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Koinly Review — A Complete Crypto Tax Tool (Not FREE)

Gaurav Agrawal
Coinmonks

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Have you attempted to calculate the taxes owed on your cryptocurrency income? Confused while using multiple crypto exchanges and storing cryptocurrency in different wallets? By automatically grouping your trades into one location and assisting you in filing your taxes right away, Koinly takes care of all these inconveniences. This Koinly Review examines a tax management tool that may assist you with end-to-end taxes and real-time tracking of portfolio changes.

What is Koinly?

With the help of the online cryptocurrency tax platform Koinly, you can keep track of all your transactions and create reports that comply with all applicable regulations. Koinly makes it easier to keep track of all the ins and outs of recording transactions by allowing you to combine your wallets and keep track of activities like trading, mining, staking, lending, and airdrops.

Besides, it is possible to utilize Koinly to automatically import transactions, track market prices, manage wallet transfers, determine your cryptocurrency gains and losses, and create crypto tax reports.

The platform is accessible in more than 20 nations, including the US, UK, Canada, Australia, and New Zealand. It enables you to generate reports that can be saved as pdf files and import data using an API, CSV files, or x/y/zpub keys.

Koinly Features

These are some of the main features Koinly normally provides:

  1. Tax Reporting: Koinly tax software makes calculating and filing crypto taxes simple. To automatically import transaction data, it interacts with well-known exchanges, wallets, and platforms. It then employs this information to produce precise tax returns that include capital gains, losses, and earnings from cryptocurrency investments.
  2. Transaction Importing: Koinly supports the import of transactions from a variety of sources, such as exchanges, wallets, and CSV files. It can automatically obtain transaction history and has interfaces with many well-known cryptocurrency exchanges, saving you time and effort.
  3. Portfolio Tracking: Tracking your crypto portfolio is made easy with Koinly’s features. You may check your asset allocation, keep an eye on the value of your holdings, and track performance over time. You can use this function to learn more about your investments and make wise decisions.
  4. Crypto-to-Crypto Cost Basis Calculation: Due to elements like repeated purchases, transfers, and forks, figuring out the cost basis for cryptocurrency transactions can be challenging. Koinly uses a variety of techniques, including FIFO (First In, First Out) and particular identification, to precisely compute your crypto assets’ cost basis and ascertain any gains or losses.
  5. Reporting of Capital Gains and Losses: Koinly creates thorough reports of your capital gains and losses depending on your cryptocurrency transactions. For tax purposes, it determines gains or losses for each transaction and offers a thorough report. This makes filing your taxes simpler and more compliant with tax laws.
  6. Support for Tax Forms: Koinly offers support for a number of tax forms used in many nations, such as the IRS Form 8949 (U.S.), the HMRC Capital Gains Summary (UK), and others. Based on your transaction data, it generates the required tax forms and schedules, making it simpler to complete your tax filings effectively.
  7. Real-Time Exchange Rates: Koinly calculates the worth of your cryptocurrency holdings and produces accurate reports using real-time exchange rates. By doing this, you may be sure that your tax estimates and portfolio valuations are accurate.

How to get started with Koinly?

The general stages to getting started with Koinly are as follows:

  1. Visit the Official website: Create an account by going to the Koinly website (https://koinly.io). To create your account, you might need to give your email address and choose a password.
  2. Select Your Plan: Koinly crypto tax software offers a number of pricing tiers with various features and levels of support. Look over the available plans and select the one that best meets your requirements. You can choose between free plans with less functionality and expensive options with more comprehensive features and support.
  3. Exchanges and Wallets to Connect: After registering and selecting a plan, you must link your cryptocurrency exchanges and wallets to Koinly. This enables Koinly to import your transaction data automatically. Koinly facilitates integration with a number of well-known exchanges and wallets.
  4. Import the transactions: You can import transactions into Koinly after establishing a connection with your exchanges and wallets. Your transaction data will be retrieved by the platform and added to your account. As the basis for your tax reporting and portfolio tracking, make sure that all transactions are imported appropriately.
  5. Verify and Classify Transactions: After your transactions have been imported, check them over to make sure they are accurate. Based on the type of activity (purchase, sell, transfer, etc.), Koinly classifies transactions. Check to see if the category is accurate, and if it is, make any necessary corrections.
  6. Generate Reports: You can now produce reports for tax purposes after importing and verifying your transactions. In accordance with your transaction history, Koinly will determine your income, capital gains, and losses. Koinly will create the relevant reports in accordance with the precise tax forms or reporting regulations you provide for your nation.
  7. Review and Export Reports: Verify the data and information supplied a second time. When everything is to your satisfaction, you can export the reports in the selected file type, such as PDF or CSV, for further use.
  8. Tax filing: Use the Koinly reports produced to help you complete your crypto tax returns. To make sure that tax laws are being followed, get advice from a tax expert or adhere to the instructions given by your local tax authorities.

Koinly Pricing

Is Koinly Safe?

Yes, Koinly is safe to use. Koinly adopts safeguards to maintain the security of user data since it takes privacy and security seriously. To protect sensitive user information, Koinly commonly uses encryption and secure data handling procedures. To protect data from unwanted access or security breaches, they may employ industry-standard security procedures. Additionally, Koinly gives users the option to create read-only API keys for connections with exchanges, lowering the danger of fraudulent transactions.

In addition, Graylog, AWS Cloudtrail, and StreamAlert are used to create an audit trail for the Intercom application and Koinly infrastructure. They can trace setup modifications, do ad hoc security analyses, and audit access to every stack level.

The fact that Koinly doesn’t save any payment-related operations, i.e., information about your card, is crucial. Instead, Intercom’s partner, Stripe, handles all payment processing on their behalf. On Stripe’s security website, you can get information on its security configuration and PCI compliance.

Koinly Customer Support

In most cases, Koinly offers customer assistance to help people with any queries, problems, or worries they might have. Here are some typical methods you can get in touch with Koinly support team:

  1. Support Center: The Koinly website may have a section devoted to support or a knowledge base. To assist users in finding solutions to common concerns, this resource frequently includes frequently asked questions (FAQs), tutorials, guides, and troubleshooting methods.
  2. Email Support: Koinly might provide email support where you can contact their customer service team your questions or complaints.
  3. Live Chat: Koinly’s website may include a live chat feature. This enables you to communicate in real time with a customer service agent who can help you with your queries or problems.
  4. Community Forums: Koinly might offer discussion boards or forums where users can get in touch with one another, exchange stories, and ask the community for assistance. By participating in these forums, you may gain knowledge and support from Koinly staff members as well as seasoned users.

Koinly Affiliate Program

Affiliates for Koinly can receive lifetime commissions and up to 40% in commission. Starting at 20%, our base commission is. Therefore, a single sale’s commission might earn you up to $200. Further, the platform values open communication with its partners. You will therefore have access to the Koinly affiliate dashboard, which includes real-time tracking.

Koinly provides a top-notch tax answer, and it is accessible in more than 20 nations! The platform has it on good authority that its users adore its product because of its cutting-edge features and fantastic user interface.

Koinly Pros and Cons

Conclusion

Anyone in a supported region seeking for a solution to keep track of their cryptocurrency activity in order to prepare tax returns might consider Koinly. You can easily link your exchange accounts and wallet addresses on the web-based platform, which also lets you keep an eye on your activity.

The platform covers its key functions well and interfaces with a variety of crypto service providers. The service offered makes it easier to keep track of all your transactions and relieves you of the burden of managing all of your business’s operations.

Frequently Asked Questions

Is Koinly free?

Yes, Koinly provides a free trial so that consumers can try out the service before deciding to subscribe. All capabilities are accessible during the free trial, which enables up to 10,000 transactions and limitless connectivity with crypto wallets and exchanges.

Is Koinly tax reporting accurate?

Yes, Koinly’s tax reporting is true and accurate. To guarantee that tax returns are accurate and consistent with tax legislation, the platform makes use of cutting-edge algorithms and data analysis techniques.

Note: This article has affiliate links.

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Gaurav Agrawal
Coinmonks

Written by Gaurav Agrawal

6.3K Followers
Writer for

Telegram @gaurav_zen , Building - Coinmonks (https://medium.com/coinmonks) & CoinCodeCap (https://coincodecap.com) & Growth @ Bitquery.io