The Crypto industry has recently seen massive regulatory involvement all over the world. Several countries have come up with their tax regime, but it is not always easy to calculate and manage tax payments, especially when it comes to cryptocurrencies.
A sensible citizen who keeps their tax profile active and updated would always appreciate a helping hand. Koinly is an online crypto tax platform that enables its users to keep track of all their crypto activities and generate tax reports compliant with regulators of the respective countries.
What is Koinly?
Users of the crypto tax service provider Koinly can integrate their wallets and monitor their activities like trading, mining, lending, staking, airdrops, and rewards. It makes tax reporting easier by recording all ins and outs.
Founded in 2018 by Robin Singh, the company has expanded its services in more than 20 nations, including the United States, the United Kingdom, Australia, and Germany. Koinly, which integrates with over 17,000 cryptocurrencies from over 170 blockchains, 400 exchanges, and 100 wallets, offers comprehensive crypto tax reporting to a wide range of crypto investors, from beginners to experts.
It automatically imports transactions, monitors market trends and user wallet transactions, calculates crypto profits/losses, and generates tax reports for respective regulatory authorities based on users’ countries.
Moreover, the users have the freedom to import data in various forms as per their convenience, including API, CSV files, or x/y/zpub keys to receive reports that can be downloaded as pdf files. Moreover, these reports include First In First Out (FIFO), Last In First Out (LIFO) reports, Form 8949, Schedule D reports, and International tax reports.
In addition to offering a thorough online crypto tax auditing service, Koinly enables customers to connect with licensed tax accountants in their region.
Koinly Key Features
While there are many crypto tax reporting services out there, here are some of the features that make Koinly unique:
Extensive integrated services
The platform integrates over 17,000 cryptocurrencies and supports automatic data import from 170+ blockchains Bitcoin, Ethereum, Litecoin, and Neo. Moreover, Koinly supports over 400 crypto exchange platforms, including Binance, Coinbase, and portfolio applications like Delta and Blockfolio, along with 100 wallets to allow smooth tracking of activities like mining, trading, and staking.
Widely supported
Koinly is not focused on any one country and works in a customized way for users in different parts of the world. The platform is available in more than 20 countries across Asia, America, Australia, and Europe. It also allows users to generate localized Form 8949 and Schedule D, K4, Rf1159, and Sheet 9A tax reports.
A broad spectrum of resources
Koinly provides a comprehensive list of resources along with its crypto tax calculation and reporting service. It includes Regional Tax Guides, Tax Accountant lists based on different regions, and a blog to keep users updated about any developments or regulatory updates.
Comprehensive portfolio tracking system
Koinly users can see how much they have invested inc cryptocurrencies and get an overview of their mining, lending, staking, and trading income. It helps users to monitor all their realized and unrealized capital gains/losses.
Easy data import
Koinly aims to make the tax reporting process as easy as possible and thus allows users to connect with multiple services via API and import key information. It also supports manual CSV file imports and data migrations from Nexo, Bitmex CoinTracking, and Deribit.
Inexpensive diamond
Despite offering such a vast range of services, Koinly asks so much less in return. The platform can be used for free to track up to 10,000 transactions and generate capital gains tax previews. Users can use free accounts to indefinitely track their crypto trades and activities.
Customer support
Koinly has an intensive Support section and an FAQ page that aims to address the most common issues. They are also available to solve users’ queries via email and live chat.
Error Reconciliation
Koinly has multiple tools to find issues in your transactions, leading to eliminating all the inaccuracy in tax reports. Every modification in a user’s asset balance is backed by an entry, which results in an easy debugging process. Moreover, it highlights errors due to incorrect imports and automatically checks wallets via API to ensure correctness in data importing.
Getting started with Koinly
Signing up on Koinly is pretty simple as the landing page displays a “Sign up” button at the top right corner of the page.
- One can sign using their Google account or by entering an email address and password.
- Users can choose to set their location for tax tracking or just select to track their portfolio.
- From here, they can access the main dashboard for exchange accounts and wallet additions.
- The “Settings” tab offered by Koinly helps users adjust accounts as they like to add tax reporting information per their country’s guidelines.
Is Koinly safe?
The Koinly team places a high priority on user data security and customer trust, and it uses a number of security protocols to prevent any vulnerabilities or breaches.
It enables users to register and authenticate using Google/Coinbase, eliminating some of the need to save passwords, and it stores passwords for those that register by email using bcrypt.
Most importantly, Koinly does not need access to your exchange accounts’ funds or your private keys. However, disabling the option to withdraw and trade when creating your API connections is always a good idea since it communicates with your accounts via API.
The website is entirely served over HTTPS, further confirming the platform’s legitimacy.
For hosting and data storage, Koinly also uses Heroku and Amazon Web Services (AWS), the market leaders in their respective areas. The platform implements security measures at all layers, from physical to application without interrupting services.
Final verdict
A person seeking for a solution to keep track of their cryptocurrency activity for tax returns preparation and reporting might consider Koinly.
The platform covers its key functions well and interfaces with various crypto service providers. Users can easily link their exchange accounts and wallet addresses using the web-based interface and monitor all their activities.
The ability to keep track of all their crypto transactions will be appealing to anyone trying to stay in compliance with their financial commitments. Overall, Koinly offers a service targeted at the emerging crypto market with greater regulatory involvement.
If you’re interested in checking out new projects in the crypto space, you can find many reviewed by TheCoinRise Media here.
