Like most people, you probably don’t want to deal with your cryptocurrency taxes. It’s tedious, time-consuming, and often confusing. But it’s important to do them correctly, or you could end up paying a lot more than you owe.
But did you know that you can use Koinly to simplify the process? Fortunately, software like Koinly can automatically calculate your crypto taxes and provide comprehensive tax reports to you.
If you seek an all-in-one crypto tax solution that can save you time, Koinly is an excellent option.
In this Koinly review, we’ll talk about how Koinly works and why it might be the best option for you to calculate your crypto taxes.
Fortunately, there are now some great software options to help you with your crypto taxes. One of the best is Koinly, which is designed to be simple and reliable. Let’s take a closer look at how it works.
Connect with all the exchanges and wallets you use
Saves time by automatically creating tax reports
Support for over 100 countries
Get your taxes done quickly and easily
Sleep easy knowing you’re in compliance with the law
What Is Koinly?
Koinly is a cryptocurrency tax software that helps you calculate your taxes and reduce them for next year. The Koinly company provides an easy way to calculate your crypto taxes and stay compliant with the law. It is simple and reliable.
Koinly is headquartered in London and was founded in 2018. The company has a team of seasoned entrepreneurs and developers passionate about making crypto taxation easy for everyone.
By using Koinly, users can save time and money on their taxes. In addition, the software provides users with the ability to track their crypto portfolio performance and generate reports for tax purposes.
Cryptocurrencies and Exchanges Supported
Koinly supports over 17,000 crypto assets and has integrations with 350 popular exchanges such as Coinbase, Binance, and Kraken.
With more and more users looking to lend and stake their crypto, Koinly has emerged as a leading solution for tracking and managing these activities.
With Koinly, it is possible to detect different types of income from margin and futures trading. Thus, you can be sure that everything is accounted for.
Koinly allows users to connect their wallets and exchanges and then automatically recognizes and tags all their income from lending and staking. This makes it easy to see how much you’re earning and also makes it easier to file your taxes.
As a result, you can be sure that all your income will be properly accounted for come tax time.
As the DeFi and crypto sectors grow, Koinly is poised to become the go-to solution for managing your digital assets.
In addition to being a crypto tax software company, Koinly also has a blog that provides educational articles about cryptocurrency taxes.
How Does Koinly Work?
Koinly works by connecting to your exchanges and wallets via API and then imports your transaction data. It then uses this data to calculate your capital gains/losses using either the FIFO, LIFO, ACB, PFU, or Shared Pool method.
You can also manually add transactions that are not from an exchange (e.g., if you mined some coins).
Once all of your transactions have been imported, Koinly will generate a report showing your total gains/losses for the year. You can then use this report to file your taxes.
Tracking your Cryptocurrency Portfolio with Koinly
Koinly makes it simple to stay on top of your virtual currency portfolio with its cutting-edge technology.
You can easily view all your transaction history in one place and get real-time market data and insights to help you make informed investment decisions.
With Koinly, you can connect all your wallets and exchanges in one place. This way, you can get an overview of your entire crypto holdings at a glance.
Koinly makes it easy to track your cryptocurrency portfolio and calculate your taxes in a matter of minutes.
With Koinly, you can see exactly how much you’ve made or lost in any given period. This makes it easy to stay on top of your investments and make informed decisions about where to put your money.
Koinly Countries Supported
Koinly is a leading provider of crypto tax software that supports over 100 countries. The company’s software is designed to help users prepare their taxes in an easy and automated way.
Koinly creates localized versions of tax reports when you change your country of residence. Thus, it does more than just adjust currency amounts.
Koinly is an excellent solution for calculating your crypto taxes and reducing them for next year. It can automatically generate a range of reports for different countries, including the US, Canada, Australia, and the UK. This makes it easy to stay on top of your tax obligations and avoid any nasty surprises.
Koinly may generate the following tax reports:
- Complete Tax Report
- Transaction Report
- Capital gains Report
- Income Report
- Gifts, Donations & Lost Assets
- Expenses Report
- End of Year Holdings Report
- TurboTax Report
Koinly may also create a variety of localized tax reports for countries:
- Form 8949 and Schedule D
- Capital gains summary for UK
- Swiss Valuation Report
- Lomake 9
- Schedule 3
- Summarized ATO report
- Formulaire 2086
Koinly Mobile Apps
Koinly offers an Android mobile app for free, so you can track your crypto taxes on the go.
The Android app offers a sleek and easy-to-use interface, allowing you to view your assets and their growth over time.
You can also see your tax liability in real-time, so you can make informed decisions about your investments.
With Koinly, you’ll have all the information you need to make the most of your crypto assets.
Koinly has a simple pricing structure of $49 per year for the Newbie plan, covering most users’ needs. The Hodler plan is $99 per year and includes 1000 transactions.
Furthermore, the Trader plan costs $179 per tax year and raises the user’s transaction limit to 3000.
The Pro plan costs $279 per tax year and allows users to connect up to 10,000+ transactions. In addition, both the Trader and Pro plans offer email support.
There is also a Free plan that allows you to connect up to 10,000 transactions.
Unlike the Free plan, all paid plans provide various premium features such as: Generating international tax reports, thorough audit reports, downloading Form 8949, exporting to TurboTax, custom file import, and cost analysis.
How Does Koinly Compare to Its Competition?
Koinly is among the most reasonably priced cryptocurrency tax software currently available on the market. In addition, their free plan means you can try it out before committing to anything.
However, there is numerous alternative tax software to consider.
Here’s how Koinly compares to CryptoTrader.Tax, which is one of the most popular competitors.
How to Open an Account
You may use your Coinbase or Google account to join Koinly. You can also register for an account with your name, email address, and password.
You don’t need to provide your credit card information to use Koinly on a free account, which is a benefit.
Once you create a free account, you can link as many wallets, exchanges, and DeFi services as you like to begin using the software.
There is no KYC policy present on Koinly’s platform. So you can get started in just a few minutes.
Although this is not something to be concerned about, it’s worth noting that importing transaction data from exchanges may take anywhere from 15 to 20 minutes.
How Safe is Koinly?
If you’re like me, you’re always a little bit suspicious of any new financial software. We’ve all been burned before by putting our trust in the wrong places.
So it’s only natural to wonder: is Koinly safe?
Here’s what I can tell you: Koinly is built on top of industry-standard security protocols. Your data is encrypted and stored securely on their servers. And if that’s not enough for you, all of Koinly’s data is encrypted in transit using 256-bit encryption to add an extra layer of protection.
In addition, Koinly does not demand your private keys or access to any funds on your exchange accounts, making it ideal for those concerned about maintaining their funds securely.
Notably, Koinly allows you to use your Google or Coinbase account to log in. In this scenario, no password is kept on Koinly.
Nevertheless, because it connects to your accounts via API, you should always disable the ability to withdraw and trade while configuring your API connections.
Also, users who register through the website can use their email address and password combination to create an account. In this case, passwords are kept with a PBKDF function (bcrypt).
Before being saved in Koinly’s database, API/blockchain keys are encrypted using aes-256-gcm.
Amazon Web Services (AWS) and Heroku are utilized by Koinly for data storage and hosting.
So yeah, I’d say it’s pretty safe to use Koinly. But don’t just take my word for it – go check out their security page and see for yourself.
There are a variety of options for contacting Koinly customer service. The easiest way to reach a customer service representative is through its live chat feature.
Koinly also offers email support for its traders paying for the Trader or Pro tier plans, so you can always get expert help when you need it. You may also email general inquiries to [email protected]
Whether you’re just getting started in digital currencies or are a seasoned pro, Koinly is an excellent platform for managing your portfolio.
Koinly Review: The Bottom Line
Overall, Koinly is an excellent option for those looking for a simple and reliable way to calculate their crypto taxes. It’s simple and reliable, and it has all the features you need to get the job done quickly and easily.
The pricing is reasonable, and the interface is user-friendly. So if you’re looking for a way to track your crypto taxes easily, Koinly is definitely worth considering.