Introduction to Koinly

Koinly is a cryptocurrency tax reporting and portfolio tracking platform designed to simplify the complex process of managing digital assets for both individual investors and professional traders. With the rapid growth of cryptocurrencies, governments worldwide have implemented tax regulations that require accurate reporting of crypto transactions. Koinly provides tools that automatically track your crypto activity across multiple platforms and generate tax reports compliant with local tax laws. Its main goal is to reduce the time, effort, and risk of errors involved in calculating crypto taxes.

Key Features of Koinly

• Automatic Transaction Import: Connect directly to exchanges, wallets, and blockchain addresses to import transaction history automatically, including trading, staking, lending, and airdrops.
• Portfolio Tracking: Provides real-time balances and valuations across multiple wallets and exchanges.
• Capital Gains Calculations: Supports FIFO, LIFO, HIFO accounting methods based on local tax requirements.
• Income Tracking: Tracks crypto income from mining, staking, lending, and airdrops.
• Tax Reports: Generates tax reports compatible with major authorities like IRS, HMRC, ATO, and exportable in CSV, PDF, and TurboTax formats.

Supported Platforms and Cryptocurrencies

Koinly supports thousands of cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and most altcoins. It integrates with major exchanges like Binance, Coinbase, Kraken, Bitfinex, and wallets like MetaMask and Ledger. Blockchain integrations track transactions on Ethereum, Solana, Bitcoin, and more, even outside exchanges.

How Koinly Works

1. Connect Accounts: Link wallets and exchange accounts via API keys or upload CSV files.
2. Import Transactions: Koinly automatically organizes transactions by type.
3. Categorize Transactions: Most transactions are auto-detected; manual categorization is possible for accuracy.
4. Calculate Taxes: Capital gains, losses, and crypto income calculated based on country tax laws and accounting method.
5. Generate Tax Reports: Ready-to-file tax reports for local authorities or accounting software.

Pricing and Plans

• Free Plan: Up to 10,000 transactions for portfolio tracking; no downloadable tax reports.
• Hodler Plan: Small portfolios with tax reports for limited transactions.
• Trader Plan: For active traders; supports more transactions and advanced features like margin trading reports.
• Pro Plan: Professional investors/accountants; high transaction volumes and multiple wallets.

Accounting Methods Supported

• FIFO (First-In, First-Out)
• LIFO (Last-In, First-Out)
• HIFO (Highest-In, First-Out)
• Average Cost (commonly used in the UK)

Tax Compliance and Reports

• IRS (USA): Form 8949, Schedule D, etc.
• HMRC (UK): Capital Gains Tax reports.
• ATO (Australia): Reports formatted for Australian submission.
• Other Countries: Canada, Germany, France, Singapore, and more.

Portfolio Management

• Total portfolio value in real-time
• Gains and losses over time
• Asset allocation across wallets and exchanges
• Historical performance charts

Security and Privacy

• Read-only API keys; no withdrawals or transfers possible
• Encrypted and secure storage of sensitive data
• Option to manually upload CSV files without sharing API keys

Pros and Cons of Koinly

Pros:

• Supports thousands of cryptocurrencies and exchanges
• Automatic transaction import and categorization
• Generates tax-compliant reports for multiple countries
• Portfolio tracking and performance insights
• Flexible pricing and plans

Cons:

• Advanced features require paid plans
• Manual adjustments may be needed for complex DeFi transactions
• API setup can be slightly technical for beginners

Who Should Use Koinly?

• Crypto traders and investors for efficient capital gains and tax calculation
• Tax-conscious individuals for compliance
• Accountants and tax advisors managing multiple clients
• Portfolio managers monitoring multiple wallets and exchanges

Conclusion

Koinly simplifies cryptocurrency tax reporting and portfolio tracking. With automated transaction imports, multi-platform support, flexible accounting methods, and country-specific tax reports, it saves time, reduces errors, and ensures compliance. It also provides detailed portfolio insights, making it valuable for casual investors and professional traders alike.