Nothing on this website is, or shall be deemed to constitute, financial, investment or other advice or a recommendation by us in respect of any product or service referred to on this website. The information on this website is provided for general information purposes only and should not be relied upon by you.

Koinly Review 2022 [PLUS Coupon Code] Cryptocurrency Tax Management

Koinly Review 2022
  • Easy To Use?
  • Cost
  • Support
  • Time Saving
4.9

Investing in cryptocurrency involves daily reporting your additional income and capital gains every time you file your taxes. While you can manually accomplish these tasks, it becomes more tedious when juggling multiple positions across different exchanges, especially when minimizing losses and maximizing gains. 

Fortunately, software like Koinly allows the automatic calculation of crypto taxes with generated tax reports. Koinly is one of the most comprehensive software that can help with proper cryptocurrency tax management and I use it regularly for my personal tax accounts. (Also see our Tokentax review).

Here’s an extensive Koinly review and guide, allowing you to determine whether it’s the right software for your crypto tax management needs. 

PLUS – don’t miss out on free money!!

Koinly can be used completely free, but you may need to pay a small subscription (depending on your requirements). If you buy Koinly after reading this review then you can get $25 coupon towards your software simply by signing up using THIS LINK.

Here’s quick summary/overview about Koinly tax software;

–> Register A Koinly FREE Account Here <–

What is Koinly, and How Does it Work?

Koinly, one of the biggest crypto tax management platforms online, was created and established in 2018, with its main office situated in Palo Alto, California. This online crypto tax platform allows careful monitoring of your crypto activities while regularly generating compliant tax reports. 

With Koinly, you can integrate all your crypto wallets to help keep track of their activities, such as the following:

  • Trading
  • Staking
  • Mining
  • Lending
  • Airdrops 

You can use Koinly to import all your transactions, accomplish wallet transfers, monitor current market prices, calculate your crypto gains and losses, and generate tax reports. Available in multiple countries, Koinly is widely used by several business people, including places in US, UK, and Canada. Additionally, this online tax platform is compatible with the following accountancy methods:

  • Last In First Out 
  • First In First Out
  • Highest and Lowest Cost
  • Shared Pool
  • Average Cost Basis

–> Claim Your $25 Coupon At Koinly HERE <–

What are the Key Features of Koinly?

Koinly can directly integrate over 6000 various blockchains and deliver support to major cryptos, including Litecoin, Bitcoin, and Ethereum. You can also connect your software-based cryptocurrency and hardware wallets like Trezor and Ledger devices to Koinly. Additionally, the integration of Koinly is also possible for more than 350 crypto exchanges, including Coinbase, Kraken, and Binance. 

The following are the key features of this online crypto tax management platform:

Multiple Country Support

Koinly is highly compatible and available to more than 20 countries across Asia, Oceania, Asia, and the USA. Additionally, it also allows the generation of localized K4, Schedule D, Form 8949, Sheet 9A, and Rf1159 tax reports. Utilizing Koinly is your one-stop application software for your tax management with this diverse availability. 

Simple Data Import

Koinly allows easy connection with various services via import key data and API. You can also expect optimum support for manual CSV file imports and imports in xPub, yPub, and zPub. Data migrations from BlockFi, Nexo, CoinTracking, and Deribit are also possible.

Full-Scale Resources

Aside from the main use of this tax management platform, Koinly also contains other helpful resources, such as Regional Tax Guides, Crypto Tax Calculator, and Tax Accountant List. Its website also contains several blogs about what it can offer, allowing beginners and even professionals to understand this software better. 

Reliable Customer Support

Koinly contains a reliable Support section on its website and a FAQ page to address your common queries. Moreover, you can easily reach Koinly’s staff through live chat and email or contact them on their Twitter or Facebook page. 

Free Account Set-up

An essential feature of Koinly is the option to set up a free account which you can use to track as many as 10,000 transactions. With a free account, you are also permitted to generate tax reviews on capital gains and track your crypto trades and other activities indefinitely. 

Portfolio Tracking

When you create an account in Koinly, you’re provided a dashboard displaying your holdings, portfolio value, performance per holding, and a detailed list of your transactions. Koinly also displays an easy-to-read and understandable piechart that provides a breakdown of your assets. 

While Koinly’s dashboard is not as extensive as other portfolio trackers, such as Kubera, it can still help you check all your transactions to spot any possible discrepancies. 

What are the Tax Reports Available?

Aside from the localized tax reports mentioned earlier, there are also other standard reports available in Koinly, including the following:

1. Complete Tax Reports that include your capital and marginal gain transactions, yearly balances, income, and asset summaries, all downloadable PDF files. 

2. Transaction Report that displays all your transactions, downloadable as CSV.

3. Report on your capital gains with all your disposals, also downloadable as CSV.

4. An income report, another CSV file, containing all income transactions, such as forks, airdrops, staking rewards, and interest.

5. Donations, Gifts, and Lost Asset Reports that include any tagged transactions as Donation, Gift, or Lost, also downloadable as CSV.

6. Expense Report containing your tagged transactions as Cost, but excluding your trading fees included in the report on capital gains.

7.  End-of-Year Holding Report, downloadable as CSV.

8. Turbotax Report containing all your transactions compatible with Turbotax tax software, downloadable as CSV.

What are the Pros and Cons of Koinly?

Like any software, Koinly contains advantages and disadvantages you should weigh to determine whether it’s the right application you need. 

Pros 

In generating your IRS Form 8949, one of the best advantages of Koinly is its ability to include Schedule D in tax reports, unlike Taxbit and Accounting. Additionally, unlike its competitors, this extensive tax management platform can also support crypto payments. You can freely use your crypto money, such as USDC, BTC, ETH, and DAI, in processing payments, as well as credit or debit cards in Koinly. 

Koinly also offers comprehensive cryptocurrency support, allowing you to track transactions for over 6,000 cryptocurrencies aside from the popular ones like Etherium, Dogecoin, and Bitcoin. Finally, Koinly also offers a share access feature, where you can establish your tax team and invite your tax agent or accountant to access and utilize your Koinly account. 

Cons

Koinly also contains a few limitations. For one, Koinly cannot sync or track your NFTs automatically if you desire to add them manually. While it has a mobile application, iOS and Android Koinly apps are still in beta mode. With this, you still need a computer to access all the features of this tax management platform. 

Lastly, Koinly cannot generate other cryptocurrency tax documents. For instance, you will need to manually fill out other IRS tax forms, such as Schedule 1 or Schedule C if you are a lend crypto or a business entity. 

–> Claim Your $25 Coupon At Koinly HERE <–

How to Get Started on Koinly?

Signing up and creating an account on Koinly is straightforward. All you need to do is input the necessary information, and you’re good to go. One of the best things about Koinly is your freedom to choose between setting up your location for tracking your tax or choosing only to track your portfolio.

Once you are on your dashboard, follow our simple step-by-step instruction guide below. 

Add Your Wallets 

Koinly refers to all crypto exchange platforms, lending services, and wallets as “Wallets.” Simply head to the Wallets page and select “Add Wallet” to start creating one. When choosing one, you can easily search for your wallet on the list provided on Koinly. 

Should you not find your wallet, you can try to type in your wallet or exchange platform, and you will be directed to a page where you can customize one. 

Import Your Data

After selecting a particular Wallet, you can choose your preferred method of importing your transactions. Normally, you can find the “Setup Auto-sync” option using API keys that will automatically download your transaction history. This option is usually recommended because it does not involve dealing with CSV files. 

Update Gains and Review

After Koinly imports your new transactions, it fetches market prices, matches transfers within your wallets, and calculates capital gains. An indicator is present on the platform while these processes are happening. After Koinly completes these tasks, you can review your wallet and transactions to check whether the data are accurate. 

Download Tax Reports

You can download your tax reports by heading to your Tax Reports page, where you will see a summary of all your capital gains and tax income for any year. Should you wish to download these reports, scroll to the bottom of the page, where you can easily download these files either in CSV, PDF, or Excel formats. 

One of the best things about Koinly is the indefinite number of times you can download these reports. Moreover, you can readily revise your data and generate new tax reports anytime. 

How does Koinly Fair in Pricing?

Koinly consists of various plans for all crypto traders with different activity levels:

Free Plan 

Koinly’s free plan is extensive enough to track a user’s trades, transactions, wallet, and exchange accounts while also allowing a preview of his capital gains tax. When you get a free plan, you can also access LIFO and FIFO tax reports, allowing you to import data from various sources and contact the Koinly team.

–> Join Koinly FREE Here <–

The Hodler Account

Priced at $49 every tax year, the Hodler plan allows the generation of LIFO and FIFO, international tax reports, Form 8949, Schedule D, and comprehensive audit reports. This plan also allows TurboTax export and TaxAct with up to 100 transactions. 

The Trader Account 

The Trader plan amounts to $99 per tac year and provides the same features as the Hodler plan but allows 1000 transaction limits. You are also guaranteed priority support with this plan. 

The Oracle Account 

Finally, the Oracle plan costs $179 yearly for 3000 transactions and $279 when you plan to create 10,000 transactions. You also gain full access to all of Koinly’s features, including priority support and the ability to customize reports. 

Additionally, you gain the support team’s extra assistance, who can help you with the processing of custom files and bulk actions without additional manual charges.

How does Koinly Promote Safety?

Koinly prioritizes user data safety and customer trust with security protocols that help protect and guard accounts against breaches and exploits. One of the most important safety features of Koinly is not requiring private keys or gaining access to funds on anyone’s exchange accounts. 

Additionally, it’s best to disable the withdraw and trade abilities during your API connection configurations because Koinly can connect your accounts through API. Blockchain and API keys are encrypted with AES-256-GCM before storage. Moreover, Koinly also enables 256-bit encryption with all data sent back and forth. 

Koinly also utilizes Heroku and Amazon Web Services for data hosting and storage. Amazon Web Services is essential in securing hosting, while Heroku is a cloud application software that isolates customer data and applications for improved security. 

Basically, Koinly contains multiple premium-standard security protocols, ensuring that your data is kept safe and protected against breaches and hacking techniques. 

Are there Koinly Alternatives?

Koinly is an affordable online crypto tax platform, and its free plan is a great way for users to test out its features before subscribing to a premium plan. However, there are also other tax software options available other than Koinly. 

Generally, CryptoTrader.Tax and ZenLedger are also popular platforms that can contend with Koinly. 

If you are not into trading and prefer cheaper plans, Koinly is an ideal choice. Additionally, you can also manually input your NFT and DeFi transactions with this platform. This crypto tax management software also features more international support than ZenLedger and CrptoTrader.Tax. 

ZenLedger also comes with a free plan, and it offers good DeFi support with over protocols. Overall, the advantages of the other two platforms are minimal, so you can freely choose between the three top contenders. 

Frequently Asked Questions (FAQs)

Can Koinly work For Beginners?

Koinly primarily targets clients actively engaged in crypto-related activities, such as mining, trading, investing, lending, and staking. It might not be suitable for people who are only starting their journey in the cryptocurrency industry. 

However, Koinly features amazing benefits for crypto enthusiasts, regardless of their experience levels. This platform allows all its clients to track their crypto activities, including all the transactions and trades you’ve accomplished during the last 5 years. Additionally, this feature allows professional traders to return to the software and report their activities. 

Who can use Koinly?

Koinly targets active crypto investors the most. However, if you’re a novice and desire to use this platform, Koinly contains crypto tax guides and localized tax options that can help you understand how taxes on cryptocurrency work

What is considered a transaction on Koinly? 

A transaction on Koinly refers to any trade, withdrawal, or deposit added to the software. One of the key features of Koinly includes grouping smaller trades in a single transaction, resulting in fewer transactions done on Koinly than on other tax software. 

Is Koinly Free To Use?

Yes! There is a free plan with Koinly and you can run the free account forever. Some services are not available in the free plan though, so you may need to pay a small subscription depending on your needs.

Is It Safe To Connect Koinly To Coinbase?

Yes. Koinly software is very safe and is only going to be pulling transitions to make your taxes easier to calculate. It runs very well with Coinbase and will a lot of time compared to trying to do everything manually.

Does Koinly report to IRS?

Koinly is aimed at helping you to prepare your taxes. You can submit your tax return directly.

The Verdict: Is Koinly Worth It?

As long as you are located in a region or country supported by Koinly, this tax software is a great option to track all your cryptocurrency activities. It allows you to generate and file tax reports more conveniently. 

Additionally, Koinly is easy to use, allows hassle-free linking of all your crypto accounts, and contains certain limitations easily outweighed by its advantages. 

While this application is not recommended for beginners, it contains guides to help you understand the industry of cryptocurrency. It also features a free plan to help you test out the waters and determine whether Koinly is the tax software you have been looking for.

Other content you may like;


Connect United review

Leave a Comment