How Does Cryptocurrency Tax Software ‘Koinly’ Work?

Koinly is an online crypto tax platform that was founded in the year 2018 by Robin Singh. The company retains business in various countries such as the UK, US, Sweden, Germany, etc. However, it allows a person to monitor all their crypto activities and generate regulatory-compliant tax reports. 

It also permits people to integrate their wallets and keep track of activities, including trading, mining, staking, lending, and airdrops. Moreover, it helps simplify the recording process of all the ins and outs. So, what is the main purpose of Koinly?

The main purpose of koinly is to simplify crypto taxes. The main feature is that it automatically draws transaction data from the most commonly used crypto exchanges. Basically, the main work of koinly is to monitor various data points such as wallet transfers and market prices. This platform keeps track of the users’ gains and losses to streamline the tax reporting process.

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It is worldwide as the platform is available in various other countries and integrates over 6,000 blockchains, 350 exchanges, and 75 wallets. It also provides a comprehensive crypto tax reporting service. Due to this reason, the majority of leading crypto service providers are supported. Koinly also integrates with other crypto lenders such as Nexo, BlockFi, and Compound. 

The most important fact is that koinly supports automatic import for 14 blockchains, including Bitcoin, Ethereum, Litecoin, NEO, and EOS, with other 6000 cryptocurrencies supported via CSV import and manual entry. So, now let’s discuss a few things about koinly?

A Much Ado on Koinly 

It is basically a tax solution for cryptocurrency investors and accountants. A person who owns multiple exchange accounts or wallets knows how much it pains. Especially when it comes to declaring taxes. However, Koinly solves this problem. Koinly review covers everything, such as what a person is to know about this leading tax software. Hence, the person can decide if it is right for them.

Features of koinly

Koinly Cryptocurrency Tax Software

The platform has multi-country support. It is available to people in various countries of Europe, Asia, Oceania, and the Americas. One of the most important features of koinly is it allows the users to generate localized Form 8949 and Schedule D, K4, Rf1159, and Sheet 9A tax reports.

Koinly is designed in a way to directly integrate with over 6,000 different blockchains, delivering native support. It includes automatic transaction imports for major cryptos such as Bitcoin, Ethereum, and Litecoin. One of the most important facts is it integrates with 350 exchanges, including Binance, Coinbase, Kraken, and various portfolio apps such as Blockfolio and Delta. It also allows a person to keep track of mining, staking, and various other DeFi activities. Anyone who wants can take the help of koinly review without any doubt.

Moreover, it grants a person to connect with various services via API and import key data. Various manual CSV file imports are also supported here.

One of the most important features is the platform is free to track up to 10,000 transactions and generate capital gains tax previews. However, anyone can use the free account indefinitely to track their crypto trades and activities.

Koinly, as a platform, provides a handy list of various resources. The resources are as follows: Crypto Tax Calculator, Regional Tax Guides, a tax accountant list, and a blog so users can remain up to date.

Koinly is safe or not?

The most important fact is that cryptocurrency transactions mean it’s critical to remain wary of any platform or service that interacts with cryptocurrency wallets. Still, Koinly can pull transaction information through API access to exchanges. The platform prioritizes customers’ trust and user data safety and employs several security protocols to guard against any exploits or breaches.

One of the major benefits of this software is that it doesn’t require private keys to audit tax-relevant crypto data. Another important fact is the platform interacts with wallets and exchanges through read-only API access. It also ensures user crypto remains secure.

Basically, all API blockchain keys are encrypted using aes-256-gcm before being stored. The website also completely serves over HTTP with all data sent to or from koinly encrypted using 256-bit encryption.

Is it Suitable for Beginners?

The platform may not be suitable for beginners. It primarily aims at people already engaged in various other crypto-related activities such as trading, investing, mining, staking, lending, etc. The most important fact is basically it is useful for crypto enth