Koinly Cryptocurrency and NFT Tax Software Review

Koinly Cryptocurrency and NFT Tax Software Review

Cryptocurrency and NFT taxes are complicated and confusing. Fortunately, there are plenty of great third party software providers, like Koinly, to help make it easier to track down and document all of your transactions across multiple wallets and exchanges.

Below, we’ll review Koinly, its product suite, and how it can help you when preparing and generating reports for gains or losses on cryptocurrencies or NFTs. 

What Are the Pros and Cons of Koinly’s Crypto Tax Software? 

Pros

Cons

Affordable at all pricing tiers

No mobile app

Unlimited free trial time (pay before receiving tax documents)

Email support only for highest tiers

Easy data importation via CSV files or API integration

Less premium features than other tax services

Generates Form 8949 for users across multiple wallets

Does not support all popular blockchains

Includes margin trading, tax loss harvesting, mining income tax, DeFi taxes, and ICO taxes

 No native support for NFTs, support coming end of 2021

Supports TokenTax and other service integrations

 

Quick error reconciliation

 

 

 

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What Is Koinly? 

Koinly is one of the most affordable and popular cryptocurrency and NFT tax software platforms currently available. It automatically generates tax reports for crypto and NFT trading and integrates with auto-sync to the most popular exchanges, wallets, blockchains, and services. 

Koinly was founded in 2018 by Crispian Robinson, Maria Bilo, and Robin Singh. The headquarters is currently in London, England.

Crispian Robinson is currently the Head of Partnerships at Koinly and has previously worked for ASAP Worldwide, Ramtech Electronics Limited, and YONA. 

Maria Bilo is currently the Technical Recruitment Consultant at Koinly and has previously worked for Flyaps, LumenTech, and Sonic Technology AG.

Robin Singh is currently the Chief Executive Officer at Koinly and has previously worked as a professional tax associate under the National Association of Tax Professionals (NATP). 

 

What Is Koinly’s Crypto Tax Product? 

Koinly's cryptocurrency and NFT tax product helps taxpayers, businesses, and even accountants easily navigate web3 tax filings by tracking, documenting, and reporting on all blockchain transactions.

The platform's portfolio tracking tool makes it simple to view a portfolio's growth over time, current holdings, unrealized and realized gains, and tax liabilities across multiple wallets, exchanges, and services. With auto-sync technology, it automatically calculates actual returns on investment via API integrations, making searching for how much fiat currency you invested into crypto that much faster. It also shows an overview of all your potential income sources, including mining, staking, lending, and more. Finally, it calculates your profit, losses, and total capital gains (both unrealized and realized).

Importing data into Koinly's platform is quick and transparent and Koinly will never ask for private keys or login information. Simply select your exchanges, wallets, or services and auto-sync with API integrations or public wallet addresses. If you'd prefer not to utilize the API integrations, you can also import CSV files. This automatic integration uses AI to detect margin and futures trading, staking and lending, DeFi activity, and even transfers between your own wallets. 

Once you've tracked all your blockchain transactions, Koinly provides reliable cryptocurrency tax reports at the click of a button. In just a few steps after transaction review, you can download Form 8949 or the Schedule D IRS tax form for submission to your tax professional of choice. Koinly also supports international tax reports and easily integrates with services like TurboTax, TaxAct, and H&R.

Finally, Koinly makes it easy to know when something has gone awry, quickly alerting you when the platform finds API issues or other transaction errors. Every change in your asset balance is recorded and backed by an entry, which makes it easy to find and eliminate potential problems. Koinly also highlights missing and duplicated transactions so you don't have to worry about importing the same transactions twice via CSV files and API integration. And if you're uncertain about API integration, don't worry because Koinly automatically double-checks that you've entered the information correctly. If you haven't, you will be alerted and prompted on how to fix the issue. 

Which Exchanges and Platforms Does Koinly Support?

Koinly currently supports 357 cryptocurrency exchanges, 76 crypto wallets, 15 blockchains, and 19 other services. All information is auto-synced, meaning no private keys are needed.

The most popular exchanges that Koinly supports are CoinBase, Binance, FTX, Crypto.com, KuCoin, Gemini, Kraken, Huobi Global, and more.

The most popular wallets that Koinly supports are MetaMask, Ledger, CoinBase Wallet, Crypto Wallet, and more. 

Koinly supports the following blockchains: Bitcoin, Bitcoin Cash, Bitcoin SV, Dash, DigiByte, Dogecoin, EOS, Ethereum, Lisk, Litecoin, NEM, NEO, Polygon, Zcash, and Ethereum Classic.

Koinly also supports services like TaxScouts, Celsius Network, BlockFi, Cointracker, Compound Finance, Delta, Nexo, TokenTax, and more. 

For a full list of exchanges, wallets, blockchains, and services, visit Koinly's integrations page

 

Which Level of Koinly’s Crypto Tax Product Should I Choose? 

Koinly provides five different offerings for differing cryptocurrency and NFT trading experience and activity levels. 

 

Free / All Plans

Koinly offers a free service for all users. It comes with all the necessary tools to track, calculate, and document your cryptocurrency and NFT taxes. You'll have to fill out your tax forms and submit your tax filings independently, though. Users must have a paid plan to download their tax reports from Koinly.

The free version of Koinly allows users to have up to 10,000 total transactions. A transaction counts as any deposit, withdrawal, or trade added to Koinly. If, however, an exchange splits a large transaction into hundreds of smaller transactions, Koinly automatically reduces these smaller transactions into one larger transaction.

All versions of Koinly's cryptocurrency tax product include: 

  • Unlimited wallet and exchange accounts 
  • Portfolio tracking
  • Capital gains previews
  • DeFi, margin trading, and futures
  • Avalanche trades
  • FIFO, LIFO, average cost, and more
  • Wallet-based cost tracking
  • Smart transfer matching
  • Mining, staking, lending, and forks
  • Exchange and transaction fee tracking
  • Over 6,000 cryptocurrencies
  • Over 6 years of historical spot prices
  • API sync with exchanges
  • CSV file import
  • Auto-sync with ETH wallet addresses
  • xPub/yPub/zPub import
  • Bitmex, Deribit, Bybit, others
  • Nexo, BlockFi, others
  • Migration from Cointracking and Cointracker
  • Auto balance verification
  • Negative balance warnings
  • Double-entry ledger for all assets 
  • Advanced transaction filtering
  • Transaction sorting by gains

 

Newbie

Koinly's Newbie pricing tier is the most affordable way to file your taxes on the platform. It is limited to 100 total transactions, so it is not suitable for users with who are frequently buying, selling, and trading cryptocurrencies and NFTs throughout the year. 

In addition to all of the features listed in the Free / All Plans section above, the Newbie pricing tier also offers:

  • Form 8949, Schedule D download
  • International tax reports
  • Comprehensive audit reports
  • Exporting to TurboTax and TaxACT
  • Custom file imports
  • Cost analysis

 

Hodler

Koinly's Hodler pricing tier is nearly identical to the Newbie pricing tier, but it increases the total amount of allowed transactions to 1,000. This is for users who are frequently buying, selling, and trading cryptocurrencies and NFTs throughout the year. 

The benefits of this tier match exactly those of the Newbie tier.  

 

Trader

The Trader pricing tier is, again, nearly identical to the Hodler pricing tier, but it increases the total amount of allowed transactions to 3,000. The common theme here is that the more transactions you have to calculate, the higher the pricing tier. This is for users who have large portfolios and are swapping around assets on a daily basis.

In addition to all of the features listed in the Free / All Plans and Newbie sections above, the Trader pricing tier also offers:

  • Email support

 

Pro

The Pro pricing tier is increases the total amount of allowed transaction to 10,000. This is the highest, non-custom pricing tier that Koinly offers, and most investors, collectors, and traders will not have a need for additional transactions. 

The benefits are exactly the same as the Trader pricing tier.

 

Custom

If you have more than 10,000 total transactions, Koinly is willing to create a custom plan just for you. They've tracked, calculated, and documented tax reports for algorithmic traders with over 500,000 total transactions, according to the platform's website.

 

How Much Does Koinly Cost? 

Koinly’s Crypto Tax Plans vary in cost based on the needs of the user. Please refer to the section above to help determine which level is best for you.

  • Free, $0/tax year
  • Newbie, $49/tax year
  • Hodler, $99/tax year
  • Trader, $179/tax year
  • Pro, $279/tax year

 

Is Koinly Accurate?

It is impossible to verify that the Koinly Crypto Tax Software is 100 percent accurate. However, the information is taken directly from exchanges, platforms, or CSV files that the user uploads. Koinly will likely be accurate as long as the inputs in which it is given are accurate. 

 

How to Do Your Crypto Taxes on Koinly

Koinly offers a quick and affordable way for cryptocurrency and NFT investors, collectors, and traders to do their taxes online. 

First, you'll need to sign up for an account. Head over to Koinly.io and click on "Sign up" in the upper-right hand corner of the website.

Koinly will prompt you to provide your name, email address, and a password to create an account. Alternatively, you can sign up directly with a Google or CoinBase account. 

Next, Koinly will ask you to review your settings. Select the appropriate base currency and home country, and click "Continue."

Once you've officially set up your Koinly account, you'll need to import all relevant exchanges, wallets, and services. Overviews on how to import each wallet specifically can be found on Koinly's YouTube account. For this example, we will use Binance, one of the most popular cryptocurrency exchanges in the world. 

To import an exchange, wallet, or service, first find it by searching on Koinly. In this case, we will click on "Binance." You can change the wallet's name if you need a more specific naming criteria and import from file or setup auto-sync. Auto-sync is faster and recommended.

To set up auto-sync on exchanges, you'll need an API key and API secret from Binance. Instructions on the API import can be found here. If there are API limitations, you'll see a yellow button next to the imported exchange, wallet, or service with troubleshooting instructions.

To set up auto-sync on blockchains and wallets, you'll need a public key. Never provide your private keys to anyone. The public key is safe to share.

Once you've imported all relevant exchanges, wallets, and services, click the blue checkmark button in the upper right-hand corner of the screen. You can always add more exchanges, wallets, or services later if you forgot one.

It will take a few moments for Koinly to import all your transactions, and once that process is completed, double-check that the information is accurate. The quickest and easiest way to do this is to compare the balances that Koinly generated with the real balances in your accounts.

As long as there are no noticeable concerns, head over to the Koinly dashboard by clicking "Dashboard" in the upper left-hand corner of the screen. This will give you all the information you need to see total value, cost basis, unrealized gains, and taxable earnings. 

Once you're satisfied with the information available in Koinly's dashboard, go to "Tax Reports" to download all necessary tax documents. If you don't need to file taxes, Koinly will alert you. Remember, only paid accounts have access to tax report downloads.

 

Lucky Trader’s Koinly Review Conclusion 

Koinly is a fast and affordable way to track, calculate, and report your cryptocurrency and NFT tax liabilities. 

With its endless free trial (no credit card required), Koinly allows users to use its product with fully committing at first. Once they're satisfied with Koinly's cryptocurrency and NFT tax software, users can upgrade to a paid version to print out their tax forms. 

Despite no email support for most users, Koinly does offer in-depth, how-to videos on their official YouTube channel, which guide users through setting up their accounts, connecting to exchanges and wallets, handling API integration errors, and more.

Koinly is simple to use and beginner-friendly. While it does lack some of the more complex features that other tax software providers have, its price tag makes up for it. Koinly has a best price guarantee on its product. 

 

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For even more crypto tax software reviews, please see our TokenTax or ZenLedger software review.

Do you still have questions about cryptocurrency and NFT tax obligations? Our friends at RKO Tax documented seven key things users should know before the end of the 2021 tax year.

Disclaimer: The author or members of the Lucky Trader staff may own NFTs discussed in this post. Furthermore, the information contained on this website or the Lucky Trader mobile application is not intended as, and shall not be understood or construed as financial advice.

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