Koinly Review [2021 Crypto Tax Software]

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Koinly Review

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Koinly Review

Koinly is a cryptocurrency tax software that compiles aggregated data, calculates your cryptocurrency taxes, and minimizes the cost whilst simultaneously expediting the process.

Onto our Koinly review!

Crypto Tax Reporting Software

With many reports finalizing in under 20 minutes, Koinly allows you to sync all your wallets, upload file transaction history, import APIs and use AI to detect transfers between wallets to precisely calculate the original cost. This not only helps to minimize errors when verifying transactions between wallets and separate exchanges, but it also creates an extremely user-friendly experience in which you can view investment processes in a simplified manner.

 

Supports Most Cryptocurrency Exchanges

Supporting over 300 wallets and exchanges, Koinly is beneficial to both the experienced and newcomers to the cryptocurrency space.

Koinly Crypto Tax Software

Cryptocurrency Tax Compliance

With every purchase or sell of cryptocurrency instituting itself as a taxable event, the process of being held accountable for your investments while being an active trader can often seem like an overbearing task.

By offering accountability for trading, mining, staking, and airdrops, Koinly ensures that users aren’t liable for penalty fees associated with overlooking any potential revenue streams that can incur a heavy cost at the end of the year.

After importing transactions from API keys or data imports from exchanges, Koinly ensures all calculations are correct and accurate. This overview is done for free and afterward, users can export tax reports through familiar platforms like TurboTax. By offering a multitude of tax forms such as Form 8949 and Schedule D, exporting reports are simplistic and easy, with limited liability and assured precision.

One of the most unique aspects of Koinly is that they go beyond the bare minimum of supporting just spot trading, by acknowledging a wide range of crypto transactions.

By helping hold users accountable for automated data import, margin trading, staking, lending, and DeFi, smart transfer matching also detects wallet transfers under your account and helps prevent unnecessary additional costs by excluding them from tax reports.

How Does Koinly Work?

The setup process is relatively simple and can be completed in a bare minimum of four steps. First, users add their wallets to the Koinly application, electing which exchange it is based on or creating a custom wallet for options that aren’t listed.

Second, users import transactions through setup auto-sync API keys or uploading CSV files from exchanges. Afterward, Koinly will start fetching market prices, analyzing transfers between wallets, and calculating gains made on crypto trades. Different cost basis methods used include FIFO, LIFO, and ACB, but will likely vary depending on the country you choose to file your taxes from.

Lastly, users can download their tax reports after Koinly is done calculating and can file accordingly. 

Koinly Features

Koinly has a forever free trial you can use to test the platform out. You will only ever need to buy a plan if you want to download your tax reports.

  • Smart transfer matching
  • Mining, Staking, Lending, Forks
  • Exchange & transaction fee tracking
  • 6000+ cryptocurrencies
  • 6+ years of historical spot prices
  • Exchange API sync
  • CSV file import ETH address auto-sync
  • xPub/yPub/zPub import
  • Bitmex, Deribit, Bybit & others
  • Nexo, BlockFi & others
  • Migrate from Cointracking, Cointracker
  • Custom file import

Koinly Review: Parting Thoughts

After a thorough evaluation, users have little to no complaints about the security and usability of the Koinly platform. Koinly does not reserve the right to withdraw or interact with any of your funds and minimizes user exposure to fraudulent activity by promoting transparent practices and allowing full control over user assets during the evaluation period. Prices tend to be slightly higher than other competitors that file crypto taxes, but users may get more out of choosing a platform like Koinly especially if they utilize margin trading/lending.

Create Your Koinly Account

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Enjoy our Koinly review?

You may also be interested in CryptoTrader.Tax Review.

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