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Crypto currencies have enabled a new generation of businesses and entrepreneurs with the potential to radically disrupt many markets, which has in turn allowed new investment opportunities.

The laws and rules around cryptocurrency appear to be changing on a monthly basis these days, so it’s critical to have some added assistance when it comes to remaining compliant with your crypto tax requirements.

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Rapidly growing industry requires complicated crypto taxes – Koinly is a web-based tool that provides services catering to this growing market by simplifying the process of keeping track of crypto transactions and eliminating stress associated with monitoring all activities.

Koinly make it easy for you to handle all of your cryptocurrency taxes with the most powerful tax calculation software available.

Currently servicing over 20 tax jurisdictions, including USA. The free version offers basic features while there are also pricing plans tailored towards more frequent users. It supports over 6,000 cryptocurrencies and 350 exchanges, making it a flexible option.

Let’s take a closer look at why Koinly is one of the most recognized names in the crypto tax software market.

Pros

  • Available in over 20 different tax jurisdictions
  • Free plan offers basic features
  • Reports available for a variety of income (staking, airdrops, and defi)
  • Integrates with more than 6,000 cryptocurrencies and 350 exchanges

Cons

  • Crypto payments not available
  • Traders that trade frequently will pay a premium.

What is Koinly?

Koinly is a cryptocurrency-oriented tax reporting tool that can help you determine all of the taxes associated with your crypto activities, as well as teach you how to save money on these tax obligations.

Koinly can support cryptocurrency users in over 20 different nations by enabling them to submit their taxes, and the program can create a comprehensive tax report on their crypto portfolio in less than 20 minutes.

Users may instantly automate their tax calculations by importing trades from exchanges, and capital gains taxes can even be estimated throughout the whole year.

Koinly has helped hundreds of people and companies manage their cryptocurrency tax responsibilities, allowing them to stay legal at all times.

Koinly is the best-known and most trusted crypto tax firm, thanks to its one-of-a-kind combination of sophisticated tools, creative design, and outstanding customer service.

Types of transactions supported on Koinly

Koinly complies with all the applicable tax laws in a host of different countries.

Koinly can create all of the necessary paperwork for you to submit your cryptocurrency taxes. Form 8949, Schedule D is required. Koinly may assist you in preparing form 1040 Schedule D for free if you are a US taxpayer.

Multiple cost-basis methods: You can select between FIFO, LIFO, HIFO, Average Cost, Share Pooling, and Spec ID as your preferred accounting approach. This system is set to the recommended option in your home country by default.

Smart transfer matching: Koinly can detect crypto transfers between your own wallets by using its own AI methods.

Capital gains & margin trading summary: Include a year-end overview of your cryptocurrency taxable gains and income incl. Margin trades, options, and futures.

Income report: Koinly can build a visual statement out of all of your Airdrops, Forks, Staking Rewards, DEFi, and other income operations.

Gifts, donations & losses report: You should be able to simply tag your outgoing payments (which you gave, donated, or otherwise) and receive a nicely formatted report.

Reasons to choose Koinly

Free Account Option: The platform can be used for free to record up to 10,000 transactions and generate capital gains tax predictions. The free account may be used indefinitely to track all of your crypto transactions and activities.

Comprehensive Resources: Koinly offers a wealth of information, including a Tax Calculator and Regional Tax Guides, as well as a list of Tax Consultants and an informative Blog to keep its users up to date.

Complete Tax Reports: This includes your capital gains summary, margin gains, capital gain transactions, end of year balances, asset summary and income. It can be downloaded as a PDF.

Customer Support: With a dedicated support team, an FAQ page that aims to address the most common inquiries, and a Facebook page and Twitter account where they can be reached by email and live chat, this dispensary is on top of its support game.

Compatibility: You needn’t worry about Koinly being compatible with your specific tax situation, either. Koinly’s software supports just about every kind of taxable event associated with cryptocurrency, including income from trades, income from mining, income from renting out property, and more. Koinly keeps you up-to-date on the latest tax events that apply to cryptocurrency and can help you stay compliant with all applicable rules.

Integration: Koinly is a crypto portfolio management program that connects to over 6,000 blockchains, 350 exchanges, and 75 wallets so you can keep track of your transactions on all of them.

As a result, the majority of prominent crypto service providers are compatible, and Koinly also links with crypto lenders such as Nexo, BlockFi, and Compound.

Koinly review: 6 reasons to start using Koinly crypto tax software 1

You can also use the platform to keep track of your portfolios by linking them with the Blockfolio, Delta, and CoinTracking app.

Koinly Price Plans

The platform comes with a variety of plans to meet the needs of crypto traders at various activity levels.

Free: The Free plan allows users to track their trades/transactions, exchange and wallet accounts, and to also obtain a capital gains tax preview. The Free plan also provides access to FIFO and LIFO tax reports and allows you to import data from a wide range of sources.

Hodler: The Hodler account, which costs $49 per year, allows you to produce FIFO and LIFO tax reports as well as worldwide tax reports, comprehensive audit reports, and Form 8949 and Schedule D reports. You can also export to TurboTax and TaxACT; however, you are limited to 100 transactions.

Trader: The Trader account is $99 per year and includes the same set of tools as the Professional account, as well as a 1000 transaction limit. You also get priority assistance when you sign up for this package.

Oracle: The Oracle account costs $179 a year for 3000 transactions and $279 for 10,000 transactions. The Oracle plan allows you to utilize all of Koinly’s features.

As a part of the Oracle plan, customers have access to priority assistance as well as the capacity to create unique reports. The support staff will handle custome/bulk operations and individual files without charge.

To get a better idea of all the options available, you can test Koinly’s software by creating a free account. Koinly supplies quick tutorials for new users so you can get up to speed quickly.

Get $25 when you create a Koinly account here

How Safe is Koinly?

The platform uses security measures at all levels, from the physical through the application and even into the data layer. This enables Koinly to maintain an almost 100 percent uptime with planned outages announced in advance.

The team places a high value on customer confidence and the security of user data, and they use several security measures to prevent any attacks or breaches.

Koinly does not need access to your private keys or to any funds on your exchange accounts, and it does not transmit the value of your digital assets. However, when establishing API connections, it’s always a good idea to disable the ability to withdraw and trade.

Who should use Koinly?

Since Koinly is an all-inclusive solution, this means that users will get the most appropriate tax calculations at their fingertips without having to do more research on their own. Koinly also uses only the most up-to-date information about crypto taxes and is thus able to provide you with the most accurate information imaginable.

Koinly can be used by individuals or corporations to automatically import transactions, and monitor all market prices, wallet transfers, calculate your crypto gains/losses, and generate tax reports.

Koinly also offers a mobile trading platform that allows you to do everything from buying and selling cryptocurrencies, to tracking your trades and transactions. This functionality can be useful for experienced traders who want to go back and report what they’ve done in the last five years.

How to get started

Step 1.  Add your wallets

The Koinly ecosystem is a collection of wallets that are linked with one another. Each wallet in the system is a container for all of your transactions across multiple exchanges or real cryptocurrency wallets. You may create one such wallet, for example, for one of your preferred trading platforms in Koinly.

To add a new wallet, go to the Wallets page and select Add Wallet from the drop-down menu. You can search for it or look through the list to pick your wallet (exchange, wallet, or service).

Koinly review: 6 reasons to start using Koinly crypto tax software 2

If the service you used doesn’t exist in Koinly yet, you’ll see an option to build a custom wallet as shown below.

Step 2. Import transactions

After you’ve selected the wallet icon, you’ll be able to choose how transactions are imported.

For most exchanges on Koinly, you’ll have a Setup auto-sync option that utilizes API keys to keep your data up to date..

In the event that you can’t find this option or prefer to import using csv files, you can do that by uploading a CSV file.

Step 3. Calculate reports

When your import is complete, Koinly begins working on the numbers. The first thing it does is retrieve market prices for all of the items you’re selling and calculate your capital gains.

The way these taxes are calculated varies by nation, and Koinly employs a variety of cost basis methods such as FIFO, LIFO, ACB, and so on.

Step 4. Downloading your tax reports

When Koinly has completed assessing your profits, a tiny notification will appear on your screen, advising you to refresh it.

To see a quick summary of your capital gains and income, go to the Tax Reports page and refresh it. You don’t need to buy a Koinly paid plan to view the summary; however, if you want to download it, you’ll need to purchase one.

Get $25 when you create a Koinly account here

Conclusion

Koinly keeps track of your portfolio value daily so you won’t have to do it yourself. Koinly also supports all of the most widely used crypto exchanges and includes tax-related information on each exchange directly in Koinly, so you can use Koinly even if you don’t use a single cryptocurrency exchange.

Koinly is a good solution for anybody in a permitted area seeking to keep track of their crypto transactions in order to submit tax reports. The web-based tool is simple to use, and it allows you to quickly link up your exchange accounts and wallet addresses and monitor your activities.

The platform works well with a wide range of crypto service providers, and it covers the majority of its basic operations. The service offered enables you to simplify keeping track of all your transactions while also eliminating the stress associated with monitoring all your activities.

Overall, Koinly offers a service geared towards the developing cryptocurrency market, and keeping track of all of your crypto activities will appeal to anybody who wants to stay financially compliant while also ensuring that they can “cash out” or exchange between crypto and fiat with minimal hassle.

CryptoWhat
CryptoWhat was created in 2015 and has become one of the most trusted and well-respected sources of information on all things crypto. The blog's authors are dedicated to providing clear, concise, and jargon-free explanations of this complex technology, so that everyone can understand it.
By: Patrick Moore
By: Patrick Moore