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In this article, we will tell you about Koinly – one of the best software solutions for recording cryptocurrency transactions. You will learn what Koinly is, how it works and why it is so important for any cryptocurrency trader or investor.
What is Koinly?
Koinly is an online service that helps you track all your cryptocurrency transactions and prepare reports for tax authorities. Koinly supports over 6,000 cryptocurrencies and 300 exchanges and wallets. You can easily connect your accounts to Koinly via API or upload CSV files with transaction data. Koinly automatically synchronizes and categorizes all your transactions, taking into account different types of events such as exchanges, transfers, mining, stealing, airdrops and others.
Accounting for cryptocurrency transactions is not just a matter of legality, but also efficiency. If you don’t know your real profit or loss from trading or investing in cryptocurrency, you can’t optimize your strategy and avoid unnecessary taxes. In addition, you risk fines or penalties from tax authorities if you don’t declare your cryptocurrency income correctly and in a timely manner. Koinly helps you solve these problems by providing you with accurate and up-to-date data about your cryptocurrency activity. You can get reports for different countries and regions, according to their tax laws and regulations. You can also export these reports in PDF or CSV format and send them to your tax office or your accountant.
Overview of Koinly and its features
Advantages and disadvantages of using Koinly
Like any other service, Koinly has its advantages and disadvantages.
Advantages:
– Koinly makes it easy to import your transactions from over 300 exchanges and wallets using APIs or CSV files. It also supports DeFi, margin transactions and futures.
– Koinly uses artificial intelligence to identify transfers between your own wallets and track your initial costs. This helps you avoid double taxation and account for all your losses.
– Koinly gives you a free view of your equity and gains/losses for any tax year. You can also see your overall portfolio, ROI and growth over time in a beautiful dashboard.
– Koinly can create ready-to-file tax forms for different countries and regions. For example, it can generate Form 8949 and Schedule D for the U.S. and an HMRC report for the U.K. It also ensures that your reports pass inspection.
Disadvantages:
– Koinly is not a free service. To get a full tax report, you need to purchase a subscription plan, which costs between $49 and $279 per year, depending on the number of transactions.
– Koinly does not provide financial advice or tax advice. You have to verify that your data is correct on your own and follow the laws of your country.
– Koinly does not support all types of cryptocurrency assets. For example, it cannot handle NFT, airdrops or forks.
Koinly vs Cointracker vs Aptos comparison
Koinly, Cointracker and Aptos are all tools designed for cryptocurrency portfolio management and tax accounting. While all three platforms perform similar functions, each one has different features.
Koinly differs from Cointracker and Aptos in the following ways:
- Wide range of supported cryptocurrency exchanges and wallets: Koinly supports over 300 exchanges and wallets, while Cointracker and Aptos have fewer partners.
- Ease of use: Koinly has a simple and intuitive interface, which makes it attractive for beginners and experienced users.
- Large selection of settings: Koinly allows you to configure various parameters and options for recording transactions and preparing tax reports, which makes it easy to work with the platform.
- Variety of packages and prices: Koinly offers several packages with different functionality and different prices, which allows you to choose the best solution for each user.
However, Koinly has some disadvantages compared to Cointracker and Aptos:
- Lack of integration with other financial tools: Cointracker and Aptos can integrate with bank accounts and other financial tools to provide a complete overview of the user’s portfolio.
- Lack of calculation accuracy: some users note that Koinly does not always accurately calculate value and tax liability for transactions.
- Limited functionality: Koinly lacks a number of additional features that competitors have, such as support for API creation and synchronization functions with payment systems.
- Insufficient options for multi-country users: Koinly is limited in its choice of tax laws, supporting only the tax laws of some countries, which may not be enough for some multi-country users.
Key Features of Koinly
Description of the SSO (Single Sign-On) functionality of Koinly
SSO (Single Sign-On) is a technology that allows users to access multiple applications and services using only one username and password. Koinly offers SSO functionality, which means you can easily sign into your Koinly account using your Google, Facebook or Apple credentials. This simplifies the authentication process and saves you time.
How the Koinly API works
An API (Application Programming Interface) is a set of protocols and standards that allows different software applications to interact with each other. Koinly provides an API, which makes it available for integration with other cryptocurrency services and applications. This allows users to automatically import their transactions and data from other sources into their Koinly account, making it easy to track their portfolio and tax reports.
Koinly Mobile App: Features and Benefits
Koinly also provides a mobile app for users that is available on Android and iOS. This app provides convenient access to your cryptocurrency data, transactions, and portfolio wherever you are. However, the most interesting features of the app are the following:
Quick and easy addition of transactions: you can easily add new transactions to your portfolio using the Koinly mobile app.
Real-time cryptocurrency price tracking: you can track cryptocurrency prices in real time, which will help you make more informed decisions about buying and selling cryptocurrencies.
Calculating taxes in Koinly
How Koinly helps in calculating taxes on cryptocurrencies
If you trade or invest in cryptocurrencies, you probably know that you have to pay taxes on your income from these activities. But how do you properly calculate and declare your taxes on cryptocurrencies? How do you know what tax rules apply in your country? How do you save on taxes in the future? There is one answer to all these questions – Koinly.
With Koinly, you can:
– Automatically import all your cryptocurrency transactions from over 300 exchanges and wallets
– Keep track of your portfolio, profits and losses in real time
– Calculate your cryptocurrency taxes based on all the specifics of your tax regime
– Generate ready-to-file tax forms and reports for your country
– Get tips and advice on optimizing your tax situation
Supported countries and tax regimes in Koinly
Koinly supports tax regimes for various countries around the world, including the US, UK, Canada, Australia, Germany and many others. The service automatically recognizes your tax jurisdiction and adjusts your cryptocurrency tax calculation parameters according to the laws of your country.
In addition, Koinly supports many tax regimes, including FIFO, LIFO, HIFO, LOFO, ACB, etc. This allows you to choose the tax calculation method that best suits your investment strategy.
Promo Codes and Coupons to Use Koinly
Koinly also offers various promo codes and coupons for its users to get a discount or free access to the service. For example, you can use promo code KOINLY50 to get 50% off your first month’s subscription or promo code KOINLY100 to get $100 in credit when you sign up.
Koinly Pricing
Description of Koinly plans and pricing
Koinly offers three basic plans for its users: Hobby, Trader, and Professional. Here are their features and pricing:
- Hobby: This plan is suitable for those who make no more than 300 transactions a year and want a preview of their capital gains or losses report. This plan is free, but does not allow you to download reports in PDF or CSV format, nor does it support integration with TurboTax or TaxAct.
- Trader: This plan is suitable for those who make up to 3,000 transactions per year and want a full capital gains or losses report as well as Form 8949 and Schedule D for the US or HMRC / ATO / CRA report for other countries. This plan costs $79 per year and allows you to download reports in PDF or CSV format and supports integration with TurboTax or TaxAct.
- Professional: This plan is suitable for those who make an unlimited number of transactions per year and want all the features of the Trader plan as well as access to the Koinly API to automate the process. This plan costs $179 per year and also allows you to download reports in PDF or CSV format and supports integration with TurboTax or TaxAct.
Answers to Questions About Koinly
What is koinly?
Koinly is an online service that allows users to track and manage their cryptocurrency portfolio. It also provides tools to calculate taxes on cryptocurrencies.
Is Koinly safe and legit?
Yes, Koinly is a safe and legitimate service. It uses HTTPS to protect data transfers and stores information in an encrypted form. In addition, Koinly complies with international data protection regulations and is regulated by data protection laws.
Is it safe to connect to Koinly?
Yes, connecting to Koinly is safe. The service uses the OAuth 2.0 protocol to authorize access to user data on cryptocurrency exchanges. This means that Koinly has no access to user logins and passwords, and portfolio data is transmitted directly from exchanges to Koinly servers in a secure manner.
Is Koinly a US company?
No, Koinly is not a US company. Koinly is headquartered in the UK but the service is available worldwide.
Is Koinly or CoinTracker better?
Both tools are useful for managing a cryptocurrency portfolio and calculating taxes. However, the choice between Koinly and CoinTracker depends on the individual user’s needs and the specific features they require. For example, Koinly supports a wider range of tax regimes and countries than CoinTracker, but CoinTracker offers more detailed portfolio analytics. Overall, it is recommended that you try both tools and choose the one that best suits your specific needs.
What is a substitute for Koinly?
There are various alternatives for Koinly, including CoinTracking, Delta, CryptoTax, Bitcoin.tax and others. Each of these tools has its advantages and disadvantages, and the choice of a certain tool depends on individual needs of a user.
How to use Koinly for free?
Koinly provides a free plan that allows you to use the tool to manage up to 10 transactions. Also, users can get free access to Koinly if they invite a friend to register and pay for the paid plan. In general, it’s recommended to check out the Koinly plans on their website to choose the best one for you.
How reliable is Koinly?
Koinly is a reliable tool for managing your cryptocurrency portfolio and calculating cryptocurrency taxes. It uses high-performance algorithms to calculate taxes accurately and automatically, and keeps user data secure with advanced encryption technology. Koinly also supports multiple tax regimes and countries, making it a convenient tool for users in different parts of the world.
How do I use Koinly for taxes?
Koinly allows you to automatically calculate taxes on cryptocurrency transactions. To use Koinly for taxes, you need to add your cryptocurrency transactions to the app. Koinly will then automatically generate tax reports based on those transactions. In addition, Koinly supports different tax regimes and report formats to meet the requirements of different countries and legislations.
How do I get started with Koinly?
To start using Koinly, you need to register on the official Koinly website and create your account. Then, add your cryptocurrency addresses or import files with transaction history. After that Koinly will automatically generate portfolio and tax reports.
How much does koinly cost?
The cost of Koinly depends on the plan you choose. In addition to the free plan, Koinly offers paid plans ranging from $49 per year to $399 per year, depending on the number of transactions and features needed. A free trial period is available for those who want to try out Koinly’s functionality.
Conclusions
Investing in cryptocurrencies is becoming increasingly popular among investors. However, dealing with cryptocurrencies can be a real challenge in terms of tax accounting and profit calculation. In this article, we looked at Koinly, a tool to help you calculate taxes on cryptocurrencies and simplify your transaction record keeping.
Koinly provides a wide range of features to simplify your cryptocurrency tax calculations. With Koinly, you can automatically import your transaction data from exchanges and wallets to get a complete and accurate report of your cryptocurrency activity. Koinly can also automatically calculate your profits and losses based on current tax rules and rates, helping you reduce tax risks and save more money.
Koinly is a powerful tool for managing your cryptocurrency portfolio and calculating taxes on cryptocurrencies. It provides accuracy, security and ease of use, making it a great choice for those who want to get the most out of their cryptocurrency investments. Whether you are an experienced cryptocurrency trader or a newbie, Koinly offers an intuitive interface that makes it easy to add and track your cryptocurrency transactions.
In addition, Koinly has many features that make it a great choice for calculating cryptocurrency taxes. This tool automatically maps cryptocurrency transactions to your country’s tax rules, allowing you to accurately determine your tax liability. In addition, Koinly supports multiple tax regimes, making it a handy tool for users from different countries.