word phrases. Importing the same phrase elsewhere on that path gives the same r address.

You may also meet X-addresses, a longer format starting with X that packs a classic address and a destination tag into one string. They exist to stop people forgetting tags. If a service shows you an X-address and you want to be certain, ask for its classic r address and tag separately, and enter both. Unlike most chains, the XRP Ledger also requires every address to be funded before it exists, which is the next topic.

Why do I need XRP to activate an address?

Every account on the XRP Ledger must hold a minimum balance called the base reserve, currently 1 XRP. A brand-new address does not exist until a payment of at least 1 XRP creates it. If someone tries to send less to an unfunded address, the payment fails and only the tiny network fee is spent. The reserve protects the shared ledger from being filled with millions of empty accounts.

The reserve stays locked in your account, so you can never send your last 1 XRP. Each object you own on the ledger, such as a trust line, offer or escrow, adds an owner reserve of 0.2 XRP on top. Validators can vote to change both amounts, and they have lowered them over the years. The ledger will not let any payment dip into the reserved amount, so only the balance above it is spendable.

How to create an XRP wallet with Keylo

Some XRP wallets created years ago used a family seed starting with s rather than a word phrase. Keylo imports 12- or 24-word phrases only, so if your old wallet has a family seed, move your XRP by sending it from that wallet to your new Keylo address instead of trying to import it.

1. 1

   Visit Keylo in any up-to-date browser, on mobile or desktop.

2. 2

   Create an account with your name, email, phone and password, and confirm your email.

3. 3

   The browser creates your 12-word recovery phrase and encrypts it under your password before Keylo stores the encrypted copy.

4. 4

   Open XRP Ledger in your assets. Your r address appears with the network name beside it.

5. 5

   Back up the phrase: go to Settings, re-enter your password, reveal the words and write them down offline.

6. 6

   Fund the address with more than 1 XRP to activate it.

How to receive XRP

Your Keylo address belongs to you alone, so people paying you do not need to add a destination tag. If an exchange's withdrawal form insists on a tag anyway, any number will do; it will not affect a payment to your personal address. Tags only matter when the receiving address is shared by many customers, as exchange deposit addresses are.

1. 1

   Open XRP Ledger in Keylo and tap Receive.

2. 2

   Copy your r address or show the QR code.

3. 3

   Ask the sender to withdraw on the XRP Ledger network. If this is a new address, make sure they send more than 1 XRP.

4. 4

   Watch Activity. Payments usually appear within a few seconds, with a link to the XRPL Explorer.

What is a destination tag and when do I need one?

A destination tag is a whole number, up to 4,294,967,295, attached to a payment. Exchanges and custodial services receive XRP for thousands of customers at one shared r address, and the tag tells them which customer a deposit belongs to. If you send to an exchange without its tag, or with the wrong one, the XRP still arrives at the exchange, but it cannot credit your account automatically.

Recovering an untagged deposit usually means a support ticket, proof of the transaction and a wait. Some exchanges turn on a ledger setting that rejects any payment without a tag, which protects you; many do not. So whenever you send XRP to an exchange, copy the tag from its deposit page every time, because some services issue new tags.

How to send XRP

A validated XRP payment cannot be reversed. If you are sending to a brand-new address that has never been funded, send at least 1 XRP or the payment will be refused. If you are unsure whether a destination needs a tag, check its deposit instructions before sending; adding a tag to a personal address does no harm, but leaving one off an exchange deposit causes delays.

1. 1

   Open XRP Ledger and tap Send.

2. 2

   Paste the r address or scan the QR code. Keylo validates the checksum.

3. 3

   If you are sending to an exchange or custodial service, enter its destination tag in the tag field exactly as shown.

4. 4

   Enter the amount or tap Max. Only the balance above your reserve can be sent.

5. 5

   Review the summary: recipient, destination tag, exact amount and network fee.

6. 6

   Confirm. Keylo signs in your browser, and the payment is usually final within seconds.

XRP fees explained

The XRP Ledger's fee is tiny and simple. A standard payment costs at least 10 drops, where one drop is 0.000001 XRP. That fee is not paid to anyone: it is destroyed, permanently reducing the supply of XRP, which makes spam expensive without rewarding validators for including transactions.

When the network is busy, the minimum fee for getting into the current ledger rises for a short time, and transactions offering more are processed first. Keylo shows the network fee in the summary before you confirm. In practice it rarely exceeds a fraction of a thousandth of an XRP, and Keylo adds no fee of its own to a normal send.

Swap XRP and practise on XRP Testnet

Keylo offers in-wallet swaps for XRP through THORChain, which exchanges native XRP for native coins on other chains, such as BTC, ETH or TRX, without wrapped tokens. You will see the route, the expected payout, a guaranteed minimum and the full fee breakdown, including any small Keylo service fee, before anything is signed. You can follow the swap to completion, and if the route cannot finish, THORChain refunds the XRP to your sending wallet. Swap and bridge explains more.

To practise without risk, turn on Testnet mode in Settings. Keylo adds XRP Testnet, a separate ledger where faucet XRP has no value. You can activate a test address, try destination tags and watch the reserve in action before handling real XRP.

XRP safety tips

• Always include the exchange's destination tag when depositing, and double-check it before confirming.
• Treat airdrops and giveaways promising free XRP as scams, especially those asking you to send XRP first or enter your phrase on a website.
• Never share your recovery phrase or family seed. Anyone who has it can drain the account immediately.
• Remember that the first 1 XRP in a new address is locked as reserve; it is not lost, and it is not a fee someone can refund.
• Turn on two-factor authentication and an anti-phishing code, explained on Keylo security.
• Copy addresses from the original source and compare them in full before sending.

Frequently asked questions