Koinly Review: How to track crypto portfolio and pay taxes

What is Koinly?

The Koinly platform is a complete tool not only for tracking a cryptocurrency portfolio. It also allows you to generate tax reports to trade and invest within the law. It offers automatic generation of 6+ tax reporting forms, adding different sources of cryptocurrency, including mining.

Koinly can be used for free, but with reduced functionality. Paid versions cost from $49 to $179 a year. Notably, it takes into account the tax year, not the calendar year.

Koinly features

The most important facts about our Koinly experience in a nutshell: 

• With Koinly, you can automate all your crypto-taxes
• Koinly supports data import from over 730 cryptocurrency exchanges and wallets (API and CSV)
• Clear design and numerous step-by-step video tutorials leave no room for confusion
• Track and document all your portfolios automatically - import 10,000 trades for free

Tax report for a fee (from 39 €) - 20% more.  Cheaper with the promo code Koinly "Talerbox"

Koinly Advantages and Disadvantages

The benefits of Koinly:

• A central overview of all your cryptocurrency transactions and portfolios
• Easy to create tax reports for your cryptocurrency transactions
• Supports 730+ cryptocurrency exchanges and cryptocurrency wallets and over 17,000 cryptocurrencies
• Import transactions via API and CSV
• Comprehensive free version

The disadvantages of Koinly:

• There is a fee for downloading and exporting tax reports

How does Koinly work?

Koinly allows you to create clean tax reports on your cryptocurrency transactions for the tax office. You can use Koinly online through the provider's website (Koinly.io). There is no need to download any special software.

With Koinly, you always have an overview of all transactions on all cryptocurrency exchanges and wallets that you connect to a cryptocurrency tax calculator. However, Koinly is currently only available in English. The first possible hurdle for those who are not very confident in English.

How to register Koinly?

One of the positive aspects is that you can use Koinly for free. Just register and get to work. All features can be subjected to extensive testing. You can find out if your cryptocurrency exchanges and wallets can be imported easily and correctly. The same applies to staking, NFT or mining.

Only if you want to create a tax report with Koinly, you will have to pay for it. The price depends on the number of transactions and starts at 39 euros. You can find more information on pricing in the section - Koinly costs. 

With our Koinly 'Talerbox' promo code, you can save 20% on all tax packages. This is valid for the current tax year as well as for all future tax returns. Simply register via our link or enter the code "Talerbox" at checkout.

Portfolio and wallet monitoring

Koinly offers you an overview of your various wallets and cryptocurrency portfolios at any time. The dashboard shows the current balance of your account as well as the composition and price dynamics of your crypto portfolio. You can also immediately see how much fiat currency you have available on the cryptocurrency exchanges you use.

The wallet overview shows all the wallets you've added. Here you can immediately see what cryptocurrencies you hold on which crypto exchanges and wallets, and what transactions you have made so far.

Under the Transactions tab, Koinly lists all your transactions in detail. Koinly can also track NFT transactions. Using various sorting functions, you can sort your transaction history or display only certain transactions.

Koinly records up to 10,000 transactions free of charge. However, if they also have to be recorded in the tax report, there will be a cost.

Conclusion: Personally, we think the Koinly model is pretty good. Here you have the opportunity to check whether it all works for your cryptocurrency exchanges and wallets as well. Using a crypto-tax tool is a long-term option. Here you have the opportunity to test several providers for free before you fully decide on your choice of crypto-tax tool.

Staking and NFT transactions tracking

With Koinly, you can not only track your regular cryptocurrency trading activity. Betting fees and NFTs can also be tracked and booked through Koinly. To do so, however, you have to tag them correctly yourself.

For example, if you send tokens to a staking pool via Ethereum or Binance smartchain, you tag that transaction as "Sent to pool". If you receive rewards for bets, you can mark them in Koinly under the heading "Rewards".

Koinly Fees

In its basic version, Koinly is free to use. The free version of Koinly allows you to import and track various wallets and cryptocurrency transactions. You can generate FIFO (First In - First Out) and LIFO (Last In - First Out) tax reports and get preliminary information on your tax-relevant cryptocurrency profits.

However, if you want to download tax reports or export them to tax software, you'll have to switch to one of the paid models. Koinly offers four different options:

The different models differ primarily in the number of transactions that can be recorded in the tax report. However, you can activate additional functions for each tax plan for an additional fee. For example, you can create tax reports for additional countries. For a high surcharge, one of Koinly's tax experts can even check your tax report.

Payment methods

If you would like to purchase a tax plan for the calendar year, you can choose one of the following payment methods

• Credit card (Visa/Mastercard)

• Debit card

• giropay

• iDEAL

• Bancontact

• bank transfer eps

• Przelewy24

You can also pay with cryptocurrency. Koinly accepts Bitcoin, Ethereum, USD Coin and Dai. 

Security

Koinly was founded in 2018 and is headquartered in London. Over the past few years, Koinly has built a reputation as a reputable and reliable tax programme. According to its own figures, more than 11,000 tax reports have been generated with Koinly to date. The tax tool currently tracks around $250 million worth of crypto-assets.

In addition, using Koinly is completely secure. Koinly can only read your wallet data via API keys. However, it has no access to make transactions on its own. Nor can hackers gain access to your wallets and deposits in this way.

Connecting the exchange

Connecting Koinly to an exchange or wallet is easy. By registering with Koinly, you can choose from a list of 734 different wallets. Wallets from all popular cryptocurrency trading platforms are covered.

Connecting wallet

You can add additional wallets/cryptocurrency exchanges to Koinly at any time. To do this, simply click on the blue "+ Add wallet/exchange" button in the wallet overview. You will be taken to an overview of all available wallets and proceed as described above.

You can add as many wallets as you like without any restrictions. If you want to remove a wallet, click on the three dots behind its name and select the 'remove' option.

The Talerbox experience: Koinly supports more cryptocurrency exchanges and wallets than any other cryptocurrency tax tool. Importing transaction histories is very easy here.

How do I make a tax report?

If you want to create a tax report in Koinly, first select the 'Tax Reports' tab.

This will show you straight away if some of your connected wallets still require additional action, such as importing data. Koinly needs a complete transaction history in order to generate tax reports correctly.

Talerbox tip: If transactions are incorrect or missing, you must correct this yourself. There is no "magic" function here, like in Accointing, which automatically fixes everything.

Conclusion

Our experience with Koinly has been positive. Especially noteworthy is how many wallets, cryptocurrency exchanges and coins are supported here. If you use many different crypto-exchanges and also like to trade exotic coins, no other cryptocurrency control tool currently offers you such comprehensive support as Koinly.

Our test of Koinly showed that this platform can also convince with its feature set and flexibility.