Cryptobase ATMs’ Guide To Navigating Bitcoin and Taxes With Koinly
With the cryptocurrency tax app Koinly, you can quickly figure out all the taxes associated with your crypto activities and see how to save money on these tax obligations. Currently, cryptocurrency laws and regulations change monthly, so you’ll probably need a little help to comply with your crypto tax obligations.
Koinly simplifies the process of managing cryptocurrency holdings, generating a complete tax report for your crypto portfolio by taking in all the information about your exchange accounts and personal wallets.
Who Needs Koinly?
In addition to supporting a large number of blockchains, exchanges, and other services, Koinly provides support for the average person on the street who bought bitcoin a couple of years ago and wants to know what their capital gains taxes would be.
In addition, Koinly supports tracking for several advanced crypto use cases, such as mining, lending, borrowing, and staking. As a result, Koinly is probably the perfect option if you’ve been around the crypto space for at least a few years.
Getting Started With Koinly
Koinly is incredibly easy to use. Go to Koinly.io and click the sign up button on the top right of the home page. A registration form will appear. By signing up with your Coinbase or Google account, you can automate most of the process. You can also sign up by email.
Once you’ve gone through that first page, you can enter more detailed information about your location and the base currency that should be used in the application. Through the entry of more detailed information, Koinly can determine what taxes you must pay on your crypto holdings and automate more of the overall tax reporting process.
How Much Does Koinly Cost?
Customers can choose from four different versions of the Koinly crypto tax app, each with different pricing.
- Free version
Koinly comes with a free tier requiring no payment. Koinly’s free version provides most of the app’s features; however, users will be unable to generate tax reports using the free app.
All your exchange accounts and wallets can be imported (up to 10,000 transactions). With the app, you can generate an automatic capital gains preview, but you won’t be able to do much with it.
You’ll need to pay for any software that will complete and file your taxes. Koinly is essentially free for estimating what taxes you’re going to owe.
- Newbie version
Koinly’s least expensive paid plan is $49 per year. You can report your taxes within the app with the Newbie version of the software. The Newbie version increases your crypto transaction tracking limit to 100 to 200.
In addition to custom file imports for your crypto portfolio, Koinly’s paid version includes a detailed cost analysis of how Koinly calculated your taxes. This is the best option for traders who only make a few trades per year and want their tax filings wholly automated.
- Hodler and Trader versions
Hodler and Trader are Koinly’s top paid tiers. You can import as many as 1,000 crypto transactions rather than just 100 when you’re a Hodler, so it’s the same as the Newbie tier. A Koinly Hodler subscription costs $99 per year.
You get unlimited transactions for tracking with the Trader tier and full customer support via email. In Koinly’s Trader version, priced at $179 per year, traders constantly moving between cryptocurrencies will find the most value.
Where Does Koinly operate?
This crypto tax tracking app can be used by most cryptocurrency users around the world, according to the Koinly website. In addition, in many jurisdictions, there’s a standard reporting template, and if your country uses it, you’ll be able to use Koinly.
Koinly supports the following countries:
- United States
- New Zealand
- United Kingdom
- the Czech Republic
- South Korea
How Many Exchanges Does Koinly Support?
Because more than 350 exchanges are supported by Koinly, listing them all would be impractical. Exchanges vary in terms of the level of support they provide. Koinly doesn’t have complete access to every exchange application programming interface activity that has ever occurred on your account, for example.
It would be best to investigate whether Koinly can support activities such as buying bitcoin with a debit card or checking margin trading history before choosing Koinly as your crypto tax solution.
Koinly supports the following popular exchanges and other services:
What’s the Downside?
There aren’t many reasons not to use Koinly for your tax needs. It’s become the default option for crypto tax reporting for a good reason.
However, due to Koinly’s brand recognition and overall dominance in the marketplace, it can charge higher prices than other options available. Some people may find the higher costs off-putting, but remember that you get what you pay for in the crypto world.
The fact that you cannot pay for Koinly’s services in cryptocurrency may also be a deal breaker in the eyes of a bitcoin or crypto purist.
We hope you enjoyed our guide to Koinly. Cryptobase ATM is one of the premium suppliers of bitcoin ATMs in the U.S. We provide an excellent opportunity for business owners to capitalize on the growing interest in crypto trading.
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Bitcoin ATMs are a great way to get cash for crypto and are one of the most reliable and discreet methods to purchase bitcoin. You can attract extra business by hosting a bitcoin ATM in your business. Let us know where to put the machine, and we’ll handle the rest. For more information, contact Cryptobase ATM today.