You’ve come to the right place if you’re looking for a Koinly review that will break down all the big boring words about crypto tax and tax returns.
Koinly is basically a tax reporting software specifically for cryptocurrency. It helps you sort out the taxes linked to your crypto-related actions and helps you figure out how to spend as little as you legally can when taking care of your taxes. Sounds pretty useful, doesn’t it?
That’s far from all there is to Koinly, though. There are many features and peculiarities about the platform that you should know about, and our Koinly review is about to spill the tea.
What Is Koinly and How Does It Work?
Let’s kick off this Koinly review by telling you what the platform is really all about. Koinly is a tax reporting software specifically for cryptocurrency.
It helps you sort out the taxes linked to your crypto-related actions and helps you figure out how to spend as little as you legally can when taking care of your taxes.
Since regulations and laws around cryptocurrency constantly seem to be changing as time goes on, it is highly recommended that you have some help when trying to ensure your crypto activities are still in line with the law. Meeting your crypto tax obligations is crucial as a crypto enthusiast.
This is where platforms like Koinly come into the picture. Koinly can assist crypto users to sort out their taxes in over 20 nations. Their software can also produce a comprehensive tax report on your portfolio in less than 20 minutes. Keep reading to find out more about this platform that could be very useful to you.
Wrapping your head around how Koinly works isn’t complicated. We’re here to guide you along the way. But first, let’s go over its pros and cons.
Koinly Pros and Cons
- It works in over 20 jurisdictions of tax
- There are several tiers with different costs
- The app has a free version
- It supports decentralized finance and staking related to cryptocurrency
- It supports over 6,000 currencies and 350 exchanges altogether
- Services cannot be paid for with other cryptocurrencies
- The app starts to get more expensive for traders who use it frequently
- It is more expensive relatively compared to other crypto tax platforms
The features of Koinly are as follows:
1. Service Integration: Well over 6,000 blockchains are integrated by Koinly. The platform also lets you automatically import Ethereum, Bitcoin, NEO, and Litecoin.
In addition, it is integrated with 350 crypto exchanges including but not limited to Binance, Coinbase, and Kraken.
It also links with Blockfolio, Delta, and wallets (up to 75 wallets). Can’t forget to mention that it helps to keep track of your staking and mining activities.
2. Support in Several Countries: Koinly can be used in over 20 countries across. The span covers Europe, Asia, the Americas, and Oceania.
The platform also lets users create localized Rf1159, Form 8949/Schedule D, K4, and Sheet 9A reports on tax.
3. Ease of Importing Data: The platform lets you connect different services through APIs and data for import keys. CSV file imports (manually) and xPub/yPub/zPub imports are supported by Koinly.
Data migrations from BlockFi, Nexo, Bitmex, and Debirit are also supported.
4. The Free Account Option: Up to 10,000 transactions can be tracked. You can also generate tax previews for capital gains. Tracking crypto trades/activities can be easy with the free account which can be used for an indefinite period of time.
5. Customer Support: With an FAQ page and a section for support, Koinly answers the questions and queries directed at them. E-mail, live chat, Facebook page, and Twitter are also ways you can reach them.
6. Resources: With Koinly, you get a blog for frequent informational updates, a crypto tax calculator, tax guides, and a tax accountant list.
How to Use Koinly
To use Koinly effectively, follow the following steps below:
1. Connect exchanges and wallets by navigating to Wallet on the app and clicking on “Add exchange/wallet button”. An extensive list of exchanges will be displayed to you, then you choose the one you want.
When you choose, you will be given an option to import data. You have the choice to let Koinly connect using their API or you can utilize your public wallet address. You can also upload a CSV file.
You can also check out our article on the best crypto wallet Canada has to offer.
2. Next up, you have to review your transactions. This can be done by navigating to the Transactions tab.
Always remember to review your transactions with care (as Koinly is not accurate %100). Automatically, it will always identify your transactions as a reward, cost, buy, and so on. Keep in mind that the identifiers might not always be spot on.
3. Downloading tax reports is the next thing you need to do. This can be done by navigating to the Tax Reports section and clicking on which reports you wish to generate and the tax year of the reports.
This should be followed by selecting the forms with the drop-down menu. You can download any form you need to be in line with Canadian tax regulations. These forms can be submitted with your tax return.
How to Sign-Up for Koinly
Signing up with Koinly is a walk in the park. You just have to visit Koinly.io’s homepage and select the Sign-Up button at the top-right. A form for signing up will be made available to you.
You can carry out most of the sign-up process automatically by choosing to log in with your Google account or Coinbase. As an extra option, you can choose the email sign-up process just in case.
When you are past this phase, you can begin entering all of your relevant information (including your location and the base currency that should be in the application).
Entering more relevant information helps Koinly to estimate the taxes that apply to your crypto assets. This will allow them to be able to automate the tax reporting process more efficiently.
Koinly Fees: How Much Does Koinly Charge?
Four versions of the Koinly crypto tax application are available to the public and each version of the software carries a cost peculiar to it. These versions are explained below:
Free Koinly: This tier is completely free, as expected. Even though a lot of the features available on the paid versions are still available on the free Koinly, users of the free version can’t generate tax reports with the application.
You will be able to import crypto portfolios in their entirety from wallets and exchange accounts that are owned by you, but you will not be allowed to fully use the capital gains preview which is generated with the software.
Koinly’s free version is great for estimating the taxes you owe but is no good if you want the application to file taxes on your behalf.
Newbie ($49/Year): This paid version, which is $49 per year, is the cheapest you can get on Koinly. What sets it apart from the free is that you can report taxes in the app. It is also worth knowing that your crypto transaction tracking threshold is lower than the free version’s (drops to 100).
Other features include custom file imports and more detailed cost analysis of how your taxes were calculated by Koinly. This Koinly review recommends this version for those who make few trades yearly and those who are fans of automation.
Hodler and Trader ($99/$179): These two are the Koinly big boys. The Newbie tier and Hodler have the most features in common except the fact that Hodler lets you import as high as 1,000 crypto transactions instead of 100. Hodler costs $99 per annum.
As for the Trader version, you get access to a limitless amount of transactions as regards tracking. You also enjoy customer support available through e-mail. The Trader version costs $179 per annum. This Koinly review recommends it for traders who spend a lot of time moving from one cryptocurrency to another.
What Countries Does Koinly Support?
Koinly supports the following countries around the world:
- United States
- New Zealand
- United Kingdom
- Czech Republic
- South Korea
What Exchanges are Supported?
With over 350 exchanges supported by Koinly, you have a rich roster to explore. The following are some of the best crypto exchanges in Canada you will find there:
Is Koinly Safe?
Koinly is very particular about its layered measures put in place to combat security breaches.
The platform will not need your private keys or have access to the assets contained in your exchange accounts. But it establishes a connection with your accounts through API. This Koinly review recommends that you disable withdraw ability and trade during the configuration of your API.
API and blockchain keys are encrypted with AES-256 gcm, then stored. All data transferred to and from Koinly are also encrypted with 256-bit encryption technology.
Amazon Web Services and Heroku are used for hosting and keeping data safe.
Koinly Compared to Other Crypto Tax Platforms
It’s time to see how Koinly holds up when compared to other crypto tax platforms. The table below should do just that:
Hodler and Trader ($99/$179 per year)
$65 Basic, $199 Premium, $2500 VIP
Ranges from $59 to $199
256 bit encryption
It uses TLS encryption
It uses SSL encryption
Works in over 20 jurisdictions of tax
Filing taxes and automatic tax reports
Users can monitor their transactions on-the-go
It has a free version
Helps with tax filing
Has apps for both Android and iOS
It gets more expensive with use
Doesn’t have a free plan
Only 25 transactions available with the free plan
Conclusion of Koinly Review
Koinly is a valid option if you are looking to sort and tidily organize your crypto-related actions. The software definitely makes filing tax returns way easier. It is easy to use and it lets you link up your wallet addresses and exchange accounts in no time.
With its wide range of supported countries and cryptocurrencies, many people around the world have the privilege of using the service. From keeping track of all your crypto tax activities all the way to making sure you are saved from the headache of filing tax reports, they’ve got you covered.
This Koinly review article definitely recommends Koinly.
FAQs on Koinly Review
Is Koinly Good for Beginners?
Koinly is specifically targeted at people who are already active when it comes to crypto-related activities like trading, investing, mining, lending, and staking. So, you might struggle a bit if you are entirely new to the wild and wonderful world of cryptocurrency.
But don’t be discouraged if you’re fresh to it all. You can also use the platform to keep track of the timeline of your crypto transactions (as far back as five years, which means this feature is even more useful for experienced traders as well).
Why Are Koinly’s Charges High?
As a result of their dominance and brand reputation among crypto tax platforms, they charge higher prices compared to a lot of the others. Frequent traders can look for cheaper options for their crypto tax needs if they feel the costs are too high.
But remember that high costs often come with high value.
How is GST/HST Calculated on Cryptocurrency Taxes in Canada?
As a business owner/self-employed person who makes $30,000 or more yearly, you are expected to file GST/HST when the time for tax comes. In the event of you getting paid in cryptocurrency for your goods and services, you will need to estimate the GST.
This is done by making use of the average market value at the time of exchange of your assets. Records of GST have to be organized for anybody who is in charge of a business or self-employed.
This Koinly review recommends that you learn as much as you about GST/HST calculations.
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
The primary purpose of Money Reverie is to help everyday Canadians make better financial decisions by providing up-to-date financial news and information, reports, product reviews, and government programs.