Koinly is a widely used cryptocurrency tax calculator designed to simplify the process of calculating and reporting taxes on cryptocurrency transactions. It tracks your portfolio, monitors market prices and wallet transfers, calculates gains and losses, and generates tax reports for trading, mining, staking, and airdrop activities.
With the rapid growth of the cryptocurrency market and the increasing complexity of tax regulations, Koinly has become an essential tool for investors and traders aiming to stay compliant with tax laws while minimizing their tax liabilities.
In this comprehensive review of Koinly, we will examine its key features, pricing, pros and cons, and safety measures to help you determine if it is the right cryptocurrency tax calculator for you.
Koinly Features
1. Ease of Importing Data
You don’t have to keep going between different accounts and wallets. Koinly lets you easily sync your data and get a complete picture of all your trading.
The platform lets you connect different accounts through APIs and data for import keys. CSV file imports (manually) and xPub/yPub/zPub imports are supported by Koinly.
Data migrations from BlockFi, Nexo, Bitmex, and Debirit are also supported.
2. Portfolio Tracking
You can easily keep track of your crypto assets and taxes with Koinly. You can view your total holdings and portfolio growth across several wallets and accounts and your tax liabilities.
You can track actual ROI, and invested fiat, get an overview of your mining, staking and other crypto income, and see many profit, loss and capital gains you have.
3. Service Integration
Well over 6,000 blockchains are integrated by Koinly. The platform lets you automatically import Ethereum, Bitcoin, NEO, and Litecoin.
In addition, it is integrated with 350 crypto exchanges, including but not limited to Binance, Coinbase, and Kraken.
It also links with Blockfolio, Delta, and wallets (up to 75 wallets) and helps to keep track of your staking and mining activities.
4. Support in Several Countries
Koinly can be used in over 20 countries across the world. Its span covers Europe, Asia, the Americas, and Oceania.
The platform also lets users create localised Rf1159, Form 8949/Schedule D, K4, and Sheet 9A reports on tax.
5. Excellent Customer Support
Koinly has excellent customer care services that answer all your questions directed at them. With an FAQ page and a section for support, Koinly answers questions and queries. They also have an e-mail, live chat, Facebook page, and Twitter where you can reach them.
6. Resources
Koinly has a whole section dedicated to resources and materials to guide your cryptocurrency and tax journey. With Koinly, you get a blog for frequent informational updates, a crypto tax calculator, tax guides, and a tax accountant list.
Koinly Fees: How Much Does Koinly Charge?
Koinly offers four plans for its crypto tax application. Each version of the software carries a cost peculiar to it. You can choose any of the plans based on your requirements. These versions are explained below:
1. Free ($0)
This tier is completely free and suitable for those new to the software. It contains all the essential features of Koinly and lets you track your portfolio value. You can also preview your capital gains with the Free plan. You can track your futures, margin trades, and other DeFi activities with the free version,
Koinly’s free version is great for estimating the taxes you owe but is no good if you want the application to file taxes on your behalf.
2. Newbie ($49/Year)
This version is for those who have used the free plan and want to upgrade to a paid version. The Newbie is $49 per year and is the cheapest you can get on Koinly. This plan covers your localised tax reports; an additional hundred transactions can be filed.
Other features include custom file imports and a more detailed cost analysis of how Koinly calculated your taxes.
3. Hodler ($99/year)
The Hoddler plan is for those who are more than hobby traders and have many transactions. It allows you to track 1000 transactions in addition to the 10,000 offered by the free version.
4. Trader ($179/year)
As for the Trader version, you can track up to 3,000 transactions in addition to the 10,000 transactions while enjoying all other features of the Free and Newbie plans. You also enjoy customer support available through e-mail. If you are a trader who spends a lot of time moving from one cryptocurrency to another, this version is your best bet.
What Countries Does Koinly Support?
Koinly supports the following countries around the world:
- Canada
- Australia
- United States
- New Zealand
- United Kingdom
- Sweden
- Germany
- Denmark
- Finland
- Netherlands
- France
- Spain
- Norway
- Italy
- Austria
- Lichtenstein
- Czech Republic
- Estonia
- Malta
- Japan
- Singapore
- South Korea
What Exchanges are Supported?
With over 350 exchanges supported by Koinly, you have a rich roster to explore. The following are some of the best crypto exchanges in Canada you will find there:
- BlockFi
- Coinbase
- Binance
- Kraken
- Bitfinex
- Poloniex
- Bittrex
- Uphold
RECOMMENDED READINGS:
- What Is The Best Crypto To Buy Right Now? 7 Must-Have Coins
- What Is The Next Cryptocurrency to Explode in 2023?
Is Koinly Safe?
Yes, Koinly is safe. Koinly is very particular about the layered measures to combat security breaches. Koinly supports reading only API connection when importing transactions.
The platform will not need your private keys or have access to the assets contained in your exchange accounts. But it establishes a connection with your accounts through API.
API and blockchain keys are encrypted with AES-256 gcm, and then stored. All data transferred to and from Koinly are encrypted with 256-bit encryption technology.
Amazon Web Services and Heroku are used for hosting and keeping data safe.
This Koinly review is positive that Koinly is safe to use in Canada.
Is Koinly Good for Beginners?
Koinly targets people already active in crypto-related activities like trading, investing, mining, lending, and staking. So, you might struggle a bit if you are entirely new to the wild and wonderful world of cryptocurrency.
But don’t be discouraged if you’re fresh to it all. You can also use the platform to keep track of the timeline of your crypto transactions (as far back as five years, which means this feature is even more useful for experienced traders as well).
How to Use Koinly
To use Koinly effectively, follow the following steps below:
Step 1: Connect exchanges and wallets
You can easily connect wallets and exchanges by navigating to Wallet on the app and clicking the “Add exchange/wallet button”.
An extensive list of exchanges will be displayed to you, and then you will choose the one you want.
When you choose, you will be given the option to import data. You can let Koinly connect using their API, or you can utilise your public wallet address. You can also upload a CSV file.
2. Review Your Transactions
Navigate to the Transactions tab. Always review your transactions carefully (as Koinly is not 100% accurate).
It will automatically identify your transactions as a reward, cost, buy, etc. Keep in mind that the identifiers might not always be spot on.
Step 3: Downloading tax reports
Navigate to the Tax Reports section and click on which reports you wish to generate and the tax year of the reports.
This should be followed by selecting the forms with the drop-down menu. You can download any form you need to comply with Canadian tax regulations. These forms can be submitted with your tax return.
RELATED: 11 Best Crypto Wallets Canada For 2023
How to Sign Up for Koinly
To sign up for Koinly, visit Koinly.io’s signup page. A form for signing up will be made available to you.
You can complete most of the sign-up process automatically by logging in with your Google account or Coinbase. As an extra option, you can choose the email sign-up process.
When you are past this phase, you can begin entering all of your relevant information (including your location and the base currency that should be in the application).
Entering more relevant information helps Koinly estimate the taxes that apply to your crypto assets. This will allow them to automate the tax reporting process more efficiently.
How Does Koinly Compare to Other Crypto Tax Calculators?
Other crypto tax calculators offer similar features as Koinly. Let’s explore how Koinly compares to them.
Koinly TokenTax CoinTracker Fees Newbie ($49/Year) Hodler and Trader ($99/$179 per year) $65 Basic, $199 Premium, $2500 VIP Ranges from $59 to $199 Security Aes-256 gcm 256 bit encryption It uses TLS encryption It uses SSL encryption Best Feature Works in over 20 jurisdictions of tax Filing taxes and automatic tax reports Users can monitor their transactions on-the-go Upside It has a free version Helps with tax filing Has apps for both Android and iOS Turn-off It gets more expensive with use Doesn’t have a free plan Only 25 transactions available with the free plan
Final Thoughts on Koinly Review
Koinly is a reliable cryptocurrency tax software that offers a wide range of features, including automated transaction tracking, portfolio tracking, real-time market data integration, and various tax reporting options.
It is user-friendly and available in over 20 countries worldwide. With different pricing plans, Koinly has made it affordable for users to choose the plan that fits their requirements.
Additionally, its excellent customer support and resource section makes it easy for users to navigate their tax journey.
If you want to simplify your cryptocurrency tax reporting and ensure compliance with tax regulations, Koinly is an excellent option to consider.
This Koinly review article definitely recommends Koinly.
FAQs on Koinly Review
Why Are Koinly’s Charges High?
As a result of their dominance and brand reputation among crypto tax platforms, they charge higher prices than many others. Frequent traders can look for cheaper options for their crypto tax needs if they feel the costs are too high.
But remember that high costs often come with high value.
How is GST/HST Calculated on Cryptocurrency Taxes in Canada?
As a business owner/self-employed person who makes $30,000 or more yearly, you are expected to file GST/HST when the time for tax comes. If you get paid in cryptocurrency for your goods and services, you will need to estimate the GST.
This is done using the average market value when exchanging your assets. Records of GST have to be organised for anybody in charge of a business or self-employed.
