- >Best CryptoTax Software
- >Koinly Review
- Leading tax software for crypto users
- Support for all the major crypto exchanges and wallets
- Optional free version
- Available in a large number of countries
The point of Koinly is to streamline all of the activities related to your cryptocurrency holdings. Whether you’re just buying bitcoin and holding for the long term or you’re trading different cryptocurrencies on a daily basis, tax obligations are bound to pop up in your local jurisdiction from time to time. Koinly is able to take in all of the information regarding your exchange accounts and personal wallets to automatically generate a complete tax report for your crypto portfolio in a matter of minutes.
The extensive support for exchanges and new projects in the area of decentralized finance make this one of the most complete options on the market for automating your tax reporting every year. This crypto tax software is a bit more expensive than some other options on the market, but at the end of the day, most crypto users will find Koinly is also simply the best option for taking care of their tax reporting needs.
Koinly Pros & Cons
Works in more than 20 different tax jurisdictions
Multiple tiers available with varying costs
Free version of the app is available
Supports advanced cryptocurrency use cases like staking and decentralized finance
Supports more than 6,000 cryptocurrencies and 350 exchanges
Cannot pay for services via bitcoin or any other cryptocurrency
This app becomes more expensive for frequent traders
Generally more expensive than other options on the market
Best Features of Koinly
When it comes to features, Koinly doesn’t have many niche offerings that are targeted towards a small group of unique crypto users. Instead, Koinly has focused on simply making their platform useful to as many different bitcoin and cryptocurrency users around the world as possible.
Although Koinly is based in California, the company offers their services to users in more than 20 different countries. The complete list of supported countries spans the entire globe, with availability in Europe, Asia, and the Americas.
In addition to extensive support for different jurisdictions, Koinly also offers perhaps the most comprehensive level of support for cryptocurrency exchanges and wallets. Currently, Koinly supports more than 6,000 different cryptocurrencies. Additionally, more than 350 different cryptocurrency exchanges are supported by Koinly for automatically importing users’ trade histories. Koinly even supports various crypto portfolio trackers, such as Blockfolio, which means figuring out your tax obligations can be even easier if you’re already using one of these apps to track your crypto holdings.
A final key selling point of Koinly is that it can be used for free. While the feature set of the free version of Koinly is extremely limited, the reality is that it can still help users track their crypto holdings and figure out the amount of capital gains taxes they are going to have to pay every year. Actually filing your taxes will require more manual work on your end when using the free version of Koinly, but this limited version of the crypto tax software can still be useful to get some basic information about your current tax obligations.
Is Koinly Good for Beginners?
While Koinly supports a large number of blockchains, exchanges, and other services to simplify the process of reporting crypto taxes, this extensive support can be somewhat overwhelming to the average person on the street who just bought some bitcoin a couple of years ago and wants to know what their capital gains taxes would be if they decided to sell right now.
Additionally, Koinly includes a number of tracking options for various advanced crypto use cases like mining, lending, borrowing, and staking. If you’re someone who has been around in the crypto space for at least a couple of years, then Koinly will probably be the perfect option to cover all of your needs. However, newcomers to the space may want to look into a simpler option with less bells and whistles.
How to Sign-Up for Koinly
Getting started with Koinly is extremely easy. All you have to do is go to Koinly.io and click the “Sign Up” button found on the top-right of the homepage. You will then be presented with a sign-up form. Notably, you can automate most of the sign-up process by choosing to login with your Coinbase or Google account. That said, you can also opt for the traditional email sign-up process if you wish.
Once you get through that basic first page, you can then start entering more detailed information about where you are located and what your base currency should be in the app. By entering more detailed information, Koinly will be able to figure out the taxes that apply to your crypto holdings and automate more of the overall tax reporting process.
How Much is Koinly?
There are four different versions of the Koinly crypto tax app available to users, and each version of the app comes with different costs.
The Free tier of Koinly comes with no payment necessary, obviously. Incredibly, most of the features of the app are still available with the free version of Koinly; however, the key issue for Free users will be that they cannot actually generate any tax reports with the app. While you’re able to import your entire crypto portfolio from all of your different exchange accounts and wallets (up to 10,000 transactions), you won’t be able to do much with the capital gains preview that can be generated with the app. The free version of Koinly is basically useful for estimating what you’re going to owe in taxes, but you’re generally going to have to pay something to get any piece of software to complete and file your taxes for you.
Newbie – $49 Per Year
The cheapest paid version of Koinly comes in at $49 per year. The main additional feature you get with this Newbie tier of the software is the ability to actually report your taxes from within the app. That said, your crypto transaction tracking limit is actually reduced from the free version of Koinly, dropping down to just 100. The other two additional features you get with this paid version of the app are custom file imports for your crypto portfolio and a more in-depth cost analysis on how Koinly calculated your taxes. If you only make a few trades per year and want your taxes to be completely automated, then this will be your best bet.
Hodler and Trader – $99 or $179
The top two paid tiers of the Koinly app are Hodler and Trader. Hodler is basically the same as the Newbie tier, with the only exception being that you can import up to 1,000 crypto transactions rather than just 100. The Hodler version of Koinly costs $99 per year. With the Trader tier, you gain access to an unlimited number of transactions for tracking and full customer support available via email. The Trader version of Koinly costs $179 per year and will be most useful to traders who are moving in and out of different cryptocurrencies on a regular basis.
What Countries Does Koinly Support?
According to the Koinly website, most cryptocurrency users around the world will be able to use this crypto tax tracking app. There is a base reporting template that is common in different jurisdictions around the world, and if your country uses this template, then you’ll be able to use Koinly. Additionally, Koinly lists these countries as explicitly supported on their website:
- United States
- New Zealand
- United Kingdom
- Czech Republic
- South Korea
What Exchanges are Supported?
It would be impractical to list all of the exchanges supported by Koinly due to the fact that there are more than 350 of them supported by the app. That said, the level of support included for each exchange can vary. For example, some exchange APIs do not provide Koinly with complete access to every activity that has every taken place on your exchange account.
Sometimes activities like buying bitcoin with a debit card or your margin trading history is simply unavailable via an exchange’s API, so you need to look into that before you choose Koinly as your crypto tax solution. Here are some of the popular exchanges and other services natively supported by Koinly:
Koinly has become the default option for crypto tax reporting for good reason, so there isn’t really much to look at here in terms of why you wouldn’t use this app for your tax needs every year. That said, Koinly has been able to charge higher prices than some other options on the market due to their brand recognition and overall dominance in the space. Those who trade rather frequently may especially be able to find cheaper alternatives for their tax needs. Higher costs could be a dealbreaker for some, but it’s important to remember that you get what you pay for in the crypto market.
Other than potentially-higher costs, another dealbreaker in the eyes of a bitcoin or crypto purist may be the fact that you cannot pay for Koinly’s services with cryptocurrency. Some potential users will want to opt for a service that helps further develop the crypto economy.