As a cryptocurrency investor, you have to pay taxes on the profits of your investments. Doing so on your own can be tedious and frustrating.
Fortunately, you can now use a crypto tax software like Koinly which does all the work for you.
Koinly is a cryptocurrency tax software that automates the entire process of tracking your capital gains and crypto taxes.
With a fast tax calculation service, flexible reporting options, automated exchange connections and streamlined export options Koinly is a reliable tool for tracking your crypto investments.
In this Koinly review, we’re going to cover what it is, how it works and the cost of using the software.
What is Koinly?
Koinly is a revolutionary tax reporting application that allows anyone with a cryptocurrency portfolio to report their taxes and claim their tax losses on each transaction.
It helps people who have been filing taxes manually or using online calculators to understand all the taxes associated with cryptocurrency.
Koinly has a user-friendly interface that allows you to input all of the relevant data and then see exactly which types of taxes apply to each transaction.
The Koinly app also shows you how much money you’ll need to pay in taxes based on current laws and regulations as well as what type of deductions might be available if any at all.
The platform works with a wide range of cryptocurrency assets, including Bitcoin and Ethereum, as well as many popular altcoins. Plus, it supports all relevant exchanges, wallets, and blockchains.
Whether you’re an experienced trader or investor, or just starting your journey in the world of digital currencies, Koinly will help you stay on the right side of the law.
Koinly Plans and Prices
Koinly offers a free plan that allows users to keep track of their trades, exchange and wallet accounts. However, to download your crypto tax reports, you will need to purchase a paid plan.
Koinly has four different paid plans that can suit any size of the portfolio. The plans vary in price and features. Below are the plans:
Newbie
The Newbie plan can be a great option if you’re just starting out with cryptocurrency and only have a couple of transactions to deal with. The price of the Newbie plan is $49 per year.
If you upgrade to the Newbie plan, you will get the following benefits:
- 100 transactions
- Tax reports
- Portfolio tracking
- Unlimited exchanges and wallets data import
- International tax reports
- Comprehensive audit report
- Margin trades and DeFi
Hodler
With this plan, you get access to all the same features as the newbie plan. You can still import your data from exchanges and wallets.
The only difference is that you will get 1000 transactions Instead of 100 and the plan costs $99 per year.
The following are the benefits you will get for purchasing the Hodler plan:
- 1000 transactions
- Portfolio tracking
- Unlimited exchanges and wallets data import
- Tax reports
- Margin trades & DeFi
- Comprehensive audit report
- International tax reports
Trader
The trader plan is good for professional crypto traders and it costs $179 per year. This plan gives you all the benefits of the Newbie and Hodler plans and more.
The main difference between the plans is that the trader plan allows you to make up to 3000 transactions. The plan also includes priority support.
Below are the benefits of purchasing a trader plan:
- Tax reports
- 3000 transactions
- Margin trades & DeFi
- Priority support
- International tax reports
- Portfolio tracking
- Form 8949
- Comprehensive audit report
- Unlimited exchanges and wallets data import
Pro
The Pro plan is good for people who have traded more and have a more complex crypto portfolio. This plan costs $279 per year.
The plan offers all the benefits of the trader plan but with this plan, you will get up to 10,000 transactions.
Below are the benefits of purchasing the pro plan:
- Tax reports
- International tax reports
- Comprehensive audit report
- 10,000 transactions
- Portfolio tracking
- Unlimited exchanges and wallets data import
- Margin trades & DeFi
- Form 8949
- Priority support
Koinly Pros and Cons
Koinly offers a convenient way to file crypto taxes but it has its pros and cons you need to be aware of. Here are some of its pros and cons:
Koinly Pros
Easy to Use Interface
Koinly has an easy-to-use interface that is beginner-friendly. The user dashboard is straightforward.
This makes it easy for even beginners to import their cryptocurrency transactions from multiple sources and generate a report.
Extensive Exchange And Wallet Support
Koinly supports more than 350 crypto exchanges and wallets including all the major ones like Coinbase, Binance, Bitbuy, Coinberry etc., and most wallets including Ledger, and Trezor.
Convenience
Koinly’s automatic import feature eliminates the need to manually enter your transactions or calculate your capital gains.
You can simply connect one or more exchanges, wallets and blockchains and let Koinly do all the calculations for you.
Accuracy
Koinly uses industry-standard algorithms to calculate capital gains (FIFO, LIFO, HIFO etc.). This ensures that you get the best accurate capital gains calculations no matter what kind of trades you make on your exchange.
Security
Your data with Koinly is encrypted using bank-level security measures so only you can access your account. The software also doesn’t sell or share your data with any third parties.
Tax-Loss Harvesting
Koinly scans your data for opportunities to realize losses that can be carried forward or used to offset gains in other areas of your portfolio. In this way, you can potentially save some dollars in taxes.
International Support
Some tax software only supports users in a particular country but Koinly is an exception. It supports users from all over the world, including Australia, Canada, China, France, Germany, India, Japan, and more.
Koinly Cons
Expensive for Frequent Traders
Koinly also charges based on the number of trades you make each month. The lowest paid plan only allows for 100 trades per month, which may not be enough for frequent traders.
Requires Manual Checks
Since it’s an automated tool, you still need to check everything manually. If you see that a transaction is not correct, you can fix it manually.
No Free Report Download
Koinly doesn’t offer a free report download. Therefore, you must purchase a paid plan to download reports.
How to Use Koinly in Canada
Looking to file your crypto taxes in Canada? Here’s how you can use Koinly to file them:
1. Connect Exchanges and Wallets
To use Koinly in Canada, first, you have to create an account. After creating an account, you will need to add an exchange by using the “Add exchange/wallet” option.
After clicking on the option, a list of all the exchanges that Koinly support will be deployed on the screen for you to choose.
All you have to do is choose the exchange you want to add. You can connect all your wallets/exchanges so that Koinly can retrieve all your transactions in one place.
2. Review Transactions
Immediately you’ve connected your wallet/exchange, Koinly will start processing your transactions and you can view the status on the same page to see if there are any mistakes.
If you find any mistakes then you can edit the transaction details by clicking on them and then pressing the Edit button.
This will open up a popup where you can change the details. If you have made a mistake during import then simply delete the transaction and reimport it.
3. Download Your Tax Report
Once you have reviewed your transactions you are ready to download your reports. Koinly automatically generates tax reports in CRA tax form format which you can download in PDF, CSV, and Excel format.
You can simply use the search function to filter down to the trades you want to include in your report and then click on the Download button. You will now have a downloaded file that contains all your tax forms for that year.
Is Koinly Safe?
With cryptocurrency hackers always looking for new ways to steal your crypto, one of the first questions most people ask is “is Koinly safe?”.
To put it simply; yes, Koinly is safe. The software deals with large amounts of sensitive data. As a result, it takes users’ privacy very seriously.
It has a dedicated team of developers constantly working on making its platform as secure as possible.
Koinly’s servers are hosted in the cloud and this means that its team has access to them. It uses 2-factor authentication so it is impossible for anyone else to get into the servers even if they figure out its passwords.
No human can see your blockchain/API keys or passwords. They are encrypted using AES256 with an encryption key that is not available to anyone.
Also, Koinly does not store any private keys on its servers. Private keys are only stored in your browser’s secure storage and are never transmitted to Koinly’s servers.
For extra security, you can also choose to add a second password that is required for certain operations, such as exporting CSV files or deleting wallets. This can be enabled on the settings page.
Additionally, Koinly is hosted on an Amazon Web Services (AWS) server which is one of the largest and most secure cloud hosting providers on the planet.
Related: Best Crypto Wallets in Canada
Is Koinly Suitable for Beginners?
Koinly is a cryptocurrency tax platform that allows users to track their crypto-related activities and generate data for tax purposes.
The platform is aimed at both experienced traders and newcomers to the sector who are looking to get the most out of their cryptocurrency transactions.
Koinly is designed to be user-friendly, with a simple dashboard that ranks various exchanges according to the amount of trading activity they have carried out.
This allows users to quickly see which exchanges are generating the most profit and losses for them.
The site also helps users determine how much tax they owe on their crypto activities by providing estimated figures based on their trading history.
Therefore, if you’re just getting started with crypto, you don’t need to worry about having a lot of transactions to import.
You can simply start by adding your existing balances and then add any incoming or outgoing transactions to your wallet as they occur.
As you go through this process, Koinly will help you calculate your capital gains or losses so that you never miss anything important while filing your taxes.
Koinly Alternatives
Koinly is just one of several crypto tax software that you can use in Canada.
If you’re looking for a cheaper Koinly alternative, or if you simply want to compare your options, here’s a comparison of Koinly with a few other popular crypto tax software:
Koinly vs ZenLedger
ZenLedger is another cryptocurrency tax software platform that helps users manage their crypto taxes and file them.
It supports over 400 cryptocurrencies and can generate a variety of tax reports for traders who use multiple exchanges to buy and sell digital coins.
Both Koinly and ZenLedger offer similar services: they both make it easy for crypto investors to complete their taxes easily. They also offer a free trial so you can try them out before making a decision.
Also, both can import from all major exchanges, auto-calculate capital gains using FIFO, LIFO or HIFO methods and generate tax reports.
However, while both software is very similar and offers comparable services, there are some important differences between them.
The main difference between them is that ZenLedger has a plan that offers unlimited transactions although the plan costs a whopping $999 per year.
Also, ZenLedger’s paid plans offer more transaction limits. With a premium plan from ZenLedger that costs $149 per year, you can make up to 5,000 transactions per year, while a Hodler plan from Koinly that costs $99 per year only allows you to make 1000 transactions per year.
Koinly vs Cointracker
Cointracker is another popular tax software available for cryptocurrency investors. The software is similar to Koinly.
Both Cointracker and Koinly offer a variety of features that can save you time and money when it comes to completing your crypto taxes. However, there are some key differences between the two programs.
Cointracker offers support for over 500 crypto exchanges and wallets, while Koinly only supports over 300 exchanges.
Ultimately, the decision of which software to use comes down to personal preferences.
However, both Cointracker and Koinly offer a solid set of features for anyone looking for tax software for their cryptocurrency investments.
Koinly vs CoinLedger
CoinLedger (formally CryptoTrader.Tax) is another Koinly alternative that is designed to make it easier for cryptocurrency investors to calculate their gains and losses.
Both CoinLedger and Koinly are two tax software that helps cryptocurrency investors in completing their taxes. They can import transactions from multiple exchanges, wallets and blockchains.
But what’s the difference between CoinLedger and Koinly?
CoinLedger is not the best in terms of its features but it does support all exchanges so that makes up for it.
Also, all CoinLedger plans are free for a start. When you want to get more features and get your reports, you can upgrade to a paid plan that suits your needs and budget.
The highest plan on CoinLedger costs $199 per year. With this plan, you can make unlimited transactions all year round.
If you’re looking for a cheaper alternative, then CoinLedger might be for you. It’s one of the cheapest crypto tax services out there.
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FAQs on Koinly Review
Absolutely yes. Koinly is a reputable crypto tax software that calculates your capital gains and losses in a snap. It supports multiple exchanges, wallets and DeFi platforms. Also, it has a team of dedicated developers that are constantly working to make sure its platform is as secure as possible.
Tracking of crypto portfolios on Koinly is completely free, but tax reports are not. To get tax reports, you will have to upgrade to a paid plan that ranges from $49 to $279 a year.
Koinly supports TurboTax online and you can import your data directly from the Koinly website. However, you should keep in mind that Turbotax has a maximum of 1000 transactions.
Therefore if you have more transactions, Koinly will combine your transactions, maintaining the long-term and short-term profits the same as before.
Koinly was founded by Robin Singh who has a finance background and a passion for investing. He created Koinly to help investors keep track of their crypto transactions.
Final Thoughts on Koinly Review
The Koinly software is a tax preparation software which gives you a hassle-free way of preparing your taxes.
It simplifies the entire process of keeping track of your crypto capital gains and calculating your taxes owed to the government, so you can just sit back, relax, and be confident that everything is organized.
Hopefully, now you know the numerous benefits that using Koinly has on your tax filing experience.
But if you’re still on the fence about this software, don’t hesitate to check out any of the Koinly alternatives discussed.
Koinly Review
Summary
Koinly is a revolutionary tax reporting application that allows anyone with a cryptocurrency portfolio to report their taxes and claim their tax losses on each transaction.
